Altcoins Talks - Cryptocurrency Forum
Crypto Discussion Forum => Cryptocurrency discussions => Topic started by: ShadowCrypto on November 30, 2020, 04:30:56 PM
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There are a few strategies I think an investor can choose. Each with pros and cons.
1) Have a diversified portfolio that is weighted by each crypto's market cap. This should resemble similar price action to the "total crypto market cap" chart.
Pros:
Less volatility and least risky.
Cons:
Will require you to rebalance the portfolio regularly as the crypto market caps change.
Lower overall returns compared to other strategies.
2) Portfolio invested in two or more coins. Each coin being selected based on strong fundamentals.
Pros:
Higher overall returns
Do not have to touch portfolio
Cons:
Higher volatility and riskier
3) Portfolio invested in a single coin. Coin being selected based on strong fundamentals relative to its current price. Basically which coin is the most undervalued with strong fundamentals.
Pros:
Possibly highest overall returns
Cons:
Highest volatility and carries the most risk.
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Myself personally I don't care much for (1) but I can't decide between (2) and (3). Right now I am in the (3) boat but I might switch to strategy (2) come 2021.
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I agree, diversifying assets is always what I am doing. This has good things because we can manage our funds not only in one basket. It will decrease the risks. However, pay attention to what coins or tokens will be taken.
At least, there must be 3 coins in my ooinion:
- BTC
- ETH
- LINK
and will add some other coins that have good progress, liquidity, and also trading volume
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Distributing risks across multiple assets is indeed the right decision. Because you can always take care of yourself. The main thing is not to save time for analysis.
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I agree with you. Keeping crypto assets in your portfolio for a long time is really very liberty, but it can bring good profits when the market is bullish.
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Yes, Mate! I agree with your observation and conclusion. Because I mean and experience all of that during 2018, Because I'm holding too much ICO and Low cap coins/tokens in my portfolio, But ending up a disaster in 2019, Thats why I learned all my mistakes today I'm just holding 5 coins which is the top-ranking and a huge MarketCap, and one of the 5 coins that I choose to hold is already give me a decent returns thats why I must say it's effective to choose the top-ranking cryptocurrencies.
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I am currently holding several tokens such as BTC, ETH, LTC and some DeFi tokens. But of all my assets, only 70% I invested in popular cryptocurrencies, the rest I invested in stable coins, as reserve money.
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Cryptocurrency is much more popular around the world. So I don't think anyone should be told about cryptocurrency usage strategies. Because those who are constantly in the cryptocurrency market, they start researching about crypto currency. So I think all the users that we have now have at least some knowledge about cryptocurrency.
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All of your points are very good but I think all the investors do not like to hold for long. Most people want to double their money fast and that why they wanted to take the risky but most rewards parts. Top 10 CMC coins can give you good and stable profit in a long run. But for the short term, the volatile currency is the best.
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I agree with the ideas. I think you have to be patient to be profitable in the cryptocurrency market. At the same time you have to invest in good quality points in the market. I think it is possible to make a profit in 2021 by increasing the level of investment.
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Cryptocurrency will greatly improve the transaction process around the world. Will facilitate the transaction process. There are lots of stingy currencies in the market for transactions. However, people value Bitcoin the most. People are waiting for the high price of Bitcoin. So I think cryptocurrency will bring epochs to the whole world.
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Cryptocurrency will greatly improve the transaction process around the world. Will facilitate the transaction process. There are lots of stingy currencies in the market for transactions. However, people value Bitcoin the most. People are waiting for the high price of Bitcoin. So I think cryptocurrency will bring epochs to the whole world.
I completely agree with you. Cryptocurrency has powerful potential now. Therefore, everyone is trying to buy Bitcoin, who does not even own all the information and does not even know what blockchain is.
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I totally agree, that if we do make and divide investments in several types of coins then this will reduce our chances of quitting due to high volatility. It can also allow us to do daily trades of different coins. This is very useful and will be more fun and also less risk.
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The important thing is that I will never put the fund in one basket. This is too risky and I will not take it. however, diversifying the crypto into some is actually the best idea. But in this case, we must be smart in choosing which tokens or coins are trusted or promising for the hold or trading.
