Cryptocurrencies: 5 top investing strategies

Are you at a loss for the “right” investing strategy for cryptocurrencies? The most popular way is to buy and hold long-term, which was how early Bitcoin adopters did. However, the landscape has changed significantly since those early days. These days, making money in crypto requires constant work or an active investment strategy; the more you swim in the crypto waters, the better the outcome.

A fast-evolving space

The cryptocurrency market is evolving rapidly, with new discoveries leading the next wave of evolution. It makes it almost impossible for investors with outdated outlooks to succeed. Uninformed and inactive investors cannot survive in this space either.

Many altcoins from 2013 never returned to their previous all-time highs, while we may never see times like the ICO bubble of the 2017 bull run again. Too many projects from 2017 have either disappeared for many different reasons. Many coins that made waves during the 2021 bull run did not make it to 2022. That is the crypto market, and it is unforgiving.

However, cryptocurrency investment is similar to investing in traditional shares, where companies with solid teams that solve real problems have higher long-term viability. So, how does one navigate the blockchain market?

Here’s tip #1 – Use their products

The best way to validate a cryptocurrency project is by using their products and experimenting with them. The era of raising funds based only on ideas and a whitepaper is long gone. It is time to actually deliver the products. Legitimate projects these days launch a fully-functioning dApp and may reward early users with airdrops. These are coins you should keep in your cold storage wallet.

Then there’s DeFi. It is the new way for investing and participating in decentralized technology. Even though cryptocurrencies have been active for almost a decade, DeFi is a new market segment that’s still in its infancy – relatively. Being in DeFi right now is like being in Bitcoin back in the day. 

Investors eager to join the crypto market right now should think about the metaverse. Arthur Hayes, Bitmex CEO and co-founder, particularly noted that the best projects to choose right now are the ones that involve P2E (Play to Earn), metaverses, and NFT tokens.

Here’s tip #2 – Don’t be last to the party

Listing a cryptocurrency in centralized exchanges generates a lot of hype. Newbies prepare to buy these coins once listed, then prices dump, and they get rekt. Veterans, on the other hand, take advantage of the situation. It is an open secret that these newbies are only providing liquidity for the veterans to cash out their profits.

The question is, how do you become an early bird? DeFi is the way to go, the perfect place to find micro-cap and small-cap coins with colossal potential. Unearthing unique DeFi projects at their early stages could be your window to generational wealth. These projects don’t enoy so much media attention even with their strong fundamentals.   

Tip #3 – More opportunities to come

DeFi is the place to find new gems. These are gems that belong to your long-term portfolio. With a current market cap of around $700 billion, Bitcoin has a short way to the upside. If the Bitcoin market cap reaches $11 trillion, it would have truly become the digital gold. Even though this target looks like an impressive achievement, it does not imply an 11x from this point. DeFi is the place to find these gems with the potential of thousandfold returns.

Investors should be ready to take advantage of a sideways market when Bitcoin and Ethereum fail to reach their ATHs. These predictions echo the recent ‘Taper Landed’ report from Huobi. This report says that as restriction targets market liquidities, the performance of the dynamic markets will have adverse effects.

Here’s tip #4 – Take the risk

Any investment carries risks. There is a high chance of bumping into scammy projects or losing money. What should you do? Let’s look at the bright side of things. The only way to find out is to try. It is an opportunity to learn and gain experience.

People who have skin in the game experienced losses. In the beginning, they were optimistic and ready to conquer the market. Then they realized that it was going to be a bumpy road. However, they held through the market winter, and now, they’re successful, clever, and savvier.

The hardest thing is starting. As the saying goes, It’s about the journey, not the destination.

Here’s tip #5 – Join the crypto force

Once you enter the crypto rabbit hole, you will realize how big the crypto universe is. It is a new industry with plenty of niches and opportunities for everyone. While developers are at the core of developing the blockchain’s infrastructure, there’s a place for everyone – skilled marketers, accountants, content creators, designers, and managers. Every one has a seat at this banquet.