There are various ways how you can invest into cryptocurrencies or crypto technology (blockchain or alternatives like the tangle by IOTA). We will give you more investment strategies, each one has its benefits or risks and fits a different investor profile. You just have to decide for yourself which one fits you. The first investment strategy
is focused on the long-term benefits of this technology and not on short-term gains. The idea behind it is that cryptocurrencies and the blockchain or alternative technology is still in it’s nappies – it’s early days. There will be a lot of development, improvement, new technologies and services.
With this in mind, you can argue that it doesn’t matter what happens to the price of let’s say bitcoin or ethereum or any other cryptocurrency, in the short term. What matters is that you enter this market as soon as possible and then ride it out. I would compare it to the internet (and subsequent dot.com bubble). If you invested in various companies back then, you would be a very happy investor today. The key was to invest into the right ones.
Therefore we can summarise this investment strategy in one sentence as:
By long – think at least several years. You can also add to the positions regularly (dollar cost averaging).
If you buy the right cryptocurrencies or assets – meaning ones that won’t be forgotten by time and will still be here in several years, with their usage and hence price increasing – you stand a good chance of strong returns. Some of the assets might not perform as well as the others, some might still be forgotten – that’s why it’s better to buy more various assets / cryptocurrencies / technologies.
Whether we are seeing a blockchain / crypto bubble or not, if you choose your investments , there will be some that will make it out of the bubble and profit. Same as during the dot.com bubble – many companies failed, but some didn’t (Google, Facebook, Paypal, Ebay, Amazon etc). If you have invested in others and at least one of these, you are probably still a happy investor.
What do you think about this investment strategy? Let us know in the comments!
If this crypto investment strategy isn’t for you, maybe our other strategies here will suit you better.