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It is not possible to make a profit by rushing to invest in the cryptocurrency market. So, I think you should be patient by investing in the cryptocurrency market. The demand for cryptocurrencies in the market is constantly increasing. But it will be better in the future.
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I invested some money in Altcoin and a bit of BTC, and the value increases significantly, but I still scared about so many hacker victims with their crypto-asset,
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I only have 3 coins for me to hold for a long time.
Making a lot of profit is everyone's choice and also I while holding a lot of altcoins in my portfolio for 2-3 months, but at the same time I thought to choose to have no more than 3 coins for investing or trading, so I can easily manage the profits because I have fewer coins in my portfolio.
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Indeed, this strategy can be used by everyone in investing in cryptocurrency.
Unfortunately now cryptocurrency is more difficult to guess and this is definitely very risky.
I have my own trick for investing in cryptocurrency, which is to only trade with coins that are included in the top CMC to make it safer.
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I have 1-2 big coins, and I have a handful, of small alts, to get the great profit, is they manage to shine. Small alts, is like betting. Small amount, with huge profits.
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All of your points are very good but I think all the investors do not like to hold for long. Most people want to double their money fast and that why they wanted to take the risky but most rewards parts. Top 10 CMC coins can give you good and stable profit in a long run. But for the short term, the volatile currency is the best.
Yeah Al that sounds pretty crap to me, Looks like BT aint for me either. Crypto has a large share of those who want to make more profit in a short time. They do not want to invest in top and stable currencies at Rank King because profits are low; Because the rise and fall of prices is less here. They invest in volatile currencies in the hope of making more profit. However, those who are able to bear the risk are making huge profits in a short time by investing here.
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I believe that it is necessary to adapt each strategy to specific market conditions and be flexible. Your strategies are really correct and should be used, especially for beginners.
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I will put my investment in one coin with strong hold in the market. The assurance to hold on in strong project is good ending than to invest your money in different coins but not sure if you win at the end. One coin strong development coin is much better than five coins without clear prospects.
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2 and 3 strategy is most likely best suited for newcomers to cryptocurrency, buying something like bitcoin and ether their investment risks are reduced. 1 strategy is suitable for more experienced investors who understand this market and can buy more cryptocurrencies
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All right.
These are really classic methods of capital allocation, and in this way you can achieve stability in your monthly income.
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well done mate , great topic
i think the strategy 3 is high risking and investing in one coin only can cause for you a big lose especially when you see all the other altcoins rising but not your currency , so i think going for the strategy number 2 which is buying two altcoins or more can be less risky and more profitable .
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Over the course of several years of being in the cryptocurrency market, I came to the conclusion that the most acceptable 2 investment strategy
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I believe that it is necessary to adapt each strategy to specific market conditions and be flexible. Your strategies are really correct and should be used, especially for beginners.
Very well said. A strategy, without adaptation, to the current status of the market, will lead to failure. It needs constant monitoring, and adjustment.
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Everyone has their own strategy in Cryptocurrency to get the desired profit. What you suggest is true, but it will not be used by everyone forever. I also have my own strategy in achieving profits in this Cryptocurrency.
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An investment strategy, which of course is also widely used by many people, is indeed spreading investments in several coins, because this will reduce the risk and also can always trade and make a profit.
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1) Have a diversified portfolio that is weighted by each crypto's market cap. This should resemble similar price action to the "total crypto market cap" chart.
This is the best portfolio diversification I think. DO not put all funds in one basket because it is too risky f the coin is really dropped. In this case, we must take promising coins that have great trading volume. But not for the dead coin or shit coins included
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Everyone has their own strategy in Cryptocurrency to get the desired profit. What you suggest is true, but it will not be used by everyone forever.
Of course it will not be used by everyone forever, because strategies always change depending on current market conditions, cryptocurrency development is very fast, many new projects continue to appear, projects that do not develop will be left behind by investors, so the portfolios and strategies used today will definitely different in the next few months, these are things that investors should do in order to get maximum profit for investing in the right project.
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In my opinion it is a very simple strategy in the crypto world, if the price goes down then buy and if the price goes up then sell, and also choose the top 5 coins in the marketcap to invest and that is very effective in a strategy in the crypto world.
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Many disagree on where it is possible to make a profit by investing in civilization. So many people now consider Bitcoin to be risky for investment. Because the price suddenly goes up, then suddenly goes down.
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In my opinion it is a very simple strategy in the crypto world, if the price goes down then buy and if the price goes up then sell, and also choose the top 5 coins in the marketcap to invest and that is very effective in a strategy in the crypto world.
Yes, the five top coins, are a good investment. Although, it should be a long term investment, because in short term, there is big volatility.
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I invested some money in Altcoin and a bit of BTC, and the value increases significantly, but I still scared about so many hacker victims with their crypto-asset,
Yes You are right, I also scare about so many hacker victims. So we must be careful to save assets.
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To benefit from the cryptocurrency market, one must be aware of various strategies. Anyone can benefit by adopting different strategies for investing. This requires a lot of research. There are many beneficiaries in the market who benefit from years of research and strategy.
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By researching the cryptocurrency market, it is possible to make a profit by investing in different coins. As long as the cryptocurrency lasts on the earth, the cryptocurrency will improve all over the world. Cryptocurrencies will flow throughout the transaction. So it will be possible to earn from the cryptocurrency market.
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I am a personal short-term holder and trader. So, it is better to distinguish my assets into some. Not all of the coins are good for trading and good for short term investments. Dividing coins into some top 20 will be interesting enough because there will be challenges with high risks and also profits.
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One of the strategies that you must remember that never be greedy. It should be applied in trading or investment, you must avoid it if you don't want to have difficulties or fail in crypto business. I know it is not easy to master it or to have no greedy feeling, but you must do it for success.
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I think one need to deal with fear and doubt in order to be able to know which coins that could profitable to invest and as well not be too hasty to buy coins and tokens that has high value increase because there maybe downtrending in those projects in their prices, which may not actually see for me my strategy this year 2021 I want to invest more on New project with good potentials.
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some of the strategies in crypto are that we have to have a personal wallet for long term storage , then if we want to invest understand the risks and dont invest in project that we dont understand and the roadmap is unclear if you want to trade try to trade in a large market with lots of pairs.
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The 2nd point will bring more profit when 1 coin price increases and some other coins decrease in price.
Currently there are many portfolio options such as risking a small portion of coins to get as much annual stake as set by the project developer.
With this system, of course, it will bring great benefits when prices increase in the future
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Distributing risks across multiple assets is indeed the right decision. Because you can always take care of yourself. The main thing is not to save time for analysis.
Yes, this is the most important thing all people should do. Because invest in only 1 asset is bad.
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The most important thing in this Cryptocurrency world is, we have to be careful with our assets or money. Because this cryptocurrency has a very high risk, we have to plan our steps well. Two things that I think are very dangerous in Cryptocurrency are the price Dump and Hackers..
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obviously we have to plan and diversify our investments for example to make 2 or 3 safe like bitcoin, eth and bnb and 2 or 3 more at risk i would focus on pnt, jrt and trx in order to minimize any losses
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obviously we have to plan and diversify our investments for example to make 2 or 3 safe like bitcoin, eth and bnb and 2 or 3 more at risk i would focus on pnt, jrt and trx in order to minimize any losses
Already today, cryptocurrency users are faced with the question of choosing between those or other coins as a long-term investment. No one wants to risk their capital and therefore invests the most in the top-rated cryptocurrencies. Although ripple is a big question today, at least until the problem with the regulator's claim is resolved.
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Many disagree on where it is possible to make a profit by investing in civilization. So many people now consider Bitcoin to be risky for investment. Because the price suddenly goes up, then suddenly goes down.
Yes. looking short term yes. I won't say to look at prices back in 2011, when BTC, costed a round a dollar. Look at the previous ATH, in 2017, when the price, was around 20K/ If you sell today, and leave the crypto world, you will get a whopping profit of around 100%, in 4 years.
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Well I think diversified portfolio for Investment is the best because it lowers the risk of loosing , putting all Investment in one coin can be risky because if there is a drastic drop in that coin it will badly drop the capital of the investor but if the investment is being divided to different coins when one coin dumps the other might be on the rise thereby covering the lose of the other coin.
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I remember i had a lot of tokens and coins during last bull market and to be honest that is not the right thing to do as so many coins can not be managed well by an individual so now i have cleaned up my portfolio and im just holding 3 main coins and im confident they will make me massive profits in coming months and they are btc, eth and trx.
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Cryptocurrencies are more popular and secured than paper money because paper money is the best way of spreading coronavirus and others vital viruses and bacteria.
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Diversifying funds is the best way to manage our cryptocurrency. We can see our portfolio in better ways by using the scale of diversification. However, we must be also careful enough in choosing what cons to be bought and saved in our portfolio. It is better to buy the top coins, moreover for long term investment
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This year I have to diversified in different methods of investment this year 2021 different from my encounter over three years I have been in the cryptocurrency I have loose a lot of money on trying to sell some of my important coins in my wallet I thought of doing long term hodl this time around because I was desperate to sell before now .
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Cryptocurrencies are more popular and secured than paper money because paper money is the best way of spreading coronavirus and others vital viruses and bacteria.
I completely agree with you and therefore they practically do not have fiat, only money on their card or cryptocurrency on their wallet, so I am more secure.
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Point number 3 could only point to two coins Bitcoin and Ethereum, number one is only for serious investors with a wide portfolio, point number 1 has a lot of attraction because there are so many coins in the market that offer huge return, all of them are profitable if you have the best and profitable coin in the market in your portfolio, you cannot go wrong on all these strategies.
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Bitcoin and Ethereum could be the right investment. Maybe some times it is good to concentrate in just two top coins to eliminate the negative thoughts. Bitcoin and ethereum are good for long term investment and can aalso be good for short trading. The trading volume of this two coins is impressive.
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I also have the same strategy as you. Of course, by dividing my investment in several types of coins, I have implemented this most so far. And it is quite helpful.
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I can't choose all of them because I have my own thoughts for the strategy I am using for trading with cryptocurrency.
I also didn't really focus on the signals that all the channels on Telegram gave me and I was just looking for a little gap for the price changes between the ups and downs of a cryptocurrency on Binance.
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All of those has their own positive and negative. However, I personally still believe that we do not put our money into one coin only. It is to minimalize the risks of losing. Imagine if we only put it in one token, when it is a high price, we can really have high profits. but when it is dumped, it will be very risky also losing much money once.
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I can't choose all of them because I have my own thoughts for the strategy I am using for trading with cryptocurrency.
I also didn't really focus on the signals that all the channels on Telegram gave me and I was just looking for a little gap for the price changes between the ups and downs of a cryptocurrency on Binance.
You have made your decision correctly, a trader should not trade based on the trading signals they get. Correct trading is when the trader trades based on his own analysis.
But don't forget to create a portfolio, OP has explained the correct outline of the portfolio, although it is for investment but it can also be used for trading, because trading with investment is not much different.
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Scalping is a strategy of taking advantage of small market movements, quickly entering and exiting positions during a day, or maybe even an hour. The key is making as many successful small trades as possible while avoiding losses - you don’t need high returns per trade, you should be rather aiming to maintain a higher win/loss ratio. Usually, the size of winning and losing trades is nearly the same, a very small percentage of the whole portfolio, thus you have to win more often to be in profit. Some strategies allow to lose the majority of trades, but still make money by winning only a couple of big trades. Scalping is totally opposite.
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All of those has their own positive and negative. However, I personally still believe that we do not put our money into one coin only. It is to minimalize the risks of losing. Imagine if we only put it in one token, when it is a high price, we can really have high profits. but when it is dumped, it will be very risky also losing much money once.
There is advantage and disadvantage between diversify investment and only one invest. We should take the position where advantages is greater than disadvantages. Should we follow the positive side and not on negative. Let us not put so much money if we cannot to afford to lose them. Just invest the money that you can afford lose just in case the market turn into red position.
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Cryptocurrencies are more popular and secured than paper money because paper money is the best way of spreading coronavirus and others vital viruses and bacteria.
I completely agree with you and therefore they practically do not have fiat, only money on their card or cryptocurrency on their wallet, so I am more secure.
Yes, that's right. Paper money will spread Corona virus, we must be careful..I think crypto currency is more safety and really good for transaction while pandemic. It is the reason why many people already invested in crypto currency now.
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Diversify your trades. Combining Bitcoin, Ripple, Litecoin, Ethereum, and other cryptocurrencies will help reduce the daily risk associated with a specific coin.
Minimize trading costs.
Watch Trading times.
Follow Bitcoin News.
Use technical analysis.
Use stop losses.
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Many of us joined cryptocurrency through hunting bounty which now leads many of us becoming an investor in cryptocurrency but as of that time many are just desperate to sell off their token the moment they receive their token because of doubt and fear weather the project will succeed in the cryptocurrency but now as an crypto investor will now choose to hold some potential token for longer periods because of the innovations that has come into crypto industries.
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Interesting thread, I have read some comments, some made sense to me and some are just airing opinions that aren't necessarily. The above information disseminated by OP does not guarantee the safety of your investment. They are bound to external factors such as problems that are beyond team control. Kucoin was hacked last year and some potential projects bled so badly due to the attack on the exchange.
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Every strategy will always include both negative and positive sides. For this strategy, I personally always use the ways of diversification. It means that I don't put all money into one coin only Which is too risky. I always put some money into some top coins in order to get more profits and minimize the risks.
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I think you have to be patient to be profitable in the cryptocurrency market.
Not all people can be patient to wait for profitable, so not all people want to hold their coins for the long term. I prefer to keep my coins on wallets for the short term. I think it will be safer to avoid big losses and see the chance to buy other coins. I assume we must take advantage of the current hype coins,
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My strategy in Cryptocurrency to get profit is only to trade, invest and hold only top ranking coins such as Bitcoin, Ethereum, BNB, Polkadot and others. I often participate in Bounty and Airdrop to get money for free, usually when I get a token from the Bounty I will sell it and I will buy the Top coins. That's my strategy, and I'm sure everyone has their own strategy for making a profit here.
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The strategy that benefits anyone becomes a good strategy for himself.But it may not be fit for others .Aims of all strategies is to get profit so try to catch crypto in low rates and try to sell at high levels.But it needs some patience and knowledge about that project.
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My strategy in Cryptocurrency to get profit is only to trade, invest and hold only top ranking coins such as Bitcoin, Ethereum, BNB, Polkadot and others. I often participate in Bounty and Airdrop to get money for free, usually when I get a token from the Bounty I will sell it and I will buy the Top coins. That's my strategy, and I'm sure everyone has their own strategy for making a profit here.
So am I, my strategy in crypto is trading, and hold. Because I think ai don't have other strategy. Buy more and sell when high is the basic factor. Trading is the best way to get profit, if you have knowledge about it.
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Cryptocurrencies are more popular and secured than paper money because paper money is the best way of spreading coronavirus and others vital viruses and bacteria.
I completely agree with you and therefore they practically do not have fiat, only money on their card or cryptocurrency on their wallet, so I am more secure.
Yes, that's right. Paper money will spread Corona virus, we must be careful..I think crypto currency is more safety and really good for transaction while pandemic. It is the reason why many people already invested in crypto currency now.
Only cryptocurrency will not be able to pay in the store. But there is also a cashless payment. Bank cards have been invented for a long time. Investments in cryptocurrency are only needed to multiply fiat money. We can only pay with fiat.
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I totally agree with some of these strategies. Because this is the strategy that I have been using in crypto investing. And so far it has been quite productive.
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The number two strategy I usually do is investing more than 1 coin. Usually my choices are major coins like Bitcoin, Ethereum, BNB, DOT and others, And I also choose Invest in new Crypto coins which are very cheap. In this way I can get a decent profit, but sometimes I still lose because I made a wrong prediction.