Short term and long term investments

[stasiulman]

In order to choose a suitable strategy for yourself, you need to understand that:

Short-term is an investment in the cryptocurrency for a period of 1 to 60 days;

Long-term investment in cryptocurrency is a term from 60 to 365 days and more;

Criteria that should be paid attention in short-term investments:

1. The first is an upward trend. In order to determine the trend, you need to open a schedule of the selected cryptocurrency, for example on coinmarketcap and look how it's move. If the uptrend is upward. Down - the trend is downward. The price is stable - flat. Trading is always recommended on an uptrend because the risk of a price drop decreases.

2. Capitalization is the second thing to pay attention. Again this info is posted on coinmarketcap.com


3. Exchanges, where chosen crypto is trading. Again look it on coinmarketcap.com. If chosen coin is traded on the bittrex, poloniex, cryptopia, kraken, livecoin and yobit exchanges, this will be a big plus.


4. Trading volume per day. The higher volume, the higher your chance to buy cheaper and sell more expensively in a short time.


5. Coin price. For short time better don't invest in expensive coins, because it is unlikely that an expensive coin can grow quickly.

6. Volatility. Exchange rate fluctuation, if the chart for a short period of time shows a sharp rise and fall, this is a good indicator for short-term investment.

7. Opt price calculation. In order to calculate the optimal purchase price for a certain cryptocurrency, you need to know the following values (look it in coinmarketcap.com, except the Last price):

Max price - the maximum price of a cryptocurrency for a period 3-6 months.

Min price - the minimum price of the cryptocurrency for the period 3-6 months.

Last price - the last price of the currency on the selected exchange;

Average - the arithmetic mean of the Min price and Max price.

Average = (Max price + Min price) / 2;

So, in order to calculate the optimal purchase price, we need:

Opt = (Average + Last price) / 2.
In this case, Opt is the optimal price for entering the cryptocurrency exchange.

Attention! The calculation formula Opt is valid only if its result is less than the last price on the exchange (Last price).

What is the capitalization of the crypto currency?
Capitalization of each crypto currency is calculated as follows:

Price * Number of coins in circulation = Capitalization.


Criteria for longterm currency trading:

1. Mention of selected cryptocurrency by authoritative sources like wikipedia, bitcointalk. It is not important to mention here, but the information that can talk about the prospect, for example:

- author, founder, team (its authority, early projects);

- the year of foundation. If the coin has long been on the market and is growing all the time, this is a good indicator.
- implementation, it is important to pay attention to a partnership with large companies, which can lead to growth.

- Feedback. This applies to advanced forums like bitcointalk.org where you can read reviews of advanced users about this cryptocurrency.

- relevance, check the latest activity on the bitcointalk.org forum for the chosen crypto.

2. Technology and idea. A unique idea that has no analogs, or technology that has supplemented or surpassed its predecessors.

3. Site, social networks, google:

- approach to building a site (whether it reveals the meaning of the cryptocurrency, design, gravity of the approach, traffic);

- social networks (whether there is activity in social networks - posts, likes, comments);

- google (enter the name of the selected currency in google and see the activity for the last week);

4. News. Check whether there are promising news on this cryptocurrency, the frequency of their updates.

5. Pump. Check the chart for the presence of rapid price increases - this is a sign of rapid infusions of large sums of money.

6. Seasonality. Usually, it was spring. But this spring wasn't stable, so be careful with this point.

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[joelsamuya]

Oh thank you for posting this useful ideas, and yes we need to understand between the short term and long term investment before entering in it., so that we can manage our strategy on what is suitable specially when the market like now, we've experienced a major red market., which means you can buy a volume and then sell when the market recovers, this is just a matter of trading strategy.

I would recommend this post to my facebook friends, as they are keep on asking me, on what strategy did i used.

Have a great day

[kurlllviss77]

Thank you for the information. I already knew something of it, heard something for the first time and it is very useful for me. I will try to use it in practice.

[5hoop5]

Short term and long term investments are good in their own way. My opinion, of course, I am for long term investment. They have more future for development. But also short term, also have a number of advantages.

[tailor.and]

Thanks you so much for all these information. An useful post which will help a lot of newbies. Besides, investors should alsor remember that crypto currency is not for short term investment. It is basically for long term investment.

[earnetheasy]

These two types of investments are based on different strategies. Short-term investment generally follows a less than one year. You will buy and sell the investment when the price is high but in long term you will have to follow different strategy and need to be calm and poised. You need to be very careful.

[huanglui]

I think that psychological factor is the most important when you take a decision to choose a type of trading

[drixty]

If I will to choose between short term and long term I will still do the long term. I really do believe in the potential of this coins to be use for everyday purposes and has great plans for the future.

[Tipstar]

For long term, I go with the coins I believe in. Store them in a safe offline wallet.
For short term, I look for upcoming events for the coins. A mainnet launch, masternode implementation, listing on exchange, forks, swaps, issues, etc. are easy to analyze for price change. Buying after getting stable after a hike is also a good way to safeguard investment.

[suprex333]

We plunge into the internet world is a long-term investment, we can take all the learning in the internet world let alone the world of blockchain that provides benefits without capital, this is enough to provide great potential for the future. Short-term investment is a momentary investment without thinking about the future and now, so it is only short and will quickly run out and pass away. Learn carefully coins that are appropriate for the short and long term.

[LbtalkL]

This is informative thank you, I will try to look for a coin and I will base on this criteria. Does long term holding needs some luck too?
I saw some great projects and never got profit on holding it. Maybe I will hold it for another year and sell when the right time comes.
I think on long term investment we need to store it on a wallet not on exchanges.

[nickmiller]

Both the short term and the long term investments are driven on two different strategies. One runs only on the purchase of coins and selling them off when the prices rise. The other in for a longer a period of time, such as holding on to the coins even when the market is in a dip; this requires expertise and a good strategy.

[worldtraveller505]

From my perspective i think long term investment is the best option. Because you get much time for take the correct decision and you can also observe the market situation. Its help you take the correct decision.

[JCLee]

Short-term or long-term investments depend on the individual's investment needs. If you are new to the market and do not have much experience, long-term investments should be made, as you only need to invest in the cryptos top of the market then hold for at least a year. Short-term investment is that you need to experience forex rates as well as select potential cryptos to invest. Usually, short-term investment time is only 60 days only.

[chokomenia]

This is an interesting post for short term and long term investment in cryptos, I really learnt some few things from the post, thanks for sharing with the community and I look forward to read of your post.

[btchunter786]

Thanks a lot for this most important information. It will help us a lot. Specially I really want to know about it and you just posted here. Again thanks a lot.