Cryptocurrency Investing

Investing can mean a few different things:

  1. Buy and hold a coin until it reaches a high price, then sell.
  2. Invest in startup companies; ICO(Initial Coin Offering)

This is a completely new asset class with a lot of unknowns – so it is high risk.

Strategies for Crypto Investments:

Never invest money you can`t afford to lose!!

Fundamental analysis – look at coins, are they just copycats or do they offer some great features?

Early adoption – be ahead of the crowd

Diversification – trade with different altcoins

Timing and execution – timing is everything! Buy when people are scared and sell when people are greedy(Warren Buffet)

Adding value – participate early in the development of an altcoin

 

Trading timeframes:

The shorter the timeframes the more likely you will lose money. Tip: don`t push it – once you bought a coin wait until it reaches a good price point for you to sell it again.

Investing: if you buy coins and hold them I would call it investing, not trading.

Combine the trading and investing strategies. What I do is to purchase coins I want to invest in anyways. I do that with multiple coins and then I trade them for the short term as well. I sell when the price goes up and buy back in when the price goes down. I then use my trading profits to buy and hold more Bitcoins or great altcoins for the long term.

It is a good idea to trade on different time frames. Short term and long term.

Remember – this is not financial advice and for educational purposes only. If you chose to buy, trade or invest you do so at your own risk!