Cryptocurrencies have been of great interest to millions of people around the world for several years now. The trust in the technology has steadily grown and testament to this is just how many ordinary folk continue to register with companies like. This love of digital currencies have been even more so for traders. The crypto scene has become a hotbed for investors looking to make impressive returns on their outlay, and as we’ve seen, it can be very profitable. But only if you use a proven strategy.
, which is the word used for holding in the crypto scene, is the most basic investment strategy. Users effectively invest in cryptocurrencies such as Bitcoin and wait for the price to go up. Back in 2013, if you had bought a single Bitcoin, you would have made a stunning 1800% profit. While cryptocurrencies are now in the mainstream, it’s still early days, and another price hike could occur, or the bottom could drop out and see prices fall further.
If sitting around and waiting doesn’t sound appealing to you, there are also other ways to leverage your currency while you wait. There are peer-to-peer platforms which allow you to invest your currency and provide others with loans. This allows you to earn a bit of extra income via interest, with little effort required.
BTFD, otherwise known as Buy the Dip, is a method that a lot of people follow. If you follow the BTFD strategy, you’re effectively buying low and then selling high, repeatedly. It allows you to make money quickly, especially if you have a lot of spare time on your hands. There is the possibility to make a lot of profit using the BTFD method; however, with great reward comes considerable risk. The prices of cryptocurrencies and the market, in general, is highly volatile. Therefore, you must buy and sell at the correct time, or you risk losing out significantly.
, often shortened to DCA, is another popular strategy. The simple…