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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. 

1. 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.  

2. 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

3. 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.  

4. 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.  

5. 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.  

6. 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.  

7. 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.