Hey..
I know that everyone has different investment strategies such as day trading, hodl, buying icos and so forth...
I am selecting the best icos of every month and then I am investing into 2-3 icos for every month, but I have heard many people complaining abouy buying icos because price tend to get lower when hitting exchange for the first time..
And sometimes I am simply frustrated when hearing shit tons of people saying that buying icos is stupid.. but I guess its not so time consuming as day trading..
what is your strategy??? and what are pros and cons of your strategy??
This is my strategy:- Premined or not?Premined coins are too suspicious. The devs take an initial big slice for themselves always justifying that with some philosophical rhetoric but there are many past examples of total scam coins using this scheme.
- ICO or no ICO?I don't like ICOs, I prefer to invest in an already ongoing project with given proof of stability and endurance. I'm not saying all ICOs are scams, but same of them are for sure!
- How old is the coin?In my book, if a coin is still being actively traded after 3/4 years of existence, this has to mean something; there is a faithful community behind it.
- Is it still being actively developed?Following the previous point, if after 3/4 years the coin still has a dev team committed to it with real plans for the future, then it has a real project!
- Does it have any real use besides pure pump and dump speculation?Is the coin being used for any kind of purchases? If not, are there any plans for it? Otherwise, it will only be a play toy for trading.
- Does it have an active and large community?How large is the community? Is it still active or everybody left a long time ago?
- Is it PoW of PoS?Proof of Work is a dead end, the power consumption is obscene. Not viable for the average domestic crypto enthusiast. Proof of Stake can be done with a Rasberry Pi
- Fully functioning wallet?Some coins have terrible wallets, unstable, not user friendly. This is a key factor, the software has to be in line with the state of the art crypto developments.
- What is the current marketcap?A coin already above 100mil might not be the best bet if you can find a good one below 100 mil with a good growth perspective.
- What is the current/total coin supply?Scarcity might prove to be an added value in the long run if you are planning to hold a coin and leave it for your kids!
Long term investments:I currently have a few long term investments and they all share a set of fundamental characteristics:
- PoS assetsI truly believe PoW is a dead end due to the obscene power consumption. PoS assets require minimal resources, like a Raspberry PI.
PoS v3 are fantastic and I own a few masternodes.
- Old assetsI don't trust the ICO model, it's prone to all kinds of schemes. Some ICOs might be genuine but it's almost impossible to distinguish them from the plethora of scams.
I invest in well established projects, still being actively developed after 3 or 4 year of existence.
- Realistic figuresMany new projects promise crazy returns like ~70k% ROI/year. It might work for a couple weeks but the inflation will kill all these scams after a short period of time.
For the long run, it's better to choose reasonable figures like ~20%/year or even less.
Risk management:
1 - Study
2 - Don't fall for the latest ultimate coin/token. It's probably another scam...
3 - Study a bit more
4 - Never invest what you can't afford to lose.
5 - Keep studiyng
6 - Never borrow to invest in crypto
7 - Choose wisely and start with small investments
8 - Don't sell in panic. Don't buy in euphoria.
9 - Relax
10 - Enjoy