Have you already purchased some cryptocurrencies but you don’t know the next step to take? Many people have been in the same boat. It was only last year when Bitcoin and other digital currencies surged in popularity. With the values of different altcoins increasing at least ten times over the past year, it’s not surprising that a lot of new investors have entered the market. But you’d never want to put your money in the crypto market without knowing how to maximize gains. These strategies should help you get the most out of your investment.
Strategy 1 – Invest in ICOs
ICO stands for initial coin offering. Basically, this marks the time when buyers can get their hands on a brand new coin. Why would you want to invest during the infancy stage of a digital currency? Simply because you can get the coins at the best price – and there’s nothing to go but up. Now, this isn’t to say that investing in ICOs is risk-free. In fact, it can be very risky especially if the coin has little, if any, real-world use cases.
Many governments have started to regulate ICOs because they present a huge risk. But if you want the closest thing to pure profit, then sell the coins immediately when the price increases. It’s common for a new coin to spike in value by at least 50 percent. You may want to consider selling at this point instead of waiting it out. Even if the value increases further, you can rest assured that you have made some nice money quickly.
Strategy 2 – Use predictive analysis
You should always remember the speculative nature of the cryptocurrency market. As soon as some bad news hit the public, expect the coin in question to plummet in price. But by using predictive analysis, you can make trades that are backed up by valuable data.
The predictive analysis involves gathering data and analyzing it to provide informed trading decisions. You can use advanced tools to do this yourself, but you’ll get overwhelmed as a beginner. It’s better to use a cryptocurrency trading robot such as Ethereum Code which utilizes both big data and predictive analysis to make trades for you. You can still use the manual trading feature should you wish to apply your own strategies.
Strategy 3 – Hold for the long-term
Have you seen how much bitcoin and altcoins have increased in value over the past few years? Go ahead and check the price charts. Surely, you’d wish you had started investing 10 years ago. But you can still invest in digital coins today and hold on to them for the long term. Despite tightening government regulations, the future still looks bright for cryptocurrencies as evidenced by increasing real-world applications.
These three strategies should serve as a good starting point for your cryptocurrency investing venture. The volatile nature of the market means you should be prepared for losses along the way, but knowing how to properly handle your investment helps ensure you come out making big bucks on crypto.