As a crypto-currency investor, you certainly have your work cut out for you. It's not an easy job and it's not for the faint of heart. Therefore, if someone wants to make money in crypto, they need to be creative. So check out the following tips to get your wallet on the right track.
CREATIVE WAYS TO MAKE MONEY IN CRYPTO: STUDY PSYCHOLOGY
Do you know anything about psychology? Well if you want to be a good crypto investor, you should start learning the basics. For example, you should know that fear is a strong emotion in this world. When fear starts to take over people, it triggers a fight or flight response. In this case, most people hit the "sell" button when they are afraid the market will crash. But that's not what you should do.
Instead, you should use people's fear as an opportunity to your advantage. During times of heightened fear, crypto is the most affordable. So, if you're looking for a short-term way to time the market and capitalize on the panic selling habits of others, then buy low and sell high.
CREATIVE WAYS TO MAKE MONEY IN CRYPTO: DCA STRATEGY
The Dollar Cost Average (DCA) is an old investment strategy that many seem to forget about in crypto. In simple terms, this strategy involves systematically investing a fixed number at regular intervals. Instead of spending a lot of time studying the market and trying to find the right time, you simply invest on a regular schedule. As a result, you buy more shares when prices are low and less when they are high. However, keep in mind that the CEB does not fully protect you from a loss in a down market or guarantee you a profit in a up market.
CREATIVE WAYS TO MAKE MONEY IN CRYPTO: ASSET ALLOCATION
Investing in crypto-currencies is risky. There's no other way to put it. Yet, there is a way to get around this risk, and that is asset allocation. Asset allocation is a strategy that helps manage your investment risk by diversifying your crypto portfolio with a variety of coins/tokens. As you know, each token is associated with different levels of risk and different potential returns. By diversifying your portfolio, you maximize your chances of success while minimizing your chances of losing money.
The only problem with this strategy is that many people don't have the funds to properly diversify their portfolio. This is exactly where a crypto-currency backed lending platform can come in handy. Let's say you have too many bitcoins. Just sign up on a platform like YouHodler and put some of your BTC as collateral. Within minutes, you'll receive a cash loan for your BTC that you can use as you see fit. After you buy other crypto-currencies with that money and pay back your loan, you get your BTC back. In the end, your portfolio is more diversified without affecting your crypto holdings. Now you'll never have to complain about not having money to invest.