Greetings! I am planning to invest $5,000 in cryptocurrency but I do not know how to invest. And where should I invest? - in Bitcoin, in alternate cryptocurrency, or in ICO? I’m asking for an investment strategy for professional traders or investors out there.
I have 5 investment strategies even if you are newbie.
1. Have an understanding of the concept of Cryptocurrency.
2. Often see the Stock Market.
3. Invest more than one coin.
4. Start with small quantities and make measurable improvements.
5. Reallocate your investment.
Disappointed with the above strategies? Wait a minute read and take a good look at the explanation below.
- First, recognize the world of Cryptocurrency:
It is important to know and fully understand the knowledge of Cryptocurrency itself. Always keep in mind that you should never invest money in something you do not understand and recognize. We are sure, many of you are always expecting things instantly without doing things as hard as learning first, and that is the biggest reason why so many fraud cases are busy reported. Leave that habit right now, something big definitely needs a complicated process then be patient.
Do not be a FOMO (Fear of Missing Out) troop, who join in droves jumping for less with the reason "most people do it too". Be smart investors who do research and reproduce information first before doing a sell / buy.
Therefore, all you have to do is study the space for Cryptocurrency. There are several important points that you should digest before starting the investment, as follows:
* What is Cryptocurrency?
* What is Blockchain Technology?
* What is Bitcoin?
* What are the popular types or brands of Cryptocurrency besides Bitcoin?
* What are coin market caps?
* How to start trading on the exchange?
* Where can you exchange exchange of crypto and fiat currency assets?
-Strategy Second, Visit the Stock Market Periodically:
How does that mean? Spying on the stock market is one boring thing, because seeing price movements but not owning assets is one of the most exhausting things. However, you will get valuable lessons about which coins are popular and trend in the Cryptocurrency exchange market.
The important things you should look for are:
* What crypto currency is the most searched for? you can see on the volume of each coin.
* What is the value of each crypto currency?
* Which crypto currency has the highest market capitalization?
* Is a coin worth defending for a long-term investment or only feasible for pumping or short-term?
- The next strategy is to invest more than one coin:
It is not recommended if you invest only one Cryptocurrency. Trader professionals usually purchase a variety of crypto assets and create a portfolio of lists of their assets. What for? Of course to minimize the risk of losses that may occur. For example when you lose in coin A, then you will quickly make stop loss and seek profit in the assets of coin B and so on.
Therefore, buy at least 2 crypto currencies and do the observations as often as possible in the stock market and select the currency you believe most will be profitable.
- Fourth Strategy, Start From Small and Make Measurable Improvement:
It says, "Be on the small matter first, then you will be given a great thing." The words are very aplicable for the new investment or trading activity you are about to start. How do you solve complicated investment problems if you have not been able to solve small and simple ones? Of course by knowing the simplest things first and continue to scale up.
With a small amount, you will more often observe and feel things that are common in the Stock Market.
- Lastly, Investment Reallocation:
If you have applied steps 1-4 above means you have become one of the investors and already accustomed in this crypto universe, you can reallocate your investment amount in accordance with the development of the digital currency market.
There is also an activity called arbitrage, which is buying an asset in a market and moving it in another market if the price difference is significant. But before doing so these things you need to pay attention also to the amount of transaction costs, taker fees and maker, the length of the transaction process and other information the market. If not paid attention will make you lose.
Last but not least, start investing, congratulations on your role in the world of exchanges, being the sitting duck transformed into the running pig until you can become the hunting fox in this investment world.
