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Everyone Should Be Aware Of These Crypto Investing Strategies

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Alternative Investing
Everyone Should Be Aware Of These Crypto Investing Strategies

Some individuals invest in cryptocurrencies because they believe in their ability to disrupt the financial system and fundamentally alter the way we pay for products and services. Others, on the other hand, buy bitcoin in the hopes of making money. Purchase at a cheap price and sell at a high price: This basic investment credo may be applied to bitcoin and other crypto investing strategies, as well as any other asset – equities, bonds, and real estate.


1. Averaging of Dollar Costs (DCA)


Dollar-cost averaging is a tried and true trading method that can simply be adapted to cryptocurrencies. The technique is crypto explained simply: instead of investing in large quantities all at once, you would invest in modest amounts over time in a disciplined manner, buying at a specific time and day of the week and only at those times.


2. The Relative Strength Index (RSI) is a measure of how strong (RSI)


The relative strength index (RSI) is a chart indicator that calculates the average number of gains and losses over a 14-day period to determine momentum. Whether an asset is "overbought" or "oversold," the indicator line oscillates between 0 and 100, indicating when it is "overbought" or "oversold."


3. Cryptocurrency Shorting


Is it possible to short cryptocurrency? The simple answer is yes — but only if you're willing to take significant risks (despite its apparent popularity with subsets of the crypto crowd).


Shorting is a trading method in which you wager against the price of an asset rising. Investors can short the price of Bitcoin using derivative instruments such as futures and options, just as they would for another asset class like equities.


4. Investing in Indexes


For passive investors, index investing is ideal since the assets chosen and weighted in a portfolio closely resemble popular, time-tested, high-performing portfolios.


5. Purchase and Hold


As the name suggests, this is likely the most basic and easiest strategy to invest in any asset class: purchase it and hold it for the long term. Holding on to an asset for numerous years carries the risk that its value may not increase as rapidly as if it were invested in other assets or asset classes.

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