Bitcoin is, undoubtedly, the most rewarding yet risky investment opportunity accessible today. If you know what you are doing, you can make a lot of money investing in bitcoin. That is why so many people are intrigued with getting into the bitcoin industry. This essay aims to help anyone who wishes to try their hand at cryptocurrencies and Your Crypto Investment.
Cryptocurrency is not a get-rich-quick program in which you invest today and earn tomorrow. It is a legitimate investment, but it is still uncontrolled. No bank backs it up. Only those who are ready to take risks should apply. And, of course, you must first learn it. Before you decide to invest in Your Crypto Investment, consider the following factors.
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But first, what is cryptocurrency and what about Your Crypto Investment?
A cryptocurrency is a type of digital money created to serve as a means of trade. All transactions are secured using encryption. It is part of a blockchain, which is a distributed ledger system. Cryptocurrency is a decentralized, peer-to-peer, pseudonymous, encrypted, and distributed form of digital money. Satoshi Nakamoto’s Bitcoin was the first cryptocurrency to debut in 2009. If you are unsure what bitcoin is, check out the Cointelegraph explanation. There are various ways to boost your cryptocurrency revenue. It all depends on what you want to achieve and where you feel most at ease.
Trading Cryptocurrency
Crypto trading is one way to earn faster in the cryptocurrency world. All you have to do is sign up for a crypto exchange, fund your account, then start trading. An example of a crypto exchange that does these three simple steps to start trading is Bitcoin motion.
Before you begin trading, you must master various trading abilities, and it is not simple. You have to understand chart patterns, indicators, technical analysis, and a lot more. Some people profit more from trading than holding, while others do not.
In the crypto realm, there are two sorts of trading methods. Day trading and swing trading are the two types of trading. In day trading, you purchase a coin at a low price and sell it at a high price the next day (buy low, sell high). The strategy in swing trading is to buy cheap and sell high. They only differ in the length of the trading time frame. Your position might endure for a week or perhaps months.
Hodling Coins
Most traders choose to adopt this long-term technique. This strategy indicates that you will not sell the coins you purchased right away because you believe their value will rise over time. But why is it referred to as hodling rather than holding? It started on Bitcoin internet forums after a user mistyped the word hold. Eventually, the crypto community began to refer to it as HODL (Hold On For Dear Life).
Hodling is a common practice among bitcoin speculators, and they claim that this method may make more money than trading. If you are a complete beginner, this is the best strategy. This method is used in other markets as well. Keeping your coins in the bitcoin market for more than a year is already considered a long-term plan.
Coin Investment Diversification
Diversification has shown to be a successful technique. Various investment businesses, such as stocks, mutual funds, and ETFs, also do it. Diversification is a strategy for reducing risk. There is a saying that preaches you should not put all your eggs in one basket. It is not wise to concentrate your cryptocurrency investments on just one coin. That is to say, do not put all of your USD 400 into Ethereum just because you believe the price will rise in three years.
If the crypto industry has seen a lot of growth in the previous three years, and competition in the Ethereum market has grown while its value has plummeted, all of your investments will get wiped out. But when you diversify, you buy different coins like Bitcoin, Eos, Tron, Dogecoin, your money is not concentrated. If the value of one coin drops, you still have a lot of other coins that might rise in value.
Coin Picking Stage
You may begin investing in cryptocurrencies with Blue Chip cryptocurrencies. These are cryptocurrencies with more than 2 billion USD market capitalization. Others argue that even a 30 million USD market cap in cryptocurrency is considered blue-chip. But, to be safe, stick to market caps of 2 billion USD and more. The top 10 coins that you can see in Coinmarketcap are also considered Blue Chip Cryptos.
You can also buy low-cap coins or those with the smallest market capitalization. When a coin’s market cap is low, it has a strong possibility of increasing value. Take notice, though. Low-cap cryptos are very risky. As a result, you must conduct extensive studies to determine the viability of a low-cap coin. If the value rises, it is quite lucrative.
Monitoring your portfolio
You will not know what proportion of your coins’ earnings you are getting if you do not keep track of your portfolio or holdings. This step is necessary so that you can keep track of your coins’ performance. There are plenty of crypto platforms available now to keep track of your holdings. One of them is Bitcoin Motion. It links you with the top crypto brokers globally, and its partners offer a variety of trading tools to help you keep track of your money. You must keep track of how much of your profit you are making and which coins are rising in value. This strategy allows you to determine whether you wish to keep crypto or sell it.
Take the Gains- Your Crypto Investment
Naturally, when you invest, you must take earnings. It depends on what you want to achieve (short-term, medium-term or long-term). You can sell it as long as you believe your profit is substantial. Others do not take advantage of the profit right away, so they cannot maximize it.
But there is a strategy that works, especially in the bull market territory. Let us imagine you put 250 USD into a coin, and your investment has grown to 2,500 dollars. That is approximately a tenfold increase in profit. During a bull market, all you have to do is sell 20% of it (500 USD) and keep the other 2,000 USD, or 80%. Cryptocurrency gains of this magnitude are natural. To decide whether you are in a bull or bear market, make sure you understand the market cycle.
