Strategies to Invest in Cryptos

Dear Crypto-Enthusiast,

In this article we are going to analyze the four different ways that one can invest in cryptos.

We would like to point out that this article is written for informational purposes only and is not a financial or investment advice. Everyone must conduct his/her research before he/she gets involved with the digital coins and never invest funds that he/she is not willing to lose without affecting his/her financial stability.

Let's look at our investment strategies!

1) Long-term Investment:

We start with the investment strategy with a long-term perspective. When referring to a long-term perspective we mean 12 to 36 months. It should be borne in mind that (besides specific coins that have a certain functionality and use) several currencies have a prospect but have not yet made progress in the evolution of the technology they describe. Let's stress that this is perfectly normal, just as companies who are in their first steps. A company who starts from scratch, cannot find its own efficient method of operations within at least 12 months. To distinguish between the most appropriate options, we need to look at the return on a crypto’s value from their start, current capitalization and the strategic partnerships it has signed or announced. The user who decides to invest, must have accepted that for a minimum of 36 months he/she will keep the crypto locked and will not be affected by the public in the social media which is demanding immediate results and is very excited or disappointed. Besides, if someone told you that in 36 months the price would reach a certain height, you would not care much about it until it reached this point. This is the least stressful strategy.

2) Masternodes:

Masternodes are packages that give specific companies users who will buy and hold a certain amount of their crypto. These packages are essentially annual dividends in the form of providing new cryptos to these users. In this way, these companies aim to create a strong community of holders that will help their value build resistance to market shifts. Investing in Masternodes after a good research into the true value and prospects of using the selected crypto can lead to the creation of permanent passive income.

3) Trading:

The next strategy (which we do not recommend to cardiac users) is trading. The users should familiarize themselves with reading and understanding the technical charts and then with the study of buyer or vendor behavior on the bureaus by monitoring the charts and tools provided by most platforms (with e.g. Binance or CoinMarketCap being a benchmark). The goal of traders is to generate daily income from the purchases and sales of cryptos. Of course, the commissions charged by the bureaus are to be taken seriously as they are not low and the fact that the indications show that the taxation on trading profits will be different from that for long-term investments with a maturity of at least 12 months.

4) Mining:

Mining is essentially the investment in computational machines that are specifically designed to perform the computational operations required to operate a crypto. This can be done in two ways by users. The first is to rent out equipment from companies that run “Mining Farms” or invest themselves in equipment that they will host in their own space. Major discussions are being held on the energy costs of maintaining the networks of cryptos and, more specifically, Bitcoin. In any case, users will have to weigh the costs of energy and initial investment in relation to the return in form of cryptos.

There is no right or wrong strategy. Everyone can choose the strategy that suits his/her character and temperament best.

We hope that these information are helpful.

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All the best,

Christos Kolokythas

and

Janis Ruhnau

President