People who have only recently started working with cryptocurrency usually lose money on it. There may be many reasons for this. Acting emotionally, newbies can act irrationally and make mistakes in pursuit of quick profits. They can not only unreasonably invest their money in dubious enterprises, but also invest too much in entertainment at m.22bet.co.ke/casino/, use the wrong strategies of accumulation and investment. To avoid this, we have collected tips from experts who have been working in the crypto industry.
Buy and Forget
Perhaps the simplest cryptocurrency strategy is to buy it and keep it as an investment for a long time. In this case, money is invested in the asset that will not be needed for life in the near future. Otherwise, if the value of the coin falls, you will have to sell it at a loss.
The strategy assumes long-term investments in blue chips of the cryptocurrency market, for example, BTC, in anticipation of the price growth in the coming years. Long-term money is invested here, which the investor does not take if he wants to go on vacation or buy CASCO for his car. The horizon for such investments is from 5 years.
Finding the perfect moment to buy bitcoin is literally impossible. At whatever price the trader buys the asset, it is highly likely that it will decline before entering the long-term growth phase. Therefore, some investors use the “averaging” strategy.
This strategy works like this: the user splits his capital into several parts and buys bitcoin with them over time. So if the price of an asset goes down, you can use it as an opportunity and buy more coins. In this case, the average BTC purchase price will decrease.
The simplest strategy for beginners is to buy $ 10 worth of bitcoins every day. Do not waste time on other assets, do not spend money on currencies that are less known and that have been on the market for as long as Bitcoin. Just buy the most famous digital currency on a daily basis. In a long-term strategy, this approach always justifies itself.
You can invest not only in bitcoin. Conversely, by dividing the capital between BTC and other cryptocurrencies, higher profits can be generated. However, the risks in this case also increase. This is due to volatility. Altcoins have a significantly higher rate than the main digital coin.
This strategy includes the ability to rebalance the portfolio. The trader adds a wide range of crypto assets to the portfolio with the ability to sell something at any time, depending on the dynamics of the rates. The calculation is the same – over time the market grows, but at the same time, the investor will retain a sense of control over the situation.
Investing in cryptocurrencies with new blockchains in addition to bitcoin. They differ from older altcoins in newer technologies and have a greater potential for profitability.