Getting rich with crypto is very much in vogue! Success stories continue to clamor for space all across the web urging investors to jump onto the bandwagon! Making money with crypto would involve developing loads of skills including using a “bitcoin ATM near me”, learning to buy and how to sell, understanding the complexities of the market movements, picking up important facts about blockchain technologies, and so on!
There is plenty of material available online to pick from. Reading through them and seeking expert advice as and when needed is a good start. The actual skill, however, is developed by making moves in the market. The more you trade, the more you learn. Beginning with small investments for capturing the sentiments of the trade swings is a smart choice!
The HODL Concept
For those trading with crypto money, the HODL strategy translates to “holding a coin for long-term growth” and this is one strategy that has truly caught on with long-term investors. This has especially been the raging trend among Bitcoin investors since BTC has been around for quite some time and is considered to be one of the most stable among crypto coins. However, no single strategy is considered foolproof when it comes to the crypto markets!
HODL strategy holders too had to wait through a period of 4 months when the markets were bearish owing to the major price correction in bitcoin that happened recently. Bleeding every day for 4 long months wasn’t a happy experience for these investors and some of them also lost some serious money!
Then, before you head to a “bitcoin ATM in Georgia” for buying BTCs, strategies for investments have to be thought out! The safest bet perhaps is to diversify. Distributing your eggs into multiple baskets is the easiest way to mitigate risks in any investment domain and cryptocurrencies are no exception!
Grouping for Diversification – How do your Categorise your Investments?
- Grouping based on market capitalization: Have you invested across the small, middle, and large-cap? Do you know which coins fall in these categories? Have you managed to create a healthy mix?
- Grouping by Investment Categories: Some of these categories could be a currency, platform, utility, platform, and so on.
- Grouping by Investment Periods: You should sprinkle your funds among very short, short, medium, and long-term investments.
- Long Term Investments: This is typically your HODL investment. These would be the coins you continue to put your trust in and those you consider “solid”. When it comes to these coins, you do not pay attention to short-term price fluctuations and the idea is to sell them at the double, triple, or sometimes even four times the value over the long term.
- Middle–Term Investments: They are not as rock-solid as HODLS but are considered decent prospects. Timing the entry right is important when you are dealing with mid-term coins. A bull market will provide better returns with mid-caps. They offer better returns when the market is on the rise as compared to large caps.
- Short–Term Investments: These are fun if you have the appetite for adrenalin-pumping risks. You could pick momentum trade, swing trade, or day trading depending upon your preferences!
Get clarity on these facts now before heading to a BTC ATM.