Investing in cryptocurrencies
After experiencing the euphoria of 2017 and crossing the desert since 2018, I have developed an investment strategy that allows me to be more serene with my crypto-assets.
This strategy is aimed as much at those who would like to try the adventure, as has a reckless HODLER who wants to consolidate his bases! TL;DR
You have an intelligent strategy for managing your financial assets and you want to try the great technological adventure is financial that crypto-currencies represent! Here are the few steps to consider:
My investment plan for the year:
– DCA 2x per month on the #Bitcoin
– Purchase of #Eth every month
– Purchase of DAI to put on the protocols #DeFi every month
– Purchase of a share (or more) of @RealTPlatformWhat do you think? 😊🤔 — Renaud (@RenaudHeitz) February 6, 2020
Here’s a good strategy to follow 👌
What you need to know: these attractive rates come with different risks than conventional finance. Via Blockchain and DeFi, you must play all roles: investor, advisor, technician and security pro. It is in particular through the elimination of these intermediaries that these rates are possible.
Define the ideal portfolio according to its objectives
This is a crucial step and can be the most difficult… which cryptocurrency will I put in my portfolio?
How to invest in cryptocurrencies
You want to invest in crypto-currencies but you do not know how to do it? We’re going to take it all together step by step.
In this article I give some tips for investing in cryptocurrencies.
It is better to have a significant share of large caps, Bitcoin and Ethereum in the lead, at the risk of seeing your portfolio significantly melt over time. Bitcoin, Ethereum and XRP are the three largest capitalizations to date.
Personally, I want to have:
- 50% Bitcoin
- 40% Ethereum
- 10% of various cryptos (LINK, NEO, ADA, XTZ, etc.)
Why so few small caps?
Manipulation. If you are not a seasoned trader it will be very difficult to know when to sell. In addition, on very illiquid crypto-currencies (with a low volume and few exchanges) it is very easy to manipulate them. You would most often lose out.
Resilience in a bear market. The decline is much more pronounced on small caps. As confidence in the market is lost, investors are selling small caps at a loss to focus on Bitcoin.Crypto-assetTop 2017Fev. 2020BaisseBitcoin20 000€10 000€-50%Etheteum1 500€280€-83%NEO150€14€-91%NANO26€0,8€-97%Maximise purchase and trading fees
As I want to buy several currencies (Bitcoin and Ethereum) the most economical is still to go through an exchange that has EURO pairs to these cryptos.
In my opinion, there are two viable options: Coinbase PRO and Bitstamp. Both have free SEPA transfers, a 0.5% trading fee, and free or very low withdrawal fees.
How to invest in cryptocurrencies
You want to invest in crypto-currencies but you do not know how to do it? We’re going to take it all together step by step.
Optimizations and alternatives are possible: I talk about them in this article. Define a rhythm of purchase as regular as possible
Programmed investment (Dollar Cost Averaging) is the key to keeping a healthy mind while being exposed to extremely volatile crypto-assets. With regular investments, the impact of volatility is lower.
If you set up a regular transfer (weekly or monthly) the purchase price of your cryptocurrencies will become an average. The peaks and troughs will be smoothed out, and your mood will also ^^
“What makes all the complexity of this strategy is that you have to know how to put your impulses, your desires and your ego aside. For the sake of its capital.
— Cryptodidact
Make part of your savings work to generate interest!
In addition to regularly saving crypto-currencies, you can also make this savings work to generate interest!
Earn money passively with your cryptocurrencies
Making your crypto-currencies work to generate passive income is possible! We review the various projects.
In this article I explain in detail how to make money with your cryptocurrencies.
Currently the rates are between 5 and 8% for the main stablecoins: DAI, SAI, USDC, USDT and TUSD.
Cryptocurrencies are not regulated and are likely to experience significant price fluctuations and are therefore not suitable for all investors. Cryptocurrency trading is not overseen by any European regulatory framework. Your capital is subject to risk. You will never lose more than the amount invested on each position.
This page contains affiliate links
