With $919 billion worth of cryptocurrency in circulation, getting a piece of the market is well worth the effort. However, it isn’t as easy as other investments; it takes some strategizing.
If you are new to digital currency then there are a few things to know when getting started to help you make the best decision.
Read on for the top 3 crypto investment strategies that professional traders use.
1. Long-term Holding
One of the easiest investing strategies is to buy your crypto and hold onto it for an extended period. This practice is useful for anyone who wants to make some profit with cryptocurrency but does not want to invest a lot of time in monitoring the market.
To proceed with long-term investment strategies you first need to analyze the market. This is because you want to buy your digital asset when the price is low or during a bear market.
First, look up the coin you want to buy and its historical data. For example, see the matic price and expand the price chart to view its all-time price history. This will show you the highs and lows of the coin to determine where it currently stands on the market.
Then, buy the coin if you see that the price is at a low point. Check back periodically to see if and when the price rises to determine when to sell for a profit.
2. Swing Trading
The next crypto investment strategy is more advanced as you need to understand market trends. This requires you to notice when there is a major price turn that is likely to last for several days, weeks, or months, in some cases.
Swing trading is a higher-risk investment since the market is volatile during these periods. Prices could drop suddenly so you will need to consistently look at the trend to determine when to sell.
Buying during this period is also tricky since a low price could be the high for the month. Therefore, you need to use short-term technical analysis to decide when to buy. However, this could be the best investment strategy for making large profits since prices could shoot up within days for a quick return.
3. Day Trading
Day trading is a strategy for investing that consumes most of your time. As the name implies, you will be buying and selling all within the same day.
You need to sit at the computer and view the price dips and hikes constantly to make small profits that eventually add up. Therefore, be aware that you most likely will be buying and selling multiple times using several different cryptocurrencies.
This method is the most stressful but it can become a profitable full-time job if you want to be a professional crypto trader.
Choosing the Best Crypto Investing Strategies
So how do you choose one of these crypto investing strategies? It depends on your experience, how much money you are willing to risk, and how soon you want to make a profit. The more money you put into crypto trading the more you will need to monitor the market, but the chances of making a profit also increase.
Be sure to read more of our cryptocurrency articles to help you get started trading.
Article Submitted By Community Writer