TOP 7 Crypto Investment Strategies That Work: We know that crypto investing can seem complicated, and mistakes not only lead to losing money but can also make you want to quit the industry altogether. Don’t worry, most of us have been there.
If you are a crypto beginner and don’t have an investment strategy, well, you’ve come to the right place! Reading, you can learn about some strategies that help to have better-investing results.
Build A Balanced Portfolio
First of all, remember the old saying: don’t put all your eggs in one basket. Investing all your money in a meme coin is not a good idea. The risk is real, especially in the case of high-risk, high-reward projects, where the volatility is so significant that you could lose your money in the blink of an eye.
The best advice we can give you is to always have a well-balanced portfolio with an adequate amount of cryptocurrencies: try not to have too little, but too many are not good.
Avoid investing in projects that have the same utility, and make sure you read and understand what each of them does: their purpose.
DCA
A golden rule is not to invest all your money at once. You may have heard of DCA before, but if you haven’t, you can watch our video; we go into more detail there.
Try to get in the habit of investing small amounts regularly, regardless of whether you do it once a month or once a week; The important thing is to stay consistent.
This way, you will not be aware of price trends every minute or stress, will not risk all your money, and will learn healthy habits to invest.
HODL
Sometimes you can earn more if you don’t do anything with your investments.
The best example of this is the holding company, or HODL, as it is called in the world of cryptocurrencies. TOP 7 Crypto Investment Strategies
Although it sounds simple, doing nothing with your assets is difficult, especially during a bear market when your portfolio can lose half its value in a second.
Think of those who invested in Bitcoin early on, bought it for $1, $10, $100 or $1,000 and got rich just by holding it for a long time. Those people were patient and made a huge profit when they decided to sell. So remember, at least once in a while, to make some profit on your investment, especially during bull markets.
Buy On The Downside, Not On The Upside.
One way to do this is by applying this rule: buy low, sell high. If you felt left behind the last time Bitcoin hit an all-time high, don’t worry, you’ve seen what happened next: tears fell as the price dropped. This is why you should never buy coins when their prices are high. Instead, be patient and wait for the market to stabilize; we can assure you that it always does. TOP 7 Crypto Investment Strategies
Although it seems challenging to invest when the price is down and everyone is discouraged, try not to be influenced by anything. Do it because there is an opportunity to double or triple your profits. TOP 7 Crypto Investment Strategies
Remember that what goes up must come down!
Prioritize Liquidity
When things crash, it’s essential to have the liquidity to buy the collision right then and there. We recommend keeping at least 25% of your portfolio in stable coins, even 40-50% in tough times. This way, making purchases when you want and taking advantage of low rates is easier. TOP 7 Crypto Investment Strategies
By the way, you can also make money through stable coins, and you can enjoy a pretty good interest rate if you stake them on exchanges or Defi platforms – you are locking them there, and they act as deposits. TOP 7 Crypto Investment Strategies
We have a video explaining stable coins and how you can use them for profit, so click here.
Index Funds
Still, you may not have time to learn about projects or study to develop investment strategies. No problem, we have a solution for this too!
The easiest way to invest is in an index fund, a collection of assets selected to offer the best possible return. TOP 7 Crypto Investment Strategies
For example, Stakeborg DAO’s index fund, ILSI, comprises ten projects from various crypto branches. In this way, you do not have to deal with the choice of cryptocurrencies to invest in or decide what part of your portfolio should be allocated to a project because the index will do it for you. TOP 7 Crypto Investment Strategies
If you are a beginner in crypto, an index fund is undoubtedly a great option!
Conclusions: Make A Profit.
These strategies are here to help you and offer you a good result. But do not forget that while it is essential to make a profit, it is also important to capitalize on it.
Withdraw part of your profits and permanently save some stable coins for the bear market.
And always have a well-established plan when deciding what to do with your money.
Also Read: When To Buy Cryptocurrencies?
