So, it’s been really interesting. This past weekend, there was a significant pull back in the cryptocurrency market. Bitcoin, along with all of the altcoins dropped in price rather rapidly. But that wasn’t what surprised me. After all, markets and currencies go up and down all the time.
What was kind of shocking was that some rather well-known social media cryptocurrency evangelists seemed to be panicking. The message was that things could get ugly with prices going even lower. Of course, they were wrong and the cryptocurrency market (Bitcoin and the rest) have since rebounded.
I was really surprised that these so-called experts seemed much more worried than I was. I believe the reason I wasn’t panicking goes back to my own personal crypto investment strategies. First off, don’t ever invest money in the crypto market that you can’t afford to lose. And second, I really believe in having two different strategies or approaches when it comes to cryptocurrency.
While the goal to make money is the same, I like to have both a long and a short-term strategy. For my longer-term investments in cryptocurrency, I stick with the more established, larger cryptos (Bitcoin, Ethereum, Litecoin, Bitcoin Cash). When I buy these cryptocurrencies, my plan is to hold them for a bigger profit in the future.
For quicker, short-term profits, I look for the cheaper, less established cryptos. These are the cryptocurrencies that I actively trade—with specific sell strategies.
While I encourage you to do your own research and formulate the strategy that suits your goals the best, my message here is to remember your long-term goals, be smart about what you invest in and how much you invest, and don’t panic at the first sign of a drop in prices—it could just be a great buying opportunity!