12.4 C
Munich

FOR HOW LONG SHOULD I INVEST IN CRYPTOCURRENCY TO EARN A GOOD PROFIT

Must read

How To Play Retro Bowl Unblocked Online: Full Guidance To Play

Retro Bowl Unblocked 76 is a famous old fashion American Football Game, better known as NFL, and is always an on-demand game. The main...

Unblocked Games WTF: unblocked games wtf 1v1.lol

Hello, readers today we are talking about Unblocked Games WTF. It is a platform where one can see a number of JAVA and modern-technology...

10  Most important things that you need to know about purchasing the yellow sapphire gemstone

At the time of purchasing the yellow sapphire stone, it is important for people to be clear about a good number of points to...

Unblocked Games 66 – Play The Best Games Online

Hello readers, today we are talking about Unblocked Games 66. It is a world-famous website with a collection of multiple games to play. The...

Introduction

The cryptocurrency market is pretty volatile in nature. Different investors aim for different timeframes to make profits in this industry. However, there is an unsaid rule of investments, which states that the higher the rewards, the more risk you should prepare for. The cryptocurrency market is highly unstable. Even though experts have succeeded in predicting market trends most of the time, several unpredictable events have influenced the market from time to time. However, one must also keep in mind that every time the market value of a currency goes down, it climbs back up. Therefore, one must make decisions regarding investments with patience. Let us talk about different timeframes that you can take for reference while investing in cryptocurrency.

Cryptocurrency investments aiming for profits within days

If you want to indulge in short-term trading but want to avoid sticking to the screen monitoring the market dynamics all the time, this timeframe is for you. You can hold on to your crypto assets overnight and trade when you deem the profits to be enough. A common strategy of trading within this timeframe is range trading. When investors follow this strategy, they do not follow the trends and set a justified range of its price. When the price is the lowest, investors buy it, and when it hits the highest point of the range, they sell it. Short traders go the opposite way while investing in this timeframe.

This strategy is also referred to as swing trading, and it is to be noted that swing trading lies in the gray area, as the taxation on swing trading is very dodgy. The taxing on your currency would be optimum if you hold on to your cryptocurrency for more than a year. However, you can try swing trading if you do not intend to hold on to your possessions for such a long time.

Cryptocurrency investments aiming for profits within weeks

This type of trading is often referred to as position marketing in the traditional markets. The timeframe for such investments is shorter than long-term trading. However, it is longer than that of swing trading. Position trading is the least risky form of short-term trading. Investments following this strategy tend to identify the market trend and ride it if it goes up or down until the prices hit resistance or they hit support. A psychological barrier that marks the highest point that the value of a currency can reach is called resistance. The support level is a point, at which the price of a currency hits the lowest point, and the market cannot crash any further. You can take certain steps to adopt this strategy if you are new to it. The first step includes the technical analysis of a currency to identify its trends and buy at a pullback within an uptrend. Hold on to your coins for some time, and sell it when the market hits a resistance.

Cryptocurrency investments aiming for profits in the long term

There are several coins, including Bitcoin and Ethereum, which show a promising future. These coins have shown humongous rates of growth in this decade. Investors have earned a lot of fortune by putting their money into these currencies. Trends and analysis suggest that they will keep growing in the future and putting money on them is a safe bet. Many investors buy currencies with a promising record and endorsement and let these investments stay like that for a long time. This strategy presents the investor with the lowest risk to reward ratio, out of all the strategies mentioned above.

Therefore, it is important to decide which strategy suits you the best and set a period based on the total amount of your investments and upon which currency you are willing to invest. Different timeframes have several benefits and drawbacks, and a thorough analysis of the market will allow you to figure out which one is the best for you. One should always be willing to take risks. The safest of strategies still involves some risk.

- Advertisement -

More articles

- Advertisement -

Latest article

How To Play Retro Bowl Unblocked Online: Full Guidance To Play

Retro Bowl Unblocked 76 is a famous old fashion American Football Game, better known as NFL, and is always an on-demand game. The main...

Unblocked Games WTF: unblocked games wtf 1v1.lol

Hello, readers today we are talking about Unblocked Games WTF. It is a platform where one can see a number of JAVA and modern-technology...

10  Most important things that you need to know about purchasing the yellow sapphire gemstone

At the time of purchasing the yellow sapphire stone, it is important for people to be clear about a good number of points to...

Unblocked Games 66 – Play The Best Games Online

Hello readers, today we are talking about Unblocked Games 66. It is a world-famous website with a collection of multiple games to play. The...

Factors To Consider When Opting for A Collection Agency for Small Business

It would help if you made every effort as a small business to maximize your profits. Therefore, it's critical to take action to recover...