Every Crypto Investor Should Be Doing These
With the exception of a few persons, most of us invest in crypto because we hope to make financial gains. In other to succeed in achieving this goal, we employ various strategies to yield profit and maximize our gains. After some thought, I came to the conclusion that the following strategies are the basic approaches that every crypto investor should using;
1. HODL
Most people in crypto are familiar with this one. Hodl is a strategy that should be used with coins/tokens which you believe will appreciate in value in the long run. Although, hodling can be applicable to any cryptocurrency, I think it is especially good for coins/tokens from projects with good use cases. Because these are the projects that are likely to last long enough for the token value to increase. Additionally, hodling is a very good strategy when you find yourself in a bear market.
2. Staking/Farming
This strategy allows you to earn interest on the crypto that you own. This is one approach that goes well with hodling. In general, if a coin you have invested in and wish to hodl is stakeable, it is a good idea to stake it. That way, you can earn more while hodling. However, always ensure that you pick trustworthy and reliable platforms for staking.
3. DCA (Dollar Cost Averaging)
Whether you are hodling or staking, there's always the possibility that the market value of your investment will drop at certain times. One good method to utilize during such periods is DCA. In simple terms, DCA is a strategy whereby as the price of an asset you own drops, you buy more of that asset at the cheaper price. The general effect of this strategy is that it reduces the average purchase price of that asset in your portfolio. It is a good approach to use with assets that you believe will recover from any market dips because it increases your potential profit by reducing your average entry price.
4. Trade
A well-calculated trade can bring instant and huge profits, if done right. Not everyone is good at day-trading and day-trading is not what I am talking about here. Rather I am referring to being able to spot those market opportunities when you can trade in your crypto assets for a good profit. Whether you are hodling or staking, you should at least know to how to read the market and trade some of your assets for profit whenever the right market presents itself.
I believe a combination of these approaches, coupled with a selection of good crypto assets, increases our chances of making good financial gains with cryptocurrency.