When it comes to cryptocurrencies, and as with many other things, timing is important. Buying and selling at the right time can gradually expand our crypto portfolio without having to invest additional money. In this video we explain the philosophy behind this strategy and, as a bonus, give our Latin American readers some advice:
The most common way of approaching cryptocurrencies is called «hodl«. This is the easiest way to start trading crypto. It consists of buying one or more currencies and they stay (hence the name) waiting for them to rise sharply and then sell.
This way of working is heavily influenced by the history of Bitcoin. the first and most valuable cryptocurrency. It was worth a few cents to begin with and today it’s valued at over $ 63,000. This means that some lucky ones, once investing a ridiculous amount of money, have made absolutely disproportionate returns.
This strategy is essentially based on luck. It is possible for one crypto to hit the jackpot and turn one euro into 10,000, but there are other ways with a little skill (and again a little luck) to increase our crypto exchanges. We are talking about swing trading (or day trading), which consists of paying attention to the market and performing buying and selling operations with a certain frequency.
The idea is very simple: buy cheap and sell high. Repeat the cycle for the investment to grow without stopping. Since the cryptocurrency market is so volatile and unpredictable, this is what it comes down to A way of working that is obviously associated with risks. However, if you trust the trend that a crypto has had over a month, for example, it can be effectively done if all goes well.
Remember that investing in crypto or any other area always poses a risk can make you lose money. Do your own research and make decisions with as much information as possible before entering the world of cryptocurrencies.