What Strategies can Maximize the Benefits for a Short Term Investment in Cryptocurrency?!
Many people may not want to invest in cryptocurrency for a long period of time. They just want to make quick profits in the short term. In Short-term investment, compared to long-term investment, the risk is higher! You need to pay close attention to the price fluctuations of cryptocurrencies.
The following article is designed for short-term cryptocurrency investors. Following investment strategies may help maximize risk avoidance and increase returns.
- Bitcoin (BTC) and Ethereum (ETH) Investment Ratio: 10% to 25%
Bitcoin and Ethereum are the main drivers of the cryptocurrency market, and markets often reflect their performance. These coins have laid a solid foundation for other portfolios. However, in the short- to medium-term, the ATC and ICO will exceed the two cryptocurrencies, so it is necessary to control the ratio of Bitcoin and Ethereum investment.
- Altcoins investment ratio: 25% to 55%
Coins such as Monero, Omisego and NEO have experienced rapid price increases over the past few months and have outperformed Bitcoin and Ethereum. Altcoins has huge revenue potential.
Newer invest in projects or coins that do not have a lot of traction.
- ICO ratio: 25% to 55%
Initial coin offering may be the biggest opportunity to get giant returns, of course, they will also bring higher risk!
However, for short-term investors, they should occupy a large part of the portfolio.
Dividing the investment into multiple ICOs can increase the success rate.
- Swing Trading and/or Day Trading: 10% to 15%
Trading currencies with higher volatility, such as Lisk (LSK) and OmiseGO (OMG) with high daily trading volume, are good choices for swing and day trading. Traders should benefit from price fluctuations and should use some leveraged trading options offered by top exchanges. More experienced traders should use short orders to benefit from falling prices.
- Take advantage of buy and sell strategies
Investments are projected to grow in the short to medium term. These projects can immediately realize the benefits.
- When you trading altcoins, make profit as often as possible
And when the profits are realized, the funds have to be transferred in to other altcoins or ICOs. This helps maximize investment returns and maintain portfolio activity.
- Prepare for failures and focus on big gains
Since investing in high-risk activities such as ICOs and day trading, it is almost inevitable that it will fail from time to time. Sometimes, larger profits will offset losses and you will learn to stop it in time!
- When investing in ICOs, look for projects that provide good returns
Popular projects should receive substantial benefits in the short term. The value of ICOs for teams that are actively involved in transactions will also grow rapidly.
Short-term investment risks are relatively high. It is recommended that investors consider doing short-term assignments and do their homework to see if they can afford such risks.
Before investing do not forget to DYOR!