Crptocurrency
7 Successful Strategies For Cryptocurrency Investment

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Many people talk about large games in bitcoin investment but are actually gambling with their money. This is not only dangerous, but it is difficult to recreate even the ‘fortunate successes’ they’ve had, and they repeat mistakes in the expectation of success, but instead record losses rather than profits.
This is not the way to approach any investment, let alone one as unpredictable as cryptocurrency. Crypto investment is a serious business, and it would be wise to act as if you are aware of this.
In this piece, we’ll look at game-changing tactics for improving your crypto investment game and putting you in the top 1% of cryptocurrency earners.
The Best Strategies To Use In Cryptocurrency Investment In 2023
To succeed in cryptocurrency, you must operate with precision, a plan, and a defined strategy. A plan and strategy will assist you in growing your cryptocurrency investment and portfolio.
As easy as it may appear to make money in crypto, you will need some reinforcement before entering the market, which is known as your crypto investment plan. These are the seven most effective crypto investment strategies.
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Invest Prudently – Put In Only What You Can Afford
This is the most basic guideline in any investment, including cryptocurrency. Investing without first determining your risk tolerance may result in irreversible loss. You are well aware of the volatile nature of the cryptocurrency market. Even seasoned investors do not risk more than they can afford to lose, so follow this rule at all times.
Sure, there’s always the urge to put in more effort for a larger profit, but that’s fear of missing out (FOMO) at work – don’t succumb to it.
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Make Your Portfolio More Diverse
You may believe that sticking to one currency to minimize risks is prudent, but this is not the case. Owning multiple coins will distribute your investment among multiple projects, allowing you to limit your losses to a minimum.
This is because a terrible season for one coin may be a good season for another. Assume you had all of your eggs in one basket. You’d lose more money all at once. But don’t diversify just for the sake of diversifying. Make sure you’ve done your homework on the cryptocurrency and are confident in its long-term viability.
You can also look at investing in non-crypto blockchain projects. Some examples include Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), and so on.
Finally, you do not need to limit yourself to just one exchange. Examine other exchanges that list different coins with promising futures.
Read Also: Bitget to Invest in Indian Blockchain Startups under its $10M Fund
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Do Not Keep All Of Your Cryptocurrency In A Single Wallet Type
Using multiple wallets is more of a safety precaution than an investing strategy. But what good is all that effort if you lose money at the end of the day?
Two types of crypto wallets fulfill distinct functions:
Hot wallets are internet-connected and may be accessed through the normal transaction apps. Cold wallets do not have internet access. You can use private keys generated by specialized websites to gain access to your hardware devices.
So, how do you get started?
If you often trade cryptocurrency, a hot wallet is great for storing transactional amounts of cryptocurrency. That’s the crypto you’re about to sell. However, for long-term investments, utilize a cold wallet to store your money offline.
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Increase Your Investment In Liquid Crypto Assets
A liquid asset is one that can easily be converted to cash while retaining its value. Knowing when to enter and exit the crypto market is critical given how quickly it moves. You can accomplish this rapidly with a liquid asset without compromising some of the monetary value.
So, before you invest in cryptocurrency, there must be enough demand and supply so that you may easily buy and sell when you profit. You don’t want to acquire an asset and then wait for it to sell, putting yourself at the mercy of the market.
As expected, Bitcoin is the most liquid cryptocurrency. One method for determining a coin’s liquidity is to examine its trading volume.
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Take Advantage Of Crypto Volatility
If you know how to handle the crypto market’s price volatility, you can use them to your advantage. As a cryptocurrency trader, you can buy when the price is low and sell when the price is high. Don’t perceive volatility as a threat, but rather as an opportunity. To succeed, however, you must pay close attention to the market.
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Withdraw Your Profits On A Regular Basis
Prior to investing, determine your objectives. This will allow you to be more determined when it comes to taking your profit. When it comes time to depart the market, some traders are sometimes at a crossroads because they are unsure if the price will rise or fall. When you know when to remove your winnings, you will maximize your investment.
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Leverage Dollar-Cost Averaging
Many investors employ dollar-cost averaging as a hedge against volatility. It is when you invest a set amount on a regular basis rather than all at once. This works because you invest the same amount of money whether the market is bullish or bearish. When the market is down, investors have a better chance of getting more for less.
It’s an excellent method to remain objective about your investment and stay focused on your investment objectives.
Conclusion
That’s all there is to it, crypto aficionados. These tactics will provide you a competitive advantage and greatly boost your cryptocurrency investment. Always be cautious and conduct thorough research before investing.
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Binance Lists ChainGPT (CGPT): Unlocking a New Era for AI-Powered Blockchain Solutions

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$88K Critical for Bitcoin Momentum

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Bitcoin’s price trajectory is at a pivotal juncture, with $88,000 emerging as a key level for sustaining market momentum, according to on-chain analytics firm Glassnode. Using the UTXO Realized Price Distribution (URPD) metric, Glassnode emphasized the significance of the Short-Term Holder (STH) cost basis, noting minimal trading volume below this threshold.
The $88,000 level serves as a critical psychological and technical support, and a decisive loss could pave the way for further downside. This article explores the importance of this metric and what it could mean for Bitcoin’s future price movement.
Understanding Bitcoin’s STH Cost Basis
The Short-Term Holder (STH) cost basis represents the average price at which recently acquired Bitcoin has been purchased. This metric is essential for analyzing:
- Price Momentum: Indicates the health of recent buyer confidence.
- Support Levels: Highlights crucial price points where short-term investors are likely to defend positions.
At $88,000, the STH cost basis underscores its significance as a level where short-term traders might capitulate if breached, potentially triggering a larger sell-off.
The Role of the URPD Metric
Glassnode’s UTXO Realized Price Distribution (URPD) metric maps the distribution of Bitcoin trading volumes across different price levels. Key insights from the current analysis include:
1. Minimal Volume Below $88K
- Glassnode’s data reveals limited trading activity beneath $88,000, suggesting weak historical support in this range.
2. Vulnerability to Downside Pressure
- A breakdown below $88,000 could lead to accelerated selling, as short-term holders exit positions to minimize losses.
Why $88K Is Critical for Bitcoin
1. Psychological Benchmark
- Round numbers like $88,000 hold psychological significance for traders, influencing decision-making and market sentiment.
2. Technical Relevance
- The STH cost basis aligns closely with support and resistance levels derived from historical price action, making it a reliable marker.
3. Momentum Indicator
- Holding above $88,000 would demonstrate resilience, while a breach could signal a shift in momentum toward bearish conditions.
Potential Scenarios Based on $88K Level
1. Holding Above $88K
- Sustaining this level could reaffirm Bitcoin’s bullish momentum, encouraging accumulation by both short-term and long-term holders.
- Positive macroeconomic news or institutional support could bolster price stability.
2. Breaching $88K
- A decisive loss of $88,000 might lead to panic selling, increasing volatility and pushing Bitcoin toward lower support levels.
- Traders may target $85,000 or lower as the next critical support zone.
Market Sentiment and Influences
1. Institutional Activity
- Institutional investors closely monitor key levels like $88,000, adjusting strategies based on market strength or weakness.
2. Broader Economic Factors
- Macroeconomic elements, including interest rate policies and inflation data, continue to impact risk assets like Bitcoin.
3. Short-Term Trader Behavior
- As the primary holders at this cost basis, short-term traders play a pivotal role in determining Bitcoin’s near-term price movements.
How Traders Can Respond
1. Monitor Key Levels
- Keep a close watch on Bitcoin’s behavior around $88,000, as this level is crucial for gauging momentum.
2. Set Stop Losses and Alerts
- Traders should establish clear stop-loss levels to minimize risk in case of a breakdown.
3. Consider Accumulation Opportunities
- If Bitcoin holds above $88,000, it could present a buying opportunity for those confident in a bullish continuation.
FAQs
1. Why is $88,000 significant for Bitcoin?
The $88,000 level represents the Short-Term Holder (STH) cost basis, a critical indicator of price momentum and market confidence.
2. What happens if Bitcoin drops below $88,000?
A loss of this level could trigger selling pressure, as short-term holders exit positions, potentially leading to further downside.
3. What is the URPD metric?
The UTXO Realized Price Distribution (URPD) metric tracks Bitcoin’s trading volume at different price levels, highlighting key areas of support and resistance.
4. How does $88K influence market sentiment?
Maintaining this level reinforces confidence in the market’s bullish momentum, while losing it could shift sentiment toward bearish expectations.
5. What should traders do at this level?
Traders should monitor Bitcoin’s performance around $88,000, set stop-loss levels, and consider accumulation if the level holds.
Conclusion
The $88,000 level is more than just a price point; it’s a pivotal marker for Bitcoin’s momentum and market sentiment. Glassnode’s analysis underscores its significance as the Short-Term Holder cost basis, with the potential to dictate Bitcoin’s next move.
Whether Bitcoin sustains this critical level or breaches it will determine its trajectory in the coming weeks. For traders and investors, staying vigilant and adapting strategies to this key metric will be essential in navigating Bitcoin’s dynamic market.
To learn more about the innovative startups shaping the future of the crypto industry, explore our article on latest news, where we delve into the most promising ventures and their potential.
Disclaimer: The information provided is not trading advice, Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
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Mantra Partners with UAE Real Estate Giant Damac to Tokenize $1B in Assets

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