Wondering what is the best cryptocurrency Trading strategy to grow your money?
Do you think it is better to actively trade your crypto or to just hold and wait for it to appreciate?
Well, while either crypto strategy works, there are advantages and disadvantages on both sides.
When I wanted to go into cryptocurrency, my mindset was that of a traditional investor: Get in early enough and stay long enough to capture as much value as I can.
Well, that’s the Warren Buffett strategy for investing in stocks, but does that apply to cryptocurrency as well?
In this article, we’ll be looking at both strategies of trading crypto for profit or to hold and wait for it to appreciate.
Let’s begin.
Trading Cryptocurrency
Crypto trading is a very lucrative venture. No one can tell me otherwise.
On a good day, you could make as much as a 10% profit on your capital, but there is also the risk of the trade going the opposite way.
Crypto trading has evolved so much in the last few years, so much that there are now technologies for trading crypto in real time.
This means that active crypto traders can now make money whether the price of a crypto is depreciating or appreciating.
There are massive opportunities on both sides of the scale.
Here are two ways to trade cryptocurrency:
P2P Buy & Sell
Most of the cryptocurrency platforms these days now make available P2P trading mechanisms due to the vulnerabilities and risks involved with traditional payment systems.
Now, someone from Nigeria could trade crypto with someone in Vietnam in a matter of minutes.
These P2P Buy & sell trades provide massive opportunities to make money both in a downtrend and uptrend.
P2P crypto traders only need to adjust their buy or sell prices to start making profit from a price depreciation or appreciation.
Crypto Flipping
I love the word ‘Crypto flipping’ as it gives me the impression of flipping real estates by buying low and selling high.
Same applies in the crypto world.
Crypto flipping is a one-way traffic, and traders only look for opportunities to buy low with a view to sell high later, just like flipping in the traditional sense.
The idea is to look for as many listed cryptocurrency as possible that you think have the potential to appreciate, and then buy them.
Once the bought crypto appreciates up to your take-profit mark, you sell them and move to the next opportunity.
You could also look for depreciating crypto with the potential to retrace and buy them so as to capitalize on the profit that ensues once that crypto makes a U-turn.
Remember the world ‘buy the dip’ ? Here’s where it gets real.
Holding Cryptocurrency for Profit
Like I said in the intro of this article, my best investment strategy has always been to hold for the long-term and be as passive as possible.
I love the Ethereum concept and believe so much in its potential, so ETH was one of the few cryptos I camped with.
But looking at the whole crypto market situation as a crypto holder, you’ll quickly begin to see that you’re sitting on a bag of opportunities and doing nothing.
In my view, the crypto market, just like the stock market, presents opportunities for making money on a daily basis. You’re either busy making money in the market or busy watching others making money.
While I believe that the value of Ethereum and many other Cryptocurrencies would appreciate in value, even up to 100x in the next few years, you can’t help but see that there is a massive opportunity to make good money by trading crypto.
The Best Crypto Strategy for the Long-term
My best crypto strategy is to apply both crypto trading and crypto holding.
There is sense in this.
Create your own crypto index of not more than 10 cryptocurrencies, and hold the bulk of your funds in them.
Then you can always use part of your base crypto for daily crypto flipping and trading activities.
This helps you make money in the interim while you secure the future of your funds by holding it in high-performing anti-inflation digital assets.