The best cryptocurrency investment strategies
Traditional investors are trying to figure out how to incorporate these new-age technologies and assets into their active portfolio, even traders have dived into the world of cryptocurrency investment as it is a great source of generating additional income for themselves.
While the recent slump at the start of the year disappointed many investors, it also created buying opportunities for new investors to dip their hands into the market.Bear and Bull markets are a part of each asset class and therefore if you compare some assets and coins like Bitcoin they have overall outperformed the stock market too, making it an extremely lucrative cryptocurrency investment.
However attractive these cryptocurrency investments seem, people should not forget that everything that can give returns can generate losses too, so these assets also have a unique risk attached to them which people should be aware of.
Just like any other investment class, investors should have an investment strategy that they should follow and fall back on in difficult times. Just like having strategies in the stock market or with bonds.These investment strategies can help you get ahead in the game and keep yourself secure while entering the crypto market.
Unorthodox ways how to maximize money-making in the cryptocurrency market
- Having a wide mix of storage options for your crypto
There are two types of wallets essentially hot and cold wallets, hot wallets are also known as online wallets that allow you to store your holdings online in an online wallet, there are a lot of hot wallets and usually hot wallets are used by people who need some liquidity and ease of access to their crypto as well as to trade and make or receive payments.
Cold wallets are offline wallets that resemble a hard drive and all your holdings are stored on that cold wallet.
It is usually advised that 80% of your long-term holdings should be on a cold wallet and the rest of it should be on a hot wallet in case you want to trade or get easy access and instant liquidity to your cryptocurrency investments.
One of the top upcoming hot wallets is the FAN wallet.
It is made by FANSPEL, one of the best cryptocurrency fantasy sports platforms that allow you to stake its native token FAN for an amazing APY of 18%.
It is one of the safest platforms for your cryptocurrency investment needs.
- Prioritize the liquidity
- Harness Volatility
Although this volatility is stressful for some people it is a great boon for swing traders that make quick trades and cash in on the swings of the price of these digital assets.
So always assess the volatility and invest smartly.
- Invest according to your pockets and always take your profits when due