Jan 7, 2021
Bulls, Bears, and Caution: Long-Term Winning on Cryptocurrencies
It’s never becoming easy to make good returns.
The thrill of bull and bear runs might make you intimidated. But if you know what to do, you can make huge bucks by just buying specific coins. Here we’ll discuss various options on how you can have good returns.
There are generally different types of people that here to make profits: traders, investors, or people that are both traders and investors. Despite they vary on the time holdings, they aim to make a profit under a specific coin. Today, we’ll discuss how to win long-term on cryptocurrencies.
1-Strictly analyzing the coins
The first step is to strictly analyze the coin itself. This analysis includes its features, ecosystem, macroeconomic developments, and whether the coin would fill a need. To analyze the coin, there are some questions to be asked:
-what blockchain is?
-general blockchain ecosystem,
-what are the technical features of a coin?
-what kind of ecosystem does the coin promises to its investors?
-what are the macroeconomic developments around the world?
- what use does this coin offers to me?
-how advantageous they are when compared with their competitors?
These questions will determine whether a coin is worth investing in the long-run.
Now let’s look at trading and investing:
Trading
In trading, you tend to keep your primary capital up to make a good profit. A person could do multiple kinds of trades that depend on a certain amount of time. Because these kinds of positions are dependent on time, technical analysis is necessary to determine the price. In short, a trader is dependent on price movements to make profits.
Investing
In investment, value is what you get and the price is what you pay. Long-term growth potential becomes a key factor over price movements. This is the moment where you focus solely on fundamentals. As soon as you have found a coin with good fundamentals, you can go and invest in this coin. Even more, never forget to buy when you encounter price corrections. Even more, you can do trade to maximize your principal capital if you like. But the disadvantage lies in where you might not be able to catch certain price points. But as you keep on great coins, there are no worries about whether price action occurs. If an investment is a high quality, it’ll give good returns in the long run even with small amounts of money.
To clearly set out the boundaries, trading is more focused on time and price movements, while investment is generally time-consuming, with lots of fundamental research is involved in determining the long-term value it’s holding. Moreover, you can have heavily concentrated positions on long-term investment while it’s not really safe to have heavily concentrated positions in trading.
What do you think about the bull run and bear run? Do you think they’d affect how people think about cryptocurrencies? Share your thoughts and experiences in the comments section below.
