Best Long-Term Crypto Investments

Cryptocurrency Investment Strategy

Warren Buffett said “Be fearful when others are greedy, and greedy when others are fearful”. Contrarian investing happens when investors purposefully go against current market trends by buying when most investors are selling, or the opposite. They force investors to define their goals and risk tolerance, as well as commit to a plan for building their wealth. Since Bitcoin was the largest and most popular cryptocurrency, everything else was defined in relation to it. So, whatever was not Bitcoin was lumped into a catch-all category called altcoins.

That means the supply could become constrained in the future, which will drive the price higher. As a beginning cryptocurrency investor, you shouldn’t try to find a diamond in the rough. You should get your feet wet with more established cryptocurrencies that have built-out networks to support them.

Step 1: Choose what cryptocurrency to invest in

You don’t have to keep track of your own private keys; all the information is right there when you log in. Our partners cannot pay us to guarantee favorable reviews of their products or services. You Cryptocurrency Investment Strategy can invest in Bitcoin or another cryptocurrency without spending much money. Using the Coinbase platform, for example, you can buy cryptocurrency with as little as two units of your local currency.

Cryptocurrency Investment Strategy

And as discussed above, all investing carries the risk that you could lose money. It’s difficult to say which coins will be the most successful as the crypto ecosystem is new and many cryptocurrencies are young. Even though these coins are among the largest ones, they still have risk. For example, following strong gains in 2021, the value of most cryptocurrencies fell dramatically in 2022.

Introducing NEAR Protocol: A Promising Opportunity in the Blockchain Space

Holding is common for those who invested early in different projects and it is a strategy that makes a lot of sense in the Swissborg ecosystem. Now that we’ve covered why investing strategies are important in crypto, let’s look at some examples of common investing strategies. If you’re looking to buy Bitcoin, pay particular attention to the fees that you’re paying.

  • NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.
  • Apps from companies like Coinbase and Robinhood make it very easy to buy and hold cryptocurrency.
  • You will need to revise and tweak your strategy at one time or another.
  • Factors such as partnerships, use cases, community engagement, and market demand could also influence prices.
  • Or you can try to find overvalued assets that are likely to decrease in value.
  • Each time it happens, they can make small profits that add up over time.
  • The strategy also probably won’t involve monitoring the performance of the portfolio frequently – only once in a while.
Leave a reply

Your email address will not be published. Required fields are marked *