There is a wide range of strategies available for those who want to invest in cryptocurrency. Some of these strategies require a good knowledge, experience and skills but some are easy and can be implemented by anyone who is interested.
Perhaps the most obvious, easy and popular crypto investment strategy is “manipulation”. The strategy is easy to implement as all that is required is to buy cryptocurrency and keep a hold of it for a long period of time, maybe for years if required.
Due to demand for Bitcoin being increasing day by day, this has resulted in the prices of Bitcoin (and other cryptocurrencies) increasing exponentially over the past 10 years. Because of this, long-term holding is a profitable and a reliable strategy and today there are many investors who have bought the currency and have held it for a long period of time.
Another popular cryptocurrency investment strategy is to invest based on analysis, as is investing based on decisions that do noy depend on price and volume movements in cryptocurrency charts.
TRADING:
Cