2021 has certainly been a big year for the crypto space, but what to expect next? The most popular cryptocurrency, Bitcoin, reached an unprecedentedly high price in April and October. This resulted in people’s increased interest in the digital market worldwide.
If you also want to improve your profits with digital currencies, here are the topmost effective strategies to help you get started.
Invest as Much as You Can Afford to Lose
Remember when you made your first investment in the traditional financial market? You need to practice the same caution when investing in the digital market (or even a little more!). No matter how promising the project may seem, try to start small and improve your understanding of the system. Continue learning effective strategies to excel in the market.
The reason is that the crypto market is extremely volatile and dynamic. Trading in the crypto world never stops. So, you may feel the need to stay at the top of the game by consistently monitoring the prices in the crypto market. This may lead to constant stress and may even negatively affect your ability to make effective trading decisions.
The best investment strategy is to define your monthly investment budget for cryptocurrencies and try not to cross it at any given time.
Bitcoin is the King
Bitcoin should ALWAYS be your priority. It’s presently the most reliable and promising cryptocurrency in the digital market.
New data reveals that 65% of the 55 crypto hedge funds expect BTC to trade $50,000 and $100,000 by December 31, 2021.
Regardless of what you hear from the economists and other regulators in the digital market, always remember that every altcoin you may find in the crypto world is a direct competitor of bitcoin. From EOS and Bitcoin Cash to Ripple and Ethereum, they're all aimed at replacing Bitcoin as the most dominant cryptocurrency.
This doesn’t mean that you can’t invest in other projects. While it's highly encouraged that you prioritize BTC, diversifying your portfolio is equally important. If you’re willing to take risks, start with a 70:30 ratio. This means 70% of your investment will be dedicated to BTC, while you can invest the remaining 30% to altcoins to diversify your portfolio.
If you’re interested in learning more about crypto and making money online, have a look at the resources and information prepared by Urban Crypto. They aim to help people enter the crypto market to increase their business profitability. At Urban Crypto, you can find a beginners' guide for Coinbase, Binance, Cryptocurrency. If you’re looking for a way to make money with cryptocurrency, want to know about the best wallets and exchanges to invest in, you can find it on their platform.