Cryptocurrency has grown in popularity as a trending topic and a lucrative financial asset for investors. It is a form of encrypted digital currency that is highly volatile in global investment markets. Cryptocurrencies have a variety of names that have been coined by the companies that issue them. These digital assets are gaining popularity with investors because the cryptocurrency markets are open 24 hours a day, seven days a week to anyone interested in investing anywhere in the world. A critical aspect of cryptocurrencies to consider before investing is their extreme volatility. Regardless of their volatility, however, it is possible to navigate the market and manage risks.
Investors’ strategies vary according to their risk tolerance and financial objectives. Everyone interested in investing in cryptocurrency can use the following method.
Bitcoin Investment Strategy in Six Easy Steps
1. Create an account with a cryptocurrency exchange and purchase “blue-chip” cryptocurrencies like Bitcoin, Ethereum, and so on. (Here are the top 5 of the Best Cryptocurrencies to Invest)*
2. Purchase a hardware wallet** from a manufacturer such as Ledger or Trezor and transfer the coins from the exchange to the wallet.
2. Stake the coins you can on the hardware wallet to earn a passive income while holding them (if you are less risk-averse)
3. Store the wallets in a secure location, such as a bank locker, and keep the recovery phrase (used to regain access to the coins if you forget the hardware wallet’s password or the device becomes damaged) in a separate secure location.
4. Ignore it for the next two-five years.
5. Transfer the coins to an exchange and cash out or begin using them in their respective ecosystems, as they will have transitioned from a speculative asset to a usable good at that point (already is to some extent but will be more in the future).
Using Bitcoin as an Investment Strategy
A successful investment strategy maximizes gains and minimizes losses while managing risks.
I hope you found this article beneficial. While I am aware that this investment strategy may appear tedious to some, it is, in my opinion, the safest way to profit in the crypto space. While the short term is impossible to predict, I am confident that the current prices of Ethereum will be considered highly cheap soon.