These are the coins you should be buying, trading, or simply holding
The Coin Choices for 2022–2024
BTC, ETH, LTC, BNB, ADA, SOL, XRP, NEM, and MATIC are all solid projects with strong fundamentals and have a bullish long-term forecast.
By 2030, Ethereum will reach $19,000. Bitcoin is predicted to reach $200k. Cardano may surpass $1k. Solana is predicted to reach $5000 by 2030 and XRP, $50.
Cryptocurrencies are highly volatile, and prices could fluctuate anytime. Holders can secure profits when the costs of cryptocurrency markets are going up. But what about when in a downtrend?
Even when the market is in an overall downtrend, there are still several ways to emerge profitable one of them is Trading. Another way to emerge profitable is dollar-cost averaging or DCA, for short.
First, let’s take a look at trading as it allows for profits in an uptrend and downtrend market. If you trade responsibly and develop a robust risk management mechanism, you can profit from your trading activities.
Trading
If you want to make money trading coins, then you need your trading strategy to be resilient to the price fluctuations of cryptocurrencies.
The best way to ensure that your trading strategy remains resilient is to practice trade management.
What is trade management?
It is an integral part of being in business today. You need to have a trade management system in place to manage your trading activities.
A skilled trade manager can help you avoid the expenses of wild fluctuations in pricing while achieving business goals with limited risk.
How do I implement trade management?
There are several steps you should follow when designing your trade management system.
1. Plan the outlay of resources.
2. Plan the direction of the project.
3. Plan the goals you wish to achieve with the project.
You'll soon learn that creating a plan is only the beginning. In order to create a plan that is effective, you must consider many other factors.
Who will be on the other side of my trade?
Most crypto exchanges allow traders to invest in one or several coins. Each trader is assigned a broker who acts as the go-between for traders and the exchange.
The crypto market is relatively new, and as such, there are few established best practices for trading. Most crypto exchanges are run by individuals or small teams.
The lack of institutional trading expertise presents a challenge to those looking to invest in or trade cryptocurrencies. Most crypto exchanges have the infrastructure necessary to support large-scale trading.
How to trade successfully
The guide below will help you to develop a trade management system that will enable you to master the crypto market.
Step 1. Plan the Outlay of Resources
In order to succeed in the long term, you need to plan for how much financial resources you will need to sustain your success.
A good rule of thumb is to plan for six months worth of living expenses in dollars.
Imagine what you will do with the money if you ever lose your job. Would you be able to cover your bills if you got sick?
Or, if you were injured, would you have money to pay for medical bills and perhaps a month of hotel rooms if you got stitches?
Step 2. Exchanging into and out of Crypto Currencies is tricky
There are several crypto exchanges that allow traders to trade one or several of their supported crypto coins for dollars or other fiat currencies.
However, making the switch from one crypto coin to another can be complicated.
Each exchange has its own coin, and some of them allow traders to combine multiple inputs into a single order. This means you can’t simply add Bitcoin to your order book; instead, you have to figure out how to swap one of your existing coins for Bitcoin.
There are thankfully not many barriers between crypto exchanges, so you can often make the switch by directly trading one crypto coin for another.
For example, you can trade NEM for Litecoin by using a trading platform such as Binance.
STEP 3. Create an investment plan
Now, you can create an investment plan. An investment plan is a written document that describes how you intend to invest your money.
It's important to create an investment plan because it allows you to track your progress and motivate you to reach your financial goals.
You can base your investment plan on one of three things:
- Your previous trading experience — How much do you currently own of which crypto coins? How much would you like to own in the future?
- Your current financial situation — Are you debt-free? If not, how will you pay for the purchase of each crypto coin? Are you planning to buy a new car soon? If so, how will you pay for that?
- Your goals — What do you want to accomplish with the money you earn from crypto coins?
Once you're done with your investment plan, make sure it's easy to follow. It's also important to share your plan with anyone who will be able to help you with it. This includes your family, your friends, and your co-workers.
Benefits of investing in crypto coins
There are many benefits to investing in crypto coins. For example, you can buy NEM for $0.03 per coin at the moment. This means that you can potentially gain $3.9 billion over the course of decades.
Dollar-Cost Averaging
Now let’s look at how to emerge profitable is dollar-cost averaging or DCA, for short.
The Importance of Investment Rewards
No matter how you want to buy your crypto coins, the key point is that you should do so for less than it costs to generate them. In other words, you should dollar-cost average or DCA.
When you buy a few crypto coins at a time, you can take the average price of one coin and multiply it by the number of coins you plan to buy. So, for example, if you plan to buy five NEM coins, you can expense $0.0015 per coin. This means that you will have to generate an average of $0.015 per minute over the course of decades to make money.
Dollar-Cost Averaging Schedules
There are five different types of dollar-cost averaging schedules. These include:
Fixed Dollar-Cost Averaging
This is quite simple. You determine how much you want to invest and how often you want to buy coins or shares. Then, you divide the amount of money by the average cost of one coin or share. Example: Jack wants to invest $400 in Bitcoin every week. He decides to use the fixed dollar-cost averaging schedule. Thus, he divides $400 by $6=$80. Hence, he will buy $80 Bitcoin satoshi every week.
Weighted Dollar-Cost Averaging
In this type of schedule, you take the amount of money that you want to invest and multiply it by a percentage. Then, you round the result to find out how many coins or shares to buy. Example: Sonia wants to invest $500 at one time in Bitcoin. She decides to use the weighted dollar-cost averaging schedule. Thus, she takes $500 and multiplies it by 60%, which equals $300. Rounding gives her a number of 300 satoshis. Hence, she will buy 300 Bitcoin satoshi in one go. She will do this every time that she uses this schedule.
Rolling Dollar-Cost Averaging
In this type of schedule, you keep a list of all your purchase dates and the corresponding prices of one Bitcoin. Then, you add the latest price to the list and divide it by the sum of all the prices on the list so far. This will give you the price at which you should buy coins or shares in the next purchase.
Variable Weighted Dollar-Cost Averaging
This is similar to weighted dollar-cost averaging, except that you apply a different coefficient to the amount of money that you want to invest. Example: Let’s see what happens when Jack uses the variable weighted dollar-cost averaging schedule. Thus, he divides $400 by the average price of one Bitcoin, which gives him the number of Bitcoin units worth $400. This means that he will be buying 4 bitcoins every time that he uses this schedule.
Liftoff Dollar-Cost Averaging
This is similar to the weighted dollar-cost averaging, except that you increase the amount that you invest at one time as the price of a Bitcoin rises. Thus, when the price rises to a certain point, you will stop buying.
Example: Let’s see what happens when Sara uses the liftoff dollar-cost averaging schedule. Thus, she takes $500 and multiplies it by 75%, which equals 375. Rounding gives her a number of 375 Bitcoin satoshis. Hence, she will buy 375 Bitcoin satoshis in one go. She will do this every time that she uses this schedule and the price of a Bitcoin rises.
Conclusion
Your goals — What do you want to accomplish with the money you earn from crypto coins?
Whether you trade, DCA, or simply hold, the point and case are the same.
Do it with diligence.
Trust in the trends.
As we are moving into a new and more advanced digital era, the fact remains that digital currencies will be around far longer than anyone reading this article right now.
BTC, ETH, LTC, BNB, ADA, SOL, XRP, NEM, and MATIC are all solid projects with strong fundamentals and have a bullish long-term forecast.
I sincerely believe you cannot go wrong with this mix of crypto and I feel it’s as diversified as it needs to be.
It’s pretty simple...
