The Four Pillars of Crypto Investing in 2023
With that in mind, let’s take a look four basic pillars of crypto investing which can position you for long-term success.
1. Invest for the long term instead of trading in the short term
Losing money when prices are falling is one thing, but losing money when the market is going nowhere is even more frustrating.
After a crypto bear market, the market would usually move sideways for several months before resuming a positive run. Short-term traders find it extremely difficult to make money during this period, so many are tempted to over-trade or use leverage to make bigger short-term gains. This strategy often results in a “death by a thousand cuts”, where you lose small amounts of money over time and underperform the market.
So how can you play this?
Dollar cost average refers to the strategy of gradually accumulating your chosen investment at fixed intervals over time (such as monthly purchases), which has been proven to outperform 99.99% of traders.
This strategy allows you to accumulate a cryptocurrency (regardless of price) and gradually increase your holdings in anticipation of the beginning of a new bull market. If you choose a good diversified investment (Revix Top 10 Bundle), you can be rewarded when cryptocurrency prices finally start to rise.
2. Construct your crypto portfolio in a smart way
A goal without a plan is nothing more than a wish. Bear markets are ideal for planning. It is far better to spend time planning your ideal crypto portfolio when prices are down than to wait for the market to turn and quickly put together a “it will do” portfolio.
Since the crypto market is still young, crypto bull runs are usually shorter and sharper than for traditional asset classes (stocks, bonds, commodities). When bull markets begin, they often catch investors off guard, resulting in Fomo (fear of missing out). Without a clear plan in place, you are less likely to succeed and may miss out on more lucrative opportunities.
So what should your portfolio look like?
It all comes down to your risk tolerance.
- Secure: For those who are more risk averse, you may want to stick with bitcoin and ethereum, the two largest networks and market capitalizations, as well as the most tried and tested cryptocurrencies.
- Risky: If you are willing to accept more volatility for potentially higher returns, consider adding riskier altcoins to your investment portfolio, such as solana or cardano.
- Best: While these two options are viable, there is a better option: diversification.
Diversification simply means spreading your investments. By implementing this portfolio strategy, you can enjoy the returns of cryptocurrencies without the risk of one cryptocurrency significantly reducing your investable wealth.
For example, Revix gives its customers access to several crypto bundles, such as the Revix Top 10 Bundle, which allows them to benefit from the overall growth of the industry, or if they prefer a specific sub-sector of the crypto space, a sector-specific bundle through a simple one-click investment .
3. Upgrade your crypto knowledge
Because the cryptocurrency market is still in its infancy, there is more opportunity to generate alpha (beat the market) than in traditional markets. Those who make a lot of money in the cryptocurrency market are the first to notice these trends.
Imagine investing in decentralized finance (DeFi) in the summer of 2020, right before the 100x DeFi summer, or buying Polygons MATIC token for less than $0.01 (trading at $1.12 at time of writing).
Revix Bundles keep investors informed and invested in the biggest and best cryptocurrencies based on market cap and theme, so you never miss a trend.
4. Zoom out and see the bigger picture
Zoom out when in doubt. As crypto moves towards mainstream adoption, it will likely see many more ups and downs, but if we use bitcoin as a proxy for the crypto market, we can see a clear long-term picture of growth and returns.
And it’s not just bitcoin; Over the past few years, we have seen how the world of DeFi and smart contracts is shaping a new era of financial services, one that allows for a costless, transparent and non-sovereign transfer of wealth between parties.
How can you access these cryptocurrencies and their sectors?
South African fintech Revix offers the easiest way to invest in over 15 single cryptocurrencies (bitcoin, ethereum, uniswap, polygon and more). Its signature themed crypto bundles are suitable for any investor looking to diversify their portfolio into different sub-sectors of the cryptocurrency space.
These bundles include Revix Top 10 Bundle, Smart Contract Bundle, Decentralized Finance Bundle, Payments Bundle and more.
Visit Revix today and invest the smart way.
About Revix
Revix provides simplicity, trust and great customer service when investing in cryptocurrency. Its user-friendly online platform allows anyone to securely own the world’s best cryptocurrencies with just a few clicks. Revix guides new customers through the registration process to their first deposit and first investment. Once set up, most customers manage their own portfolio but can access support from the Revix team at any time.
Remember that cryptocurrencies are high-risk investments. You should not invest more than you can afford to lose, and before investing, consider your level of experience and investment objectives – and seek independent financial advice if necessary.
This article is intended for informational purposes only. The views expressed are opinions, not facts, and should not be construed as investment advice or recommendations. This article is not an offer, or solicitation of an offer, to buy or sell cryptocurrency.
