Tips Crypto Investment Strategy for Beginners
Netgenz - Stock | Friends of Cuan, of course, are now back in favor of investing in cryptocurrencies, right? The price movement of Ethereum or Bitcoin during this year may make you tempted to hold this one digital asset. However, what is the meaning of owning crypto assets without having an accurate cryptocurrency investment strategy?
Don't underestimate tactics, you know, because a poorly prepared plan can make your money just evaporate. In fact, it can also make you stump right then and there. Therefore, let's know the following tactics to bribe money from cryptocurrencies!
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Know These 3 Things Before Deciding on Investment Tactics
Well, before choosing the right strategy, Friends of Cuan need to understand crypto assets. The point is, regarding the character of this one "thing". Basically, there are three ways you can identify crypto assets. Where this is the basis for Sahabat Cuan before choosing cryptocurrency investment tactics. Nach, what are those three things?
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1. Research Types of Crypto Assets
Good knowledge is investment stock, regardless of the type of asset. Some crypto-assets act as value protection tools, there are also crypto assets that have the purpose of being a means of payment. Well, you can read several types of crypto assets themselves in the article below.
In addition, you need to understand that the value of crypto assets fluctuates rapidly. Sometimes, this is a day when the price of a digital coin can reach its highest peak. However, it could be a bad price the next day. Therefore, you need to understand the important factors of crypto assets.
2. Know Your Risks!
As mentioned earlier, the movement in the value of crypto assets is really bumpy. So, it may not be suitable for everyone, basically, those who have a conventional risk profile. However, that doesn't mean those with a "play it safe" risk profile can't enjoy making money from crypto assets.
3. Determine Your Final Destination
You must also have an end goal when investing in crypto assets. Because the cryptocurrency investment tactics you determine will be related to the final direction of your investment.
After Checking Your Own Skills, Time to Decide on Cryptocurrency Investment Tactics!
After that, what is important for you to do is choose a strategy to harvest crypto assets that suits you. In the world of crypto assets, two commonly used tactics are trading and earning passive income.
Trading is generally suitable for those who already have crypto-asset analytical skills and have a moderate to aggressive risk profile. Meanwhile, earning passive income is suitable for those who have a conventional risk profile.
Yok, dive into each of the following crypto-asset earning tactics!
Before starting trading, you must have a mature perspective. In other words, you have to be able to use your logic rather than emotions when doing it. So, you don't make decisions in a hurry and it can lead to deep regrets in the future.
- Well, to brush up on your preparation for trading, you need to consider the following things:
- What type of asset class do you want to trade?
- What trading signs and tools would you like to use?
- What is it that drives you to enter and exit the market?
- How do you calculate the performance of your portfolio?
- Will you monitor asset price movements at all times?
Besides that, you need to understand that there is no standard formula for trading. You can do various trading styles until you find one that you like. Nach, the cryptocurrency trading style itself is the same as trading other assets in general, which is divided into:
1. Day Trading
This is a common type of trading found in cryptocurrency investments. In day trading, traders enter and exit the market on the same day to bribe money from intra-day price movements. In crypto assets, traders generally enter and exit the market in just under 24-hour intervals.
Day trading essentially uses price action and technical analysis to make trading decisions. Sometimes, these tactics can actually make money for the wearer. But, on the other hand, this tactic can also sometimes be stressful because the risks are large.
2. Swing Trading
When doing swing trading, traders generally place a holding status for more than one day, but not more than a few weeks.
Those who bribe money from day trading generally take advantage of waves of price volatility that occur over days, or weeks. They generally use a mix of technical and essential analytics to make trading decisions.
For beginners, swing trading is probably the most comfortable trading style. Because swing trading can provide an opportunity for traders to witness opportunities or reflect on their investment decisions while studying the price movements of an asset. So, the investment decisions made do not seem rushed and will be full of calculations.
3. Trading Trends
This trading tactic requires the trader to set a hold status for a long time, it can even be several months. Trend traders generally make money by watching the direction of the price movement of an asset. They will enter the market when there is an upward trend in prices and exit as soon as the price trend shows a decrease.
Therefore, it is not surprising that followers understand trading trends and excel in essential analytics. But sometimes, because of this, some trend traders just fail to read the trend reversal that occurred in advance.
Therefore, they often combine essential analytics with basic technical analysis such as Moving Averages, trend lines, and various other simple technical indicators. Nach, this trading style is suitable for novice traders if they already understand how to mitigate risk.
4. Scalping Trading
Scalping is a trading style that takes advantage of the slightest price movement as well. So, their investment decisions run quickly. For example, if the price of an asset increases by only 0.3% in one minute, they can immediately sell because they "need money".
Therefore, those who are guided by scalping trading rarely apply for a defensive status for a long period. In fact, often they enter the market in just seconds.
Passive Income Strategy
Well, on the other hand, passive income bribing tactics will be useful for those who don't have the time to trade or have a conventional risk profile. However, the meaning is still the same as trading, namely bribing money in the future. What kind of tactic is that?
Buy and Hold
Just as the name implies, investors in this case will buy assets and dampen them for a long period of time. Those who do this tactic plan to make crypto assets long-term investment assets.
Investors generally don't pay attention to technical analysis when employing this tactic. However, they decided to concentrate on essential analytics. In addition, they rarely monitor the movement of asset prices daily.
Generally, in the crypto asset arena, this buy-and-hold event is known as HODL. Besides that, there is also a crypto investment strategy with a survival status and for you, money, namely saving on a crypto asset base. Simply by saving your crypto assets, you can get better savings interest than saving in a bank.
Nach, one of them is saving money in Pluang Cuan! By storing your Ethereum or Bitcoin in Pluang Cuan, you can earn up to 3.5%/year yield. That's enough if you want to increase your crypto asset portfolio?