There are several ways to invest your money and make a long-term profit. Investors usually keep a close eye on the market to be able to put their money on suitable projects for a certain period of time. What strategies are used by investors to get the highest returns? We list the best ten for you!
1. HODL
HODL (a deliberately wrong spelling of ‘hold‘) is a popular strategy for crypto investments, where investors hold on to their coins for a more extended period of time, despite the volatility in the market.
2. Dollar-Cost Averaging
DCA (Dollar-Cost Averaging) is a strategy where investors regularly invest a certain amount in cryptocurrencies, whatever the price. This way, the investor can spread the costs and get a better purchase price on average.
3. Buy the Dip
This strategy entails investors buying when the price of a cryptocurrency has decreased, which makes sure they can get in at a lower price and profit from a potential price rebound.
4. Swing Trading
This is a strategy where investors try to make short-term profits by trading on the volatility of the crypto market. Investors who follow this strategy buy when the price is low and sell when the price is high.
5. Diversification
Investors can spread their risks by dividing their investments into several cryptocurrencies and other assets, like stocks, bonds, and commodities.
6. Long-term Investing
In this strategy, investors aim for the long-term growth of their investments. Following this strategy, investors focus on the market's fundamental strengths and select projects they think will go through significant growth.
7. ICO-investments
This strategy focuses on investing in ICOs (Initial Coin Offerings) of new projects being launched on the blockchain. Investors following this strategy aim for projects with promising teams, technologies, and business models.
8. Staking
This is a strategy where investors can ‘stake‘ their crypto in a wallet to support the blockchain and earn rewards in the form of extra tokens.
9. Mining
In this strategy, investors invest in mining cryptocurrencies by building or buying powerful computers verifying the blockchain and mining new coins.
10. Event-driven investing
Investors following this strategy keep an eye on news and events that can influence the price of a cryptocurrency, like software upgrades, new partnerships, and regulations by governments.