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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. 

  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.  

  1. 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

  1. 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.  

  1. 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.  

  1. 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.  

  1. 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.  

  1. 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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Cryptocurrency Market Update: Bitcoin Slips Below $70,000 Amidst High Liquidation

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In a swift turn of events, Bitcoin (BTC), the pioneering cryptocurrency, dropped below the $70,000 threshold early on Wednesday following a wave of investor sell-offs. Just a day prior, Bitcoin had crossed the $71,000 mark, but market sentiment swiftly shifted, dragging other major altcoins—including Ethereum (ETH), Dogecoin (DOGE), Ripple (XRP), Solana (SOL), and Litecoin (LTC)—into the red zone.

According to CoinMarketCap data, the overall Market Fear & Greed Index stood at 75 (Greed) out of 100, indicating a mix of optimism and apprehension among traders. Notably, the Bittensor (TAO) token emerged as the top gainer with a remarkable 24-hour surge of over 7 percent, while dogwifhat (WIF) experienced the largest loss, plummeting nearly 16 percent.

Bitcoin (BTC) Price Update Bitcoin’s price tumbled to $69,089.01, marking a 24-hour dip of 3.05 percent, as reported by CoinMarketCap. On the Indian exchange WazirX, BTC was priced at Rs 60.93 lakh.

Other Major Cryptocurrencies Ethereum (ETH) saw a 24-hour loss of 4.81 percent, trading at $3,508.86, while Dogecoin (DOGE) registered a dip of 5.59 percent, currently priced at $0.1879. Litecoin (LTC) and Ripple (XRP) also experienced losses, with Solana (SOL) marking a 24-hour loss of 3.44 percent.

Top Gainers and Losers Bittensor (TAO) led the pack of gainers with a 7.30 percent surge, while dogwifhat (WIF) suffered the most significant loss, dropping by 15.58 percent.

Market Analysis and Expert Insights Experts weighed in on the market scenario, attributing Bitcoin’s downturn to heightened liquidations and cautious sentiment ahead of the upcoming US CPI data release. While Bitcoin’s immediate support rests at $67,700, resistance is expected at $70,400. Ethereum proponents face challenges amid hopes for an ETF approval, with the SEC providing limited updates on the matter.

Final Thoughts The cryptocurrency market remains highly dynamic, with prices fluctuating rapidly and investor sentiment playing a pivotal role. As the market navigates through volatility, it’s essential for investors to stay informed, exercise caution, and seek expert advice before making any investment decisions.

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Cryptocurrency: A Scapegoat for Foreign Policy Failures?

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Cryptocurrency has once again found itself at the center of a heated debate, this time regarding its alleged role in facilitating illicit activities and circumventing sanctions imposed by the United States. The Biden administration, in particular, has come under scrutiny for its handling of the issue, with some accusing it of using digital assets as a convenient scapegoat for broader foreign policy shortcomings.

In a recent hearing before the Senate Banking Committee, Deputy Treasury Secretary Wally Adeyemo raised concerns about the misuse of cryptocurrencies by foreign adversaries such as Iran, Russia, North Korea, and militant groups like Hamas. Adeyemo’s remarks underscored a growing unease within the U.S. government regarding the potential national security implications of unregulated digital currencies.

However, voices from within the cryptocurrency industry and Congress have pushed back against the administration’s narrative. Faryar Shirzad, Chief Policy Officer at Coinbase, one of the leading cryptocurrency exchanges, pointed out that the prevalence of illicit activity in the crypto space is relatively low compared to traditional finance. Instead of demonizing cryptocurrencies, Shirzad argued, the focus should be on targeting bad actors operating offshore.

Senator Tim Scott, the ranking Republican on the Senate Banking Committee, echoed these sentiments, accusing the Biden administration of using digital assets as a distraction from its failure to effectively combat financial flows to sanctioned entities. Scott’s criticism reflects broader skepticism among some lawmakers about the government’s approach to regulating cryptocurrencies.

One area of potential agreement between the Biden administration and the cryptocurrency industry is the need for clearer regulations governing stablecoins, a type of digital asset pegged to a fiat currency like the U.S. dollar. Both sides recognize the importance of addressing the potential risks associated with stablecoin issuance and usage, particularly in the context of national security and financial stability.

The debate over stablecoins has intensified following reports of their alleged role in facilitating illicit transactions, including those linked to Russia’s war effort in Ukraine. The Treasury Department has called for increased oversight of stablecoin issuers and transactions, while also advocating for legislation that would subject them to stricter regulatory standards.

Despite the contentious nature of the discussion, there are signs of bipartisan cooperation on certain aspects of cryptocurrency regulation. A bipartisan bill addressing stablecoin regulation passed the House Financial Services Committee last year, signaling a potential path forward for legislative action in this area.

As the debate over cryptocurrency regulation continues to unfold, it is clear that finding the right balance between innovation and security will be paramount. While concerns about illicit activity and national security must be addressed, policymakers must also recognize the potential benefits of cryptocurrencies in fostering financial inclusion and technological advancement.

Ultimately, the resolution of these issues will require thoughtful collaboration between government officials, industry stakeholders, and lawmakers to develop a regulatory framework that promotes innovation while safeguarding against misuse. Only through constructive dialogue and cooperation can we ensure that cryptocurrencies fulfill their potential as a force for positive change in the global economy.

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Bitcoin Resurgence: Why Wall Street Is Embracing the Crypto Revolution

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Andrew Pratt of Wiser Wealth Management in Marietta, Ga., finds little resistance as he proposes Bitcoin investments to his firm’s committee. With Bitcoin surging 140% in the past year and backed by giants like BlackRock, skepticism has waned. Pratt sees the potential to allocate a modest 1% of client portfolios to Bitcoin, acknowledging the limited downside risk compared to potential gains.

The debate over Bitcoin’s intrinsic value seems to have lost its relevance amidst its soaring market performance. Once dismissed, Bitcoin now boasts a market value of $1.3 trillion, driving the total crypto market to $2.5 trillion. Wall Street, once wary, now views cryptocurrency as an opportunity for profit rather than a speculative venture.

Despite lingering doubts about Bitcoin’s utility beyond speculation, Wall Street executives are increasingly supportive. BlackRock’s CEO, Larry Fink, notably reversed his stance, endorsing Bitcoin’s long-term prospects and championing the iShares Bitcoin Trust, now one of the largest Bitcoin ETFs with nearly $18 billion in assets.

While skepticism persists about Bitcoin’s status as a real asset or currency, its growing acceptance on Wall Street underscores the evolving landscape of finance. As institutions embrace cryptocurrencies, Bitcoin’s journey from pariah to portfolio asset highlights the transformative power of digital assets in reshaping traditional investment strategies.

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