Manifold Your Returns through these Successful Strategies

Manifold Your Returns through these Successful Strategies

  • Author : john mark
  • Published : June 25, 2020

I wasn’t a fan of cryptocurrency until I decided to master the strategies of investing in digital assets. In January 2020, I set up my first digital wallet. And in February 2020, my first transaction reaffirmed the existing popularity of Bitcoin. The returns were charming! Truth be told, cryptocurrencies are a great investment.

There are more than 2200 cryptocurrencies but not many boast of mass adulation. Bitcoin is an exception and its popularity is intact. Ethereum is yet another cryptocurrency that’s in the good books of its patrons.

For a vast majority of amateur traders, trading begins with losses, because trading for them is similar to gambling. However, I was fortunate enough to follow a few strategies that helped me fine-tune risk management style and maximize returns.

Let’s dive into successful strategies:

 

Explore the Realm of Cryptocurrency

Do not join the fraternity of cryptocurrency traders without digesting all the information. Firstly, you have to understand how blockchain technology works and how cryptocurrency exchanges work. Acquaint yourself with different cryptocurrencies. When the emotions of investors and stakeholders run high, amateurs tend to throw caution to the wind and invest recklessly. This should be avoided. No matter what, Fundamental and Technical analysis should be done. There are no shortcuts.

Analyze

In fact, the best way to analyze is to shop around and spy. Till 2019, Bitcoin was all the rage. But professional traders and seasoned investors have confided several times that Ethereum would outperform Bitcoin and become the most favoured currency of the future.

ethereum

 

Keep an eye on price charts of popular cryptocurrencies like Ripple, Ethereum, Bitcoin, Monero, etc. Different institutions try to manipulate the supply and demand cycle to impact the market cap of currencies. Do not settle for the one with the highest market cap. Use your judgement.

Diversify

It’s no secret that the cryptocurrency world is volatile. In other words, values keep swinging. Miguel Cervantes, the author of Don Quixote once said, “Do not put all your eggs in one basket”. This expression holds true for cryptocurrencies.

Picture this scenario. You invest your hard-earned money in Ripple. Ripple collapses suddenly. Your investment journey is a crushing disappointment! Such nightmarish experiences can be avoided if you diversify your portfolio.

Always invest in at-least 3 different cryptocurrencies and maintain a well-balanced portfolio.

Learn Risk Management

Heard of HODL?
HODL stands of Hold on for Dear Life. This is a long-term investing strategy. Investors usually buy fundamentally strong currencies like Monero, Bitcoin and Ethereum, and hold them for a very long duration. They sell them once the currencies appreciate significantly.

profit loss risk

Quite a few professional investors engage in Cryptocurrency Arbitrage. Cryptocurrency Arbitrage is the practice of buying a cryptocurrency from one exchange at a lower price and subsequently selling it at a higher price on a different exchange.

Risk management is essentially about striking a balance between HODL and Cryptocurrency Arbitrage.

I implemented the aforesaid strategies and my returns shot up from $500 to $1950 in 2 months. To sum up, always buy low and sell high. Good Luck:)

 

Share this:

Connect with Us

Recent Post

Archive

You may also like :

Leave a Reply

Your email address will not be published. Required fields are marked *