Best Ways to Grow Cryptocurrency – A simple Guide


The best way to grow cryptocurrency is to learn how to invest in cryptocurrency.

You may be thinking is not the best time to invest, but really, you have to be discipline enough to hold on to the money you earn.

Investing allows you to significantly grow your cryptocurrency over time.

Example:

If an amount of $5,000 is deposited into an exchange at an annual interest rate of 5%, compounded monthly, with additional deposits of $100 per month, the value of the investment after 10 years is $23,827.28

If you decide to invest without monthly addition, your investment after 10 years with compounding will be: $8,235.05

Why you should invest

Thinking about cryptocurrency investment for the first time may look like such a daunting prospect, especially in the absence of investment advice. The good news is that times have changed now and there is more information than you might consume and there are fewer entry barriers than before.

For instance, Binance, the leading digital exchange, has over 30 million investors who can buy Bitcoin, Ethereum, Litecoin, Binance cash, and Bitcoin Cash at the snap of a finger. There are many market investment funds that give potential investors easy access to different cryptocurrencies. There has never been a time when investing in cryptocurrencies was so straightforward for anyone who didn’t know where to start.

When should you invest

Now that you know why you should invest, when should you invest?

Now is the best time to invest. Right now.

Investing involves risk. we’re all heard about investors who lost half or almost all of his/her money to scam. You can never eliminate risk entirely.

You can significantly reduce risk if you invest wisely.

Short-term Investment

Should you invest in cryptocurrency for the long-term or short-term? well if you look at the growth of cryptocurrency over the past 7 years, it’s clear that holding cryptocurrency seems like the best option.

What is short-term investment?

short-term investment is an investment that’s expected to be held for less than 12 months.

Short-term investing in crypto involves buying up bitcoins when their price reaches a low point and then holding on to it, waiting for the price to go up enough to fit your investment strategy.

When the price is high enough, you sell the bitcoins and pocket the profits. You use that money to buy more bitcoins or some other cryptocurrency to flip (sell) when the time is right.

You have to know a lot about the cryptocurrency market. Also, you must follow every piece of crypto news religiously. You have to be able to predict how relevant news will affect bitcoin price.

Long-term Investment

Investing in bitcoin for the long term would be similar but also different.

This simple means to hold on to your investments. Instead of sitting at your computer all day analyzing charts-you can sit back relax and wait for the price of Bitcoin or cryptocurrency to rise.

You have to hold on to bitcoins for more than a year before you sell for it to count as a long-term bitcoin investment. However, you still need to follow the news to invest in bitcoin for the long-term.

When you invest in bitcoin for the long-term, you are only interested in the long term. Years and decades instead of hours and days.
After investing in bitcoins long-term, you don’t have to sit at your computer tracking the price. You won’t be selling anyway, so what’s the point?

Trading

Many people think of trading as analysis, patterns, and technical modeling, but the trader work is actually a subjective assessment of what is happening in the market.

While you may want to hold bitcoin or cryptocurrency for the long-term, you may also wish to trade them for other cryptocurrencies or fiat currency. This is the fastest way to grow your cryptocurrency, but also riskiest.

To trade for fiat currency, you can simply sell them at the current exchange rate on the exchange you bought them at, like Binance or Kucoin.

Conclusion

Investing in cryptocurrencies is hard, it’s difficult, it’s risky. Once you decide that investing in bitcoin is something you’d like to do after days and weeks of careful research, take a sum of money you would not miss if lost.

Never take out a loan to invest in cryptocurrency because that is a great way to ruin your life. A bitcoin investment is best made with the extra cash you can lose.

Best Ways to Grow Cryptocurrency – A simple Guide via @9jaInformative/
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