How Long Should You Hold onto Cryptocurrencies?
Greed can often be the undoing for novice investors, and that is certainly very true when those inexperienced investors turn their attention to the cryptocurrency investing environment, which is always going to be a high-risk environment.
It can sadly be way too easy to get blinded by the potentially huge returns that can be made by buying into any cryptocurrency when they price is low and then selling it on for a huge profit, and many people look at the price of Bitcoin when it was launched and its current price and want to replicate the profits made by those early investors.
No matter how you look at Bitcoin though, there is one thing you do need to understand fully before you ever do set about buying into it, and that is its value is always going to be volatile, and there is no real way of telling when its value will drop massively or shoot upwards!
Therefore, one question that you are bound to have when you do venture forth into investing in Bitcoin or any other cryptocurrency is just how long you should hold onto your investments for.
With that in mind I am going to be looking at a range of different cryptocurrencies and letting you know what is going to be the best investment strategy for you to use when investing in any of them.
But at the end of the day, always keep in mind that whilst you can make some huge financial gains if you are lucky, the opposite is also true, and for every single cryptocurrency exchange, there will be a winner and a loser!
Best Long-Term Cryptocurrency Investments
If you do have some spare funds and are prepared to tie them up into some long-term investment opportunities in the cryptocurrency environment, then you should be looking at buying into some of the top ten cryptocurrencies by their respective market values.
Take for example, Bitcoin and Ethereum, their valued do tend to bounce around all over the place over the short term and as such you should forget about buying and selling them quickly but look at them as long-term investments instead.
By long term I do mean at the very least a year or so, for by taking a long-term outlook on the major and longer established cryptocurrencies there is much more of a chance that you will lock in some respectable profits and gains.
You can of course choose to invest in Bitcoin or Ethereum over the very short term and there can be money to be made by you doing so, but what you will find you do when investing in them over the short term is become obsessed with checking out their values day and night.
You need peace of mind as an investor and becoming completely obsessed with a cryptocurrency is never a good thing, as it can and will take up most of your waking hours, so for the good of your mental health and to possibly see your investments growing in value do stick to the long-term investment opportunities when you do buy into any of the major cryptocurrencies is my advice!
Cryptocurrencies to Invest in Over the Short Term
I have been very carefully monitoring the cryptocurrency market place for many, many years now, and one thing that I have noticed over the years is that the cryptocurrencies that do tend to make some massive returns are coins and tokens that have been launched as part of an initial coin offering or token generation event.
The key to making some large potential profits when investing in newly launched coins or tokens is to buy into them as soon as you can do.
However, the best ones to invest in will always be those that do have a sound business plan or project backing them, and as such it will sadly take you some time to trawl through as many up and coming ICO’s as you possibly can do, but it will often be worth the time and effort when you do so.
If you do choose a coin or token to invest in and get in nice and early then once the ICO is over and the tokens and coins become available on digital currency exchanges that is when you are likely to see their values massively increase, and that is when you should be considering selling some or all those holdings to lock in your winning profit, so do keep that in mind!