Cryptocurrency Investment | The Best Strategy for Maximum Profit

Cryptocurrency is now arguably representing the class of new assets in recent years because it is not easy to find the right strategy for investing in these assets. Although difficult, there are several ways to help this problem. This article will discuss strategies that are at least suitable for cryptocurrency investment and can be used as a long-term or short-term strategy.

Fundamental Analysis, This step is the first step for people who first came to the world of cryptocurrency.

Market Capacity

Perform cryptocurrency research which is the target of investment by tracing the crypto market through site providers such as Market Capacity, Coinmarcetcap, Coin Gecko, CoinCheckup and others. For example, Bitcoin has a market capacity of $ 70 million, of course, this will make Bitcoin more easily traded in various platforms.

Related article Most Historic Bitcoin Transactions

Whitepaper

A whitepaper is a document that contains details of an ICO project that will be done, by understanding the whitepaper we will have an idea of whether the prospect has good prospects or not. In the past few years, as crypto prices have fallen sharply and regulations are getting tighter, many investors invest blindly in many ICO projects for the sake of big profits. However, after tightening and the number of fake ICOs made investors prefer to look for good ICO projects. 

FUD News

The FUD spreads so quickly that it makes the cryptocurrency volatility increase significantly. Matching and always updating information will give you a good idea to know which Cryptocurrency is worth the investment or not.

Technical analysis is the steps to find the best strategy through systematic analyzes. there are three types of technical analysis that you should know to be successful in investing Cryptocurrency. 

• Moving averages (determining price trends over a period of time)
• Chart patterns (support and resistance, trend lines, reversal patterns)
• Volatility pattern (MACD, RSI, etc.)

HOLD Strategy

HOLD strategy or defense strategy is a method or tool for not selling cryptocurrency, usually this strategy is used when crypto prices start to stabilize and slowly rise or good FUD news.

For example, Ana has a Bitcoin for $ 4 thousand and wants to sell it, then Ana knows that the price of Bitcoin is slowly rising and FUD news about bitcoin is experiencing a good trend and Ana has decided not to sell Bitcoin for some time. after a while, the price of Bitcoin became $ 8 thousand and Ana sold it Bitcoin.

From the conferences above, I made the HOLD strategy because I knew the Bitcoin market was in a good trend and then it held back until the price of bitcoin reached a high point and everyone got a very high profit from this strategy.

A lthough the example above is considered unreasonable because no one can predict the price of cryptocurrency, taking into account various aspects and the use of a good strategy, you can have a picture of crypto prices in the future. 

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Buy Cheap Selling Expensive Strategies

This strategy is an alternative and works for fluctuating market investment. This strategy is very simple, where you only need to buy coins when the price is low or down and sell when the price goes up. although many consider it not a strategy, this method requires certain steps to get the maximum profit.

Here, you need to know when the price of the cryptocurrency you buy goes up so as not to lose and make sure the purchase does not exceed your sales expenses with this strategy

Each strategy certainly has advantages and disadvantages, to outsmart it there are several investment tools to support you in obtaining profits in cryptocurrency investment

• Cointraking.info: is a tool for tracking your portfolio.
• Coinmarcetcal.com: is an application of the community-managed cryptocurrency market calendar and is available for free, with this tool being able to see what events are being passed or will be faced with your choice of coins.
• Cryptomiso.com: It is a Github monitoring tool that can help you know the information on the development of a particular blockchain or cryptocurrency.

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