Investment Bitcoin Strategy-1
And in this blog we’re going to talk about the first strategy for investing in cryptocurrency and that is buying and holding. That means simply buying cryptocurrency selling it down the road once it’s worth many more multiples. Well what does that mean. Should we should we buy all of them, should we buy just a few,should we just buy Bitcoin. Well that really depends on your risk tolerance. As an investor you know for some people they just buy the top five and then they never sign in again for like two years and then they sign in at that point sell. That’s kind of it.
Hold onto it and cash out
My strategy is I’m just going to buy Bitcoin. Hold onto it and cash out in a few years. For a lot of people that’s what they’re doing. For other people they’re looking for the big winners just like Bitcoin was a few years ago. They’re looking for the big spikes. So whether that’s ripple or arc or light coin. Who knows. The majority of these will increase in value over time. It’s just about finding out which one will expand you know 144 percent consistently. No one really knows that it’s all based on the market the market changes every day.
New money comes in new people find out new technology is introduced, technology changes, governments put new regulations and so on. It really depends on a lot of external factors. There are so many things that influence the market. You just can’t 100 percent for sure. Choose one and know it’s going to it’s going to win. So for some people the strategy of buying holding is to just dump all their money into you know 10 different cryptocurrency 10 different old coins. They just wait for one of those to jump 2000 percent or more in a serious case. It went up past 3000 percent in under a year which is incredible and just insane.
OMG and NEO Example
With that being said there are some indicators like we talked about in an earlier blog. OMG is performing well and Neo has a lot of traction.
Basically if a lot of people are talking about it like for example all the social media influencers around the world if they start talking about a certain coin go with it because that means they’re going to influence a lot of people to put money into the market.
Like we said before the more money is put in the more that market goes up and that’s just the way it is. I mean that’s that’s math and psychology.
If a certain person is convincing a bunch of people to invest in something well that means it’s going to go up naturally. You know there’s more people and there’s a higher volume and you know in this 24 hour period it’s down 9 percent.
But if you look at the graph let’s change it to one day you can see that it’s actually way up there.
Buy Low Sell High
You know over time it’s way up even though it’s down 9 percent now. Always buy low sell high. That’s the name of the game. That’s in the stock market that’s in any type of investing really you want to buy low sell high. It’s real estate same thing you want to buy a property really low and you want to flip it around renovate it sell it for high. So cryptocurrency it works no different.
This skyrocketed stabilize is going to skyrocket again. So based on this we can predict that chances are to stabilize and it’ll go up again and again that could not happen at all though I mean somebody online could talk about this being the next big thing Neal being the next big thing which actually is what’s happening right now and that’s why this recent surge happened and people believe in the neo cryptocurrency and the developers that are working on it.
You know people trust that people are putting money into it. They’re trading their bitcoins for it and holding onto Neo for the long run. All right well let’s go back to the last price and organize the lows. So this is a tiny fraction. Switch just to one day and you’ll see what happens here from the very beginning.
It just had nothing for the whole time. And then it skyrocketed all the way up to 130 at the very end there from four. So for all the way up to you know 130 and then now it’s around 30 right now and you can see here that’s not even ranking as one cent. So I mean this is extremely cheap. Will it go up again ? I don’t know since it wasn’t kind of a constant slight growth. It was just actually declining and that it had a little bit of a surge in that it declined again. Then a huge spike in it dropped almost entirely to here. I’m not convinced totally that this is going to go all the way back up again and continue from there.
So in conclusion of the buy and hold strategy the idea is to buy it for a certain price and then sell it for a higher price way down the road and make a really great profit on that. That’s the idea.
Super simple you’re not doing daily trading or anything which is the next strategy buying holding is just the simplest way you can get in and start to invest in cryptocurrencies. If you don’t have a lot of time in your hands or you just want to use it as a long term investment. You’re not looking to capitalize on every single profit that every single cryptocurrency can offer then the best strategy for us to just buy and hold.
For the most part that’s what I’m doing the bulk of my investments in the cryptocurrency markets are with bitcoin.
In My Opinion
Bitcoin is just going to keep going up. There’s going to be dips here and there but again I’m in this for the long run. I believe in the currencies I believe in the de-centralized block chain. There’s no third party. That to me seems like a much better world. As of now Bitcoin is the big leader. You don’t have anything that’s even close to it. I’m just holding this for the long run.
For Future Strategy
I’ll probably hold my bitcoin for at least five years most likely 10 maybe even 15 years at certain points I’ll probably sell off a little bit of it. Every payroll that comes by with my business. I just take a certain percentage and I convert it into Bitcoin and I take a percentage of the Bitcoin that I have let’s say 10 percent and then the 10 percent is what I use to buy the other cryptocurrencies the alt coins.
So that’s kind of my strategy right now holding for the long run 90 percent of it is in bitcoin just holding 10 percent of my cryptocurrencies are for experimental investments where I try to find some of these ones. That will go to the moon overnight like these 2000 3000 percent increases and that’s based on just a bunch of articles. I read on line and trends I see in the graphs day to day and what people are talking about I pay attention to some influencers who have hundreds of thousands of followers or millions of followers. Because people will follow them. It’s not about.
Even if they know really what they’re talking about it’s people are going to follow what they say because they are influencers or social media influencers. They say something people do it. If a lot of people are talking about something chances are if you can get in early it will be a great investment.
Goes Up Everyday
I heard a way of explaining Bitcoin compared to the other cryptocurrency is a little while ago. I really liked it so they said Bitcoin is the ocean it’s the tide that goes up and down every day. The other cryptocurrencies are the boats on the tide they’re very small they don’t take up much space at all but when the tide goes up and down the boats follow. Because they’re you know they’re on the ocean. They rise when the tide goes up and the lower and the tide goes down and that’s a really great way to think about the market as a whole. Because Bitcoin is so large in volume compared to the other ones and it just has so much support compared to the other cryptocurrencies it kind of controls the market. When it goes up the others tend to go up when it goes down.
The others tend to go down and it’s not foolproof it doesn’t always happen like that and there are some exceptions but more so keep that in mind. Again six months from now that may not be the case. You know for example like coin as I said before is a duplicate of the code in bitcoin just with some changes in a different developing team. So who knows in a year or two this could be way up there.
Now I don’t think it’ll get there based on the volume it has and the amount of coins that can be mined and just the general fact that Bitcoin so far ahead. But you never know and that’s that’s the interesting and fun part about cryptocurrency is it’s an exciting thing to invest in and it’s never a dull moment.