Entrepreneurs: 7 Tips to Grow Your Crypto Investments
Cryptocurrency & Blockchain
Investing in crypto can be a great way to grow your portfolio as an entrepreneur, whether you incorporate it into your personal investment strategy or your business portfolio. Still, crypto investments are not for faint-hearted investors. Ideally, you want to have a deep understanding of not only the growth potentials, but also the risks of the crypto market.
There is no denying that cryptocurrency will remain relevant in the future as its adoption spreads in the business world. Yet, it is important to remember that crypto is still a novelty that was only introduced in 2009. Crypto mining has been around for less than 15 years and still requires an enormous amount of energy to verify transactions. . Therefore, it is no surprise that the crypto market has remained virtually untouched by SMBs.
That being said, we can expect future technological advancements to make crypto mining more sustainable and, therefore, accessible to all investors. As an entrepreneur looking to grow your crypto portfolio securely, here are some tips for making the most of today's technological capabilities.
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#1. Do your research
There is no miracle formula. The crypto market experiences fluctuations as much as any other market. So, if you are planning to create a crypto strategy, your priority is to keep an eye on the cryptocurrency price prediction for your currency of choice. With hundreds of currencies to choose from, there are a handful of cryptocurrencies worth keeping a close eye on. Bitcoin and Ethereum are among the best known. However, a healthy crypto portfolio requires diversity.
Generally, it is a good idea to invest in the strongest cryptocurrencies. BTC and ETH, as mentioned above, exhibit less volatility. Still, you don't want to miss upcoming currencies that could give you a quick win!
#2. Introduce Crypto Accessibility
Currently, around 15,000 businesses accept bitcoin payments, and more than 2,000 of them are in the United States. As such, if you want to grow your crypto wallet, it makes sense to accept crypto payments. This will ensure greater currency availability for investment growth.
Nearly 30% of small businesses in the United States welcome cryptocurrency as an online payment method. However, this does not mean that your options should only target digital transactions.
Indeed, with Bitcoin ATM technology becoming available in the United States, it would make sense to introduce crypto payments to the offline world as well. The introduction of Bitcoin ATMs can also encourage more customers to invest in crypto and use it for regular transactions.
#3. Work with a crypto specialist
Growing your investment strategies starts with financial savvy. Yet, when it comes to the cryptocurrency sphere, it is important to note that an ordinary financial advisor may not have the specialized knowledge and experience you need.
Crypto investments require a unique understanding of both the cryptocurrency market and the technology enabling transactions and trading. While you can develop a standard investment strategy with a financial advisor, you want to entrust crypto management to a crypto expert. In many cases, investors work with more than one expert to ensure they have the relevant experience for each investment product.
#4. Invest in long-term strategies
The long-term strategy when it comes to investing in crypto is described as being taken by sophisticated investors. HODL, or Hold On for Dear Life, is a strategy that has been around for 10 years in the industry. It is designed to avoid the adverse effects of price volatility. Simply put, hodling comes from the belief that cryptocurrencies will eventually replace traditional currencies. As such, long-term hodlers are more likely to benefit in the long run.
How long do you need to hold your crypto assets before you can profit from this strategy? In theory, crypto cousins should be kept as long as possible. In practice, investors recommend staying at least a year before selling to make the strategy profitable. This passive strategy can generate high profits the longer you wait.
#5. Learn about trading
Crypto trading is the opposite of hodling. This is a short-term strategy, which involves buying and selling crypto assets in less than a year.
When does it make sense to trade rather than hodl? This is where working with an expert who understands the market and price predictions can make a huge difference. Bitcoin has been around since 2009. However, this does not mean that every currency is capable of maintaining the same longevity. In fact, since there is no regulatory body in the crypto market, anyone can create their own currency. As a result, many cryptocurrencies will only have a short lifespan in the market before disappearing. Investing in a hodling strategy makes sense for sustainable currencies. Yet investing in short-lived currencies can also be a great way to maximize profits in a short time.
#6. Accept crypto funds
Did you know that hosting funds can help unlock the next stage of growth for your business? This is the main reason why countless companies decide to go public and sell shares. However, not all companies are able to create and distribute their own shares. In other words, you must already reach a certain market size in order to grow further with this method.
But welcoming funding from various investors around the world through crypto funding can also unlock your growth potential. This can be advantageous for many reasons. First, there is no need for foreign exchange for international investors. Second, the entire process is more easily accessible, making it easier to grow your investment and your business.
#7. Diversify your investment portfolio
Building a crypto wallet positions your business for the economy of the future. However, that doesn't mean you should focus solely on crypto. A healthy investment portfolio requires diversity. Currently, investment experts recommend allocating between 2% and 5% of your portfolio to crypto.
The reason for this is that crypto investments remain volatile for short-term strategies and extremely slow gains for long-term strategies. You don't want to rely entirely on crypto. Protecting your investment against unexpected market crashes requires a diversity of assets and markets. In short, with crypto investments, you don't want to put all your eggs in one basket.
Are crypto investments the future? Enthusiasts are the first to share their belief and optimism about the crypto market. However, you want to be cautious when building your investment portfolio. The future of crypto could still crash at any moment!
Entrepreneurs: 7 Tips to Grow Your Crypto Investments