The two main strategies when it comes to investing in cryptocurrencies:

1.Day trading

  • follow the latest trends and news, read the forums and trader communities, watch the signals, learn to analyze and understand related events.
  • buy when it goes down, sell when it climbs up
  • use trading platforms that provide higher Leverage
  • get better at predicting and reading trends

Cryptocurrency prices are very volatile, so if you are good at analyzing the market, cool hearted, calculated and an overall intelligent person you can become very successful as a cryptocurrency day trader.

However, personally I prefer the second option:

2. Investing

  • first, understand the basics of Blockchain Technology and Smart Contracts, learn to read White Papers of different cryptocurrencies and understand their principles
  • Do a detailed research on each new crypto currency you plan to invest in: review their white paper closely, research the team behind it, check if they already have any proof of concept implementations, or projects, how solid is their plan.
  • Learn to inspect new Cryptocurrencies by looking at their fundamentals: what problem does it solve? How good is the team behind it? Are they in a good position to implement their plans, is the market ready for it? What is their competition? Is a new currency/cryptocoin actually needed to solve the problem?
  • Pay attention to the market as well: what do the experts say? What’s the main opinion about it on different communities and forums? Is their timing good to success in the market?
  • Learn to recognize and quickly discard scams and coins that do not have any real propositions, but simply focus on generating a lot of hype in order to sell
  • get good at managing your finances and knowing how much to invest in each new coin, as you would expect to hold the funds in there for a longer period to get the most benefits

*Third option (simple) — if you do not want to spend any time on it — simply decide how much money you are willing to risk and buy bitcoin with it. Then, forget about it and go on about your business. Check back in a few years and be pleasantly surprised!


Originally published at www.quora.com.