Cryptocurrency Investment Strategy
The triumph of Bitcoin is described as the biggest investment opportunity since the explosion of investment dot com, crypto, and blockchain projects achieve high valuations simultaneously.
Bitcoin is indeed a Star. At present, there is no investment instrument that can provide benefits as large as this crypto currency.
However, amid the soaring value of Bitcoin, there are concerns that the Bitcoin bubble will soon explode in a terrible crisis.
The existence of Bitcoin futures trading will help protect the price (hedging) of people who make transactions in the physical market, because crypto is considered more independent than the central bank or any government.
Usually, there are hedging requirements for investment in countries that have high inflation and weak currencies. In contrast, there is no interference in the digital currency of the authorities.
Investing in the crypto world doesn’t mean you can get instant profits and become an impromptu rich person.
There are several things that need to be learned such as strategies and understanding of curves that can help you to achieve your goals, for more information : bitpium.com site
For you new players in digital currency, there are five strategies you can do, namely:
# 1 Has an Understanding of the Cryptocurrency Concept
In investing it is very important to know and fully understand the knowledge of cryptocurrency itself.
You need to know the terms that exist in the cryptocurrency before investing in this field.
If you don’t know the basic techniques of cryptocurrency, you will be confused yourself when investing.
You also need to know how to do business, because in cryptocurrency there will be a trading and investment process. You need to learn the space for cryptocurrency.
Cryptocurrency traders are mostly people who have long known the nature and character of cryptocurrency. They have understood the cryptocurrency trading system well.
Programmers and people who understand about technology also participate in the cryptocurrency trading process, because cryptocurrency is a very profitable business today.
# 2 Frequently Seeing the Stock Market
The basics in cryptocurrency trading must be noticed.
In researching a market, usually a trader will refer to fundamental analysis, so that you will understand information related to the market. You can do this often by looking at the stock market.
Crypto market has a very high level of volatility, the movement of its value can occur very quickly and defeat the trading logic that have been known.
You can look at the charts on the stock market and focus on the chart so it will get an easy understanding of the price fluctuations.
Most importantly, you must understand the price fluctuations in these vendors. Because price fluctuations are the key to finding profit from cryptocurrency.
Where you have to buy coins when the price goes down and sell it again when the price goes up.
There are several factors that determine the rise and fall of the value of an asset, for example speculators, changes in market demand, market supply and manipulation by large institutions.
You must avoid making the decision to buy a coin only on the grounds that the coin is a coin that is popular and has a value that continues to increase.
Complete yourself with understanding from various sources and general trading theories such as Fibonacci, Relative Strength Index, MCD, Bolinger Band, and so on in determining your investment steps.
# 3 Coin Diversification
Professional traders will usually buy a variety of crypto assets and create a kind of portfolio that lists their assets.
Diversification like this is done to minimize the risk of possible losses.
For example, when you lose money on coin A, then you will quickly make a stop loss and seek profit in coin B assets, and so on.
The second reason is preventive action, so you can avoid losses if the currency collapses.
Although the position of several currencies is currently “over the wind”, but because they tend to be unstable, it is necessary to diversify the coin.
Cryptocurrency itself is a very unpredictable commodity so it is very risky.
Primarily, if the regulator in the future is not sporting the existence of cryptocurrency in society.
Buy a minimum of 2 crypto currencies and make observations as often as possible in the stock market and choose the currency that you believe to be the most profitable.
# 4 Start with a small amount and make a measurable increase
Trade with quality, not because of quantity.
You can start in a small amount that suits your pocket.
We recommend that the money you invest is cold money, meaning that it is not the money you use for everyday purposes.
Every cryptocurrency has its own advantages in terms of its technology. But it remains basically all based on the law of demand and supply.
If you are familiar with the events in the market, start increasing your capital little by little to buy crypto money in greater value.
# 5 Reallocate your Investments
Crypto currency traders can seek profits from the difference in the price of digital money between exchanges in various countries.
Because the price of digital money on each exchange can vary, this exchange transaction is referred to as arbitrage trading.
You also have to always update on the latest news and news on the capital market.
Because sometimes products other than Bitcoin can also rise in price by the existence of large events carried out by coins or upgrades made by one of the digital currencies.
For example, XLM, which previously announced cooperation with IBM, or Ripple (XRP), which cooperates with Amex, can have a potential increase of 20% -200%.
With a variety of information from the chat groups that you follow, as well as from forecaster trading, there will be a point where you get confidence that a coin will have better performance than others.
That’s where your chance to move from one currency to another crypto currency.