What is the single best cryptocurrency investment strategy that assures safety and maximum potential returns?
Before we go ahead and talk about this strategy, let me warn you that; if you’re not willing to hold onto your investment purchases for up to five (5) years or more please DO NOT regard yourself as an “investor”. You’re more likely a speculator and this strategy may not be what you want.
First thing first, why are you thinking of investing in cryptocurrency? The answer to this question will determine the single best cryptocurrency investment strategy that works just great for you.
There are several possible reasons why you are thinking of investing in cryptocurrency:
- You understand and appreciate the technology and want to take an active position in its development.
- Everyone is talking about it so you want to try it and see.
- You have seen how cryptocurrency prices suddenly go so high and you want to cash-in.
- Your finance is a mess and you’re looking for a quick fix; and you think crypto is the answer.
- You just have to invest in something –anything; so you too can carry the title of INVESTOR.
Whatever your motivation is; the single best cryptocurrency investment strategy is this:
- BUY and HODL for up to 5 or more years.
“Our favorite holding period is forever.” ~Warren Buffet
It’s simple but the implementation is hard.
More importantly is to know what, when and how to buy and hold; and these requires you to perform your do some careful research and deep analysis to identify coins worth committing your money to, over that long period; you don’t want to begin answering funny questions from your kids 5 years down the line.
There’re a few fast factors you must consider in determining which cryptocurrency is worth investing in for the long term.
- Buy a coin with a solid use case and a good technology.
- Buy a coin with a known and competent team like the Basic Attention Token (BAT), Ethereum and of course, big brother BITCOIN.
- There sure are other factors but they all depend on the two above.
"We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful." ~Warren Buffet
Buy low sell high –that’s how this game is played.
Once you have identified a good coin to buy, the next most important thing is TIMING.
The goal is for you to make as much money as possible from this investment and that’s not going to happen if you buy when the coin is at an All Time High (ATH).
Therefore, get in when the market is at its lowest. When you hear bitcoin is dying or is dead –that’s the time to buy! And that goes for any other good coin you are investing in.
More so, as time goes by and you have some more money to invest, ensure to always buy at dips –the time when prices are at their lowest; thus effectively dollar-cost-averaging your investment.
Follow the above steps for each and every cryptocurrency you have identified and decided to invest in; and you’re well on your way to making 100X to 5000X return on investment (ROI) a in just a few years’ time.
Conclusion
On a final note; implementing this strategy on a shitcoin will make you lose much more money than you bargained for. You need to thorough research and find good project worth going this long with. Don’t get greedy or fearful –objectively analyze and evaluate each coin for long term viability and go in when you’re fully satisfied regardless what is happening to the price at the moment.
There certainly are other good investing strategies too, if the long term holding idea is not your thing. You can consider staking for reasonable staking rewards, crypto lending and/or joining a mining pool to get a share of the actions and profit.
However, long-term HODLing of a good asset is known to produce the best and highest returns on the average.
Follow on twitter for daily crypto trading and investing tips! @Crypto_Sorted
