Ethereum was launched in 2015. After 7 years, cut to 2022, the coin shows an awe-inspiring 92,000+ growth. So, just imagine, how “MUCH” you could have made had you invested in ETH during the coin’s initial days. The same goes with Bitcoin as well. A famous teen cryptocurrency millionaire became a millionaire by investing just $1000 in BTC. The major connection between the two facts mentioned above (ETH and BTC) is long-term cryptocurrency investment strategy. While day trading or short-term investment offers you quick money, long-term crypto investment assures dramatically higher returns. Read more at Multibank.io.
The process of long-term cryptocurrency investment strategy is officially dubbed as HODL. When you go for HODLing, you don’t invest for 6 months or 1 year- you generally invest for more than 2 years at least. Now, it’s not that HODLing has to be your only cryptocurrency investment strategy when it comes to crypto investments. If you need quick money, you can consider a short-term cryptocurrency investment strategy for coins that are predicted to go up in the coming few months. But, choose a long-term cryptocurrency investment strategy for other coins that you are planning to invest in.
Long-term crypto investment apparently seems to be a complicated business- well, it’s something that certainly involves certain considerations. Much to your convenience, the post below offers a brief on the pro strategies to follow while you are aiming for successful and safe long-term cryptocurrency investment.
Choose the right coin
The first step in long-term cryptocurrency investment strategy is to select the right coin. The entire fate and future of your cryptocurrency investment strategy depends largely on that one single factor.
Here are the pointers that you should keep in mind while choosing a coin for long-term cryptocurrency investment strategy
- A cryptocurrency with utility, purpose, and vision
- Wide acceptance, adoption, high trading volume, and high market cap
- Backed by a strong team
- Ambitious roadmap
- Sustainable future
- Proven track record of recovery
- Prediction of high surge in long run
You must make sure to check the price target to assess the probable ups and downs of your chosen coins for long-term cryptocurrency investment strategy. You will have to run both technical and fundamental analysis. If possible, read the published whitepaper of your chosen coin. You are likely to find the whitepaper on the official website of your chosen cryptocurrency.
If you are aiming for a successful and safe experience with cryptocurrency investment strategy, please don’t settle for coins that are mostly driven by hype, such as meme coins.
Dollar-cost averaging
It is the cryptocurrency investment strategy where you invest a certain sum of USD over a specific time duration. Say, you have decided that your total investment sum would be $5,000 that you wish to invest over a year. In that case, you can distribute the whole amount into short payments for every month. It means, in this case, you will have to deposit something around $417 every month.
If you go for dollar-cost averaging for cryptocurrency investment strategy, you won’t get the same volume of coins every month. The crypto market is extremely volatile and price swings happen all the time. But the good thing about this cryptocurrency investment strategy is that it helps to introduce discipline in your investment routine. Yes, you might get less volume of coins in some months but also don’t forget that other months are likely to bring you more coins. Most importantly, this cryptocurrency investment strategy will ensure that you are investing regularly- and that too without putting much pressure in your pocket.
Buy during dip
This is a common cryptocurrency investment strategy for long-term investment. The goal is to buy when the prices are running low and then sell off the coins in later years when the coin prices shoot to the moon.
When you are looking forward to long-term investing goals, you are certainly aiming to buy a sizable volume of coins. And, that would involve a wholesome capital investment. But, you can make things a little more manageable here by buying the coins when the prices are low. For example, a coin price can plummet after reaching the ATH. Crypto coins have suffered drastic drops in price after the recent May-June 2022 crash. According to experts, these are the perfect times to buy cryptos for long-term cryptocurrency investment strategy.
However, be careful about the price target of your chosen coins for long-term cryptocurrency investment strategy. It would be mostly worthless to settle with coins that can’t assure a high surge in the coming years- even if their entry prices are low.
Invest in blue-chip coins
It’s always ideal to diversify your investment portfolio and the same rings right for the cryptocurrency investments as well.
However, no matter how many coins you choose, your investment portfolio must have at least 1 blue-chip coin in your basket. Bitcoin is the most preferred option for a successful and safe cryptocurrency investment strategy, be it for long-term or short-term. The coin is poised to hit $100,000 by the completion of 2022. BTC is also predicted to hover around $200,000 by the completion of 2025. You can also count on Ethereum here. The coin is estimated to rise up by 400% by the end quarter of 2022. The current price of Ethereum is less than $2,000. By 2025 December, the coin has been predicted to cross $6,000 and reach up to $7,000.
The reason why experts vote for blue-chip coins for long-term cryptocurrency investment strategy is because they are more stable compared to other crypto coins. Also, by virtue of being legacy coins, they command a promising and sustainable future- a key factor needed for glorious returns on long-term cryptocurrency investment strategy.
Also, to make the most of your long-term cryptocurrency investment strategy, it’s a wise thing to try out crypto staking. Staking is a process where you have to help PoS blockchains to validate new blocks and churn out new coins. The process will need you to keep your coins locked up for a set duration and in return, you will get new coins as staking rewards. But, for that, you have to make sure to invest in PoS coins in the first hand.
