The cryptocurrency market has generated a return of more than 900% since the beginning of 2017 (when this is written). If you had made an investment of $ 500 in January, you would have achieved 5000 in less than a year! This type of strategy is known as a long-term investment, and this guide aims to show you how to implement this investment method: to build a long-term cryptocurrency portfolio.
Long-term investment merely is as its name suggests, taking a long-term view of finances. Each one defines ‘long-term’ in a different way. In the stock market, ‘long-term’ usually means anything that lasts for years.
The advantages of long-term investment in Cryptocurrencies
The historical statistics of a growing economy have proven to work: by observing the S & P 500 over a period of 5 years, we see that it has achieved a return of around 60%. In general, markets tend to have an upward trend over time, so with this in mind, investing in the long term has its advantages. This can be said not only over the last five years but also almost every five years throughout the history of the new economy.
Lower commissions: if to take an active approach to trade, then it is expected that the commissions of the exchanges will reduce your earnings. Less risky: entering and leaving the market may mean you miss days when significant gains are made. You do not have to worry about this with a long-term investment strategy. Taking this fact into account, to reduce volatility, we recommend entering the market using the DCA method. Regarding all these you can know a lot now. This is where you can have the best options. The online blogs can help you about it and that makes your visit to https://www.amarkets.com/about-amarkets/ now.
Long-term value indicators
Market News: It may turn out that a cryptocurrency is experiencing a problem it can expressively affect its long-term feasibility. The news of the market will change the price of your cryptocurrencies and the value of your portfolio, so it is essential that you be prepared to react. In addition to market news, other factors -which you can find here can also affect the price of cryptocurrencies. In general, it is essential to keep up with the market news that refers to the cryptocurrencies of your portfolio so that you can make informed investment decisions.
Taste for the risk
Exposure to a particular cryptocurrency depends mainly on your taste for risk. If your risk tolerance is neutral, a typical investment portfolio would be 50% equity and 50% bond. It is known that stocks are riskier than bonds, but also offer higher returns as a result. Combined, the portfolio is produced, without too many risks, but neither too sure.