Cryptocurrencies are increasingly becoming more popular today. In fact, new investors are looking for the best cryptocurrency they can invest in. So, if you’ve also decided to try your luck in this growing market, you need to learn some important investment strategies. This guide will help you understand the best ways to find the right cryptocurrency investment for 2018.
Why Invest in Cryptocurrency?
Perhaps when you first heard about cryptocurrencies, your initial thought was “it’s too good to be true”. Seeing young people online get super rich because of this new trend is really unbelievable. But if you do your own research and see people raking in up to $300,000 from their investments, you’re more inclined to believe it’s true. To make it work for you, it’s about time you learned more about cryptocurrency investment strategies for this year.
With the advent of bitcoins and its rapid growth, investors started to pour their money into cryptocurrencies. Together with the blockchain projects, cryptocurrencies has achieved significant profits. However, dramatic declines in cryptocurrency were also seen in the last few years.
Today, other people seeking to emulate their friends’ returns are investing in the market. There are hundreds of altcoins (alternate cryptocurrencies) available to choose from. Also, the initial coin offering (ICO) provides opportunities to multiply cryptocurrency investments. However, these are highly risky to invest your money in.
Finding the ICOs
The first thing you need to do when finding the ICOs is to determine which offerings are available. You can use websites that list upcoming public sales or pre-sales of these coins. Developers also list information about buy-in price, team profile, and soft cap on specific websites. Savvy investors use websites like these when planning their entry, preparing their money to be invested, and doing research.
The growing popularity of initial coin offerings make it the best time to invest in ico cryptocurrencies. Investors can expect to double their investments every month. The incredible growth proves that the market is a safe place to for your investment.
Evaluating the Opportunity
Rare ICOs draw the attention of many investors and raise the cryptocurrency required. However, with these complex requisites, not everyone will succeed when investing in cryptocurrencies. Therefore, learning how the market behaves is a great way to multiple your investments.
There are so many ways to utilize blockchain, and new ways are popping up each day. Presently, the market isn’t impressed with ICOs that only recreate decentralized currency model. When bitcoin was first created, it was a truly revolutionary idea at the time. But now, newer cryptocurrencies share the functionality of bitcoins.
TIP: Look for coins that put new spin to old concepts or accomplishes something ambitious. If you find regurgitated or obscure language on a website, get rid of it right away because it’s a scam.
Smart contracts managing the distribution of coins have specific rules. For instance, they require a certain amount to be made, when, to whom, and if unsold coins should be destroyed or not. Normally, when the supply offers insufficient coins, the more they will bring into the market. Search for information about how many coins should be sold during the ICOs time window, closed pre-sale, and more.
When it comes to choosing the best exchange plans, you also need to consider the right places to get it from. Cryptocurrencies listed on exchange sites might not be a good idea to invest in. However, if there are plans announced in Kraken, Bittrex, and Coinbase that they will list coins that are in ICO phase, consider these as safe bets.
Buying the Dips
Buy the Dips is a fundamental investment strategy in cryptocurrency. It means averaging in while the price goes down or buying after the prices settle. Also, this strategy is mainly used in a stagnant market or bull market. It’s similar to a bear market seeing a decline in prices – like a giant dip which hasn’t stopped dipping.
Put differently, investors would do one or both of the strategies below:
- Buy incrementally while the prices go down, resulting to average positions while deciding to purchase more while the prices decrease further.
- Wait until prices settle, and maybe even present signs of going up, then buying within this particular period.
- Set your buy orders at low rates unlike the current rates, and let it fill. If you set buys prior to historic support levels, huge buy walls as well as psychological levels are excellent strategies to use. This is because the rates tend to make a quick leap off such levels.
Buying the dips is a good strategy, instead of just waiting for the prices to get higher. In other words, it aims to buy low and sell high for more profitable investments in cryptocurrencies.
Making Money from Cryptocurrency Investments
Thing is, you will only make money on your investments if you understand what makes them good investments. Knowing what makes a good investment is a great basic strategy before pouring your money in the market. This takes time to learn, however.
Point is, only a few cryptocurrencies will become great investments. A majority of the coins will eventually go obsolete. Bitcoin already showed this potential disappearance in the value of coins. Since no one knows exactly which ones are huge winners and epic fails, having your portfolio of these currencies is the most ideal investment strategy to make.
You don’t need to learn the technical details when it comes to the currencies. However, it’s important to read more about the currencies where you plan to invest your money. Making informed decisions is essential before making any choice. And this is the best way to figure out the best investments in cryptocurrency.
Litecoin, Ether, and Bitcoin are the major cryptocurrencies you can invest in today. Their prices change quickly that’s why it’s a must to understand how they work before making any investments. Remember, never put your money at risk if you can’t afford to lose. Don’t be lured by the current cryptocurrency hype without learning the strategies and tips provided in this guide.
So, are you ready to make an investment in cryptocurrency?