Yes, I don't type wrong, in the crypto community the term for log times investment is known as HODL and I will tell you why.
But first, I decided to write this article because some Twitter friend have asked to me about the better strategy to invest in crypto. Unfortunately the answer is depends. Yes, depends of your investor style.
So let's talk about investment in cryptocoins dividing the style in two.
1. TRADE - Bye and sell according with the market
It is difficult to compare the crypto market with regular stock market or even forex (regular currencies market). First because it is in the beginning, what brings new rules every day, mainly related to the decentralized aspects of the technology.
And second because the size and amount traded in it is yet very small in comparison with stocks, for example. While we are today, 29 Apr 18, with a market of 427 BI in crypto, the stock market have a global size of 69 TRI (and maybe that's why crypto is not yet very attractive to some wales).
But not taking in considerations this differences, the TRARE strategy is nothing more than using all the techniques already mature used in stock, currencies, gold, etc with crypto. Lots of experienced trades migrated or add Bitcoin and other coins to their portfolio.
But the point is that this strategy demands time and technique. To trade successfully on daily bases or even weekly bases you should study graphic analysts to know when buy and when sell, and fundamentalist analysis to know what to buy. Sure you all could follow blogs and Twitter's advices, but you could be always a little late to some great moves.
Because of the high aggressive and volatil variation of the crypto coins (while in the regular stock market a variation of 5% a week is commemorated and a variation of -5% is cried, in the crypto -+30% is not news any more), it have delivered a great return.
2. HODL - Hold for your dear life
While trade demands the knowledge mentioned, to bye and keep the coins in our wallets we just need to be an enthusiast, tech lover and like to be involved on new things.
Geeks, hackers, developers and all the tech community was the first to be on crypto, and not investors and traders. And again, while the traditional stock market can bring an annual return of 20-50% , the crypto market yet brought +1000%. What one offer in one year the other offer in one month. Even with the grate fall of Jan2018, the min price of Bitcoin (+- 6.000 USD) was the price of September-October 2017.
We have experienced too ICOs investments that delivered a return of 500-1000% after some months.
So for all this features also with a low investment value the crypto marketing have offered a good retirement account for those that get the opportunity now and are patient to HOLD FOR LIFE.
My personal experience is try to mix a little this two strategies, making good investments in ICOs and new altcoins, but also trading a little when DIP.
I hope this article help you to find your styles.
If you enjoyed don't forget to leave a vote and share with others.
Thanks
Fabio
Crypto trader and enthusiast.
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