We have become accustomed to stability and security. The realities of the last two years of observation that the cozy familiar world can change not only aside. Investments are not only a way to improve your financial situation and quality of life, sometimes the very possibility of survival directly depends on them.
Cryptocurrencies are a fundamentally new class of assets. In the success story of crypto investors, they excite the imagination and stir up interest in digital money. In addition to the ability to make super profits, cryptocurrencies have other advantages over more familiar assets.
- Low market entry threshold. You don’t have to invest big money right away. You can start with a few dollars and track the purchase of cryptocurrencies, collecting it to your wallet.
- Ease of purchase. You definitely will not be able to sign a whole stack of documents and communicate with intermediaries for a long time – you can buy coins in a few clicks.
- Minimum additional costs. The acquisition of conservative assets almost always involves intermediaries. Each of them charges a fee for their services.
- Anonymity. Today, there are quite a lot of turnovers for buying cryptocurrency without disclosing confidential data.
Ways to invest in cryptocurrency
Investments can be direct and indirect, short-term and predictive. Until recently, the most important “buy and hold” strategy used the largest value. In a falling market, it does not look like a very bright idea, and many investors began to sell assets in the hope of losing the harvest.
Trading is a short-term investment. In fact, this is speculation in cryptocurrency and its derivatives. The trader repeats short and medium-term cases and earns on the exchange rate difference.
The main disadvantage of trading is the rather large time spent on analyzing the observation situation, Bitcoin SV price, and opening the meeting. Reduce the time spent on returning pending orders, in particular, stop loss and take profit. They are aimed at minimizing costs and fixing the arrival at a given price. The function of access orders on traditional crypto exchanges.
There are also advantages to trading:
- Opportunity to start with a small amount. On some exchanges, deposits are 1-5 dollars. such an amount is clearly not enough for a tangible profit, but not enough to assess the possible strength.
- You do not need to freeze funds for years and years. A trader can very quickly exit the cash with a profit or a holding loss if something goes wrong.
- Trading makes it possible to earn on any trend: ascending, descending or sideways.
- Fast result. The trader works on the basis of time transitions, which makes it possible to quickly assess the correctness of the chosen strategy and, if necessary, correct it.
- Profit maximization. The income of an experienced trader is achieved with a high income of the investor, but much faster. However, it is worth remembering that the shadow side of profit maximization is a high risk of losing everyone. And this happens to beginners more often than they think they are.
- Trading requires a reliable and secure trading platform. To simplify the choice of a crypto exchange, you can use the CoinMarketCap data, which contains the characteristics of several hundred discovered cryptocurrency exchanges.
Long term investment
Long-term investors buy digital assets and hold them for years in anticipation of a rise in price. Fundamentally, cryptocurrencies and most experiences take place in the opinion that this possibility persists. However, how the price of Bitcoin or other coins will rise and when it will be is impossible to predict or calculate.
In the case of long-term investments, money becomes much more difficult. Accordingly, it will be quite difficult for you to calm down during periods of falling. Calculations and the fact that for long-term investment costs significantly larger amounts than for trading.
Invest the right way
You do not have to limit yourself to only the type of investment and invest everything in one coin. On the contrary, well-thought-out diversification of the portfolio of assets and return on investment ultimately produces the best results.
So, in order
- Do you need a strategy
Each investor develops unique opportunities, opportunities and character traits. A strategy is needed to minimize losses.
- Manage risk
Do not invest more in cryptocurrency than you are willing to lose, and even more so – never win for the purposes of borrowed money. Set a maximum allowable loss level and do not neglect stop losses.
- Diversify your portfolio
Don’t invest in cryptocurrencies. For reasons of private financial security, it is better to choose about 10% of the total investment for the share of investments. For experienced traders who prefer an aggressive trading style, the value may be higher.