Crypto: the different investment strategies

The investment world is quite rich, very dynamic and in constant evolution. Like most financial markets, the cryptocurrency market is endowed with a volatile nature. That is why it is important to choose the investment strategy that you want to follow when investing in cryptocurrency. So, what are the different investment strategies in virtual currency? Discover them here.

An investment strategy: what is it?

An investment strategy is a set of rules and instructions designed to help investors make investment decisions. It allows you to know what to invest in, when to invest and most importantly how to invest. Conservative strategies and aggressive strategies give you a wide variety of techniques to implement.

In fact, conservative strategies generally focus on managing low-risk portfolios with the aim of protecting wealth. In contrast, aggressive strategies are aimed at managing high-risk portfolios for the purpose of capital appreciation.

While all investment strategies have pros and cons, the best choice for you will depend on several factors such as available capital, goals, lifestyle, and age. Investing in Bitcoin through a trading platform like is ideal for traders of all levels.

The importance of an investment strategy

In general, investment strategies work as an orientation guide. They encourage investors to create a wealth plan, define their goals and their ability to tolerate risk. In other words, the investment strategies recommend an investor to make all the decisions.

The benefits of having an investment strategy are multiple. It allows an investor to follow a well-defined plan so as not to get caught up in FOMO (fear of missing out). In addition, it forces investors to think ahead about investment objectives and decisions. That way they are less vulnerable.

With the investment strategy, risks are reduced and calculated. In addition, the maximum acceptable risk is determined in advance. The investment strategy makes it possible to define realistic objectives. This contributes to increasing and securing the capital of investors.

In short, investment strategies help investors achieve their goals. Regardless of the market chosen or the resources used, the risk is always inherent in the investment. Knowing that the cryptocurrency market is notorious for its volatility, entering this market without an investment strategy will increase the chances of making bad decisions. However, the investor is influenced by fear and greed. This will inevitably lead to more risky scenarios.

The Six Best Investment Strategies

There are different investment strategies. To choose one, first make sure that the amount you invest is set aside for investment and not for everyday use.

Next, you need to choose the site you want to invest in. Finally, you need to define a short-term and/or long-term strategy. When these 3 conditions are met, you can invest in the world of cryptos. Discover 6 investment strategies.

Invest very early in sustainable and solid projects

When you give your investment time, chances are you will win in the long run. This is especially notable when you choose a sustainable project and keep your tokens until their value increases. To discover the new project ideas, you can use different platforms such as ICO, Cryptowatch, Smith + Crown and Cointecko.

ICO platforms give you information about upcoming ICOs (initial offers). You will also receive expert advice to help you make the right decision. On the other hand, Cointecko gives you an overview of over 1000 cryptocurrencies for those who want to be ahead of the market. You can have the ranking of crypto currencies live and in real time.

On the other hand, Smith + Crown is the basic platform for finding electronic currencies in the world. It offers you a wide range of studies based on the analysis of wealth management and cryptocurrency.

Cryptowatch is a platform that offers you a hundred cryptocurrencies in live feed. It mainly helps you to optimize your chances of success after buying a cryptocurrency.

Rather a HOLD (hold for dear life)

The acronym HOLD is short for “hold on for dear life” which literally means “to hold as if your life depended on it”. This passive long-term strategy has proven itself to be one of the most efficient and easy to win on Bitcoin. It consists of buying cryptocurrencies and holding them for future returns.

However, they should not be sold at the slightest fluctuation. This strategy makes a lot of sense when you decide to invest in the SwissBorg ecosystem.

Choose to turn off

Strike is also a passive strategy. It is very close to the token mining strategy. By favoring staking, you immobilize your cryptos in a smart contract available on the blockchain. This option allows you to secure your tokens thanks to the strength of the calculation.

This investment strategy is often compared to PoS (Proof of Stake) consensus mining. In reality, when you stake, you are not only contributing to hashing and security, but also to the transactions being made in the blockchain. Storing your tokens will give you a reward in units of cryptocurrency.

Choosing crop farming

Yield farming or “intensive farming” is a strategy that is almost like staking. The only difference is at the level of the cryptos immobilization for a later raise.

Here you add liquidity in dApps (decentralized applications) with a reward in the form of interest. Yield Farming is almost identical to a passbook.

Set your sights on the ‘average dollar cost’ approach

Also called “programmed investments”, this strategy consists of spreading your investment over time. It involves putting a fixed amount of your capital into periodic purchases. The advantage of this strategy is that you no longer have to worry about the volatility of the cryptocurrency industry. But even if the market goes up or down, you will get your returns in the long run.

Lean for automated trading

In automated trading, robots take care of your entry and exit positions. These robots are actually computer programs that are permanently present in the market to optimize your earnings and profits. Because they are programmable, you can impose any strategy you want on them.

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