I want to start an open discussion on what people believe is the best way to approach the cryptocurrency market. I realize that there is no correct way to play any market but there are ways to play it smart.
Protecting yourself from downside losses is the first thing that come to mind, always have your exit points set and don't make decisions based on feelings.
Never invest more money than you can afford to lose. If everything went to zero you would still be able to pay the bills.
Besides these basic points which everyone should follow what do you believe is the best way to invest in this market.
Is hodling the best method?
HODLing for the longer term has numerous benefit for the average investor. It requires you to buy in and hold for the long term. You don't have to watch the market everyday and price swings shouldn't affect you. This is a long term investment which you believe in 1, 5, 10 years will be worth more than it is today.
Is trading the best method?
Trading crypto is of course going to be a more risky invest choice. With the risk though you also stand to make a greater return. The market for crypto is extremely volatile which sets up a good trader to make money off the volatility. In turn a trader can also loss a lot of money in a short amount of time if they are not always watching the price.
Which approach do you believe is the best way to invest in cryptocurrency?
I totally agree!!! I think the biggest part of investing in crypto is #1 buying the right coins and #2 having a buy up to price so you do not overpay or just buying in the dips vs buying at all time highs.
Visit my page and i have some buy up to prices for coins
I think buying the dips in coins that you believe in is a great strategy at the moment. The market as a whole should continue to move higher for the coming year. Every dip should be followed by a move higher eventually.
Hey @jdank321
It's depend on your time frame. You decide when you want to rip the fruits.
I think we should have a balanced approach because trading is a full time job. You need to invest your time and money to make smart trades.
What do you say?
Hi @asolopreneur
Yes, it does depend on your personal preference on the time frame of holding. I do believe most people would benefit from holding for a year at least in this current market. Like you said trading is a full time job so the average person isn't going to spend the time to research and make decisions based on the daily market. Hold for a year take a look and hopefully you've made some money. Otherwise your going to drive yourself crazy in this market with the insane fluctuations.
Thanks for the comment.
I personally believe in long term as trading is extremly difficulty to predict the prices. You often just read about those who won and not those who lost. And these who won often having very strange explainations why they believe, it was working out nice.
Additionally it comes that in some regions (e.g. Germany) there is an additional very high tax on top if you're trading and not holding for at least one year. Adding the tax with the additional trade fees, makes holding in a bullish market IMHO a way better option for. Ah and don't forget the opportunity costs of the time you put into ;)
Great points!
I believe in holding as well for at least a time period of one year in this bullish market.
I do however think that after a period of one year you should reevaluate your holdings and potentially book some profits on overbought coins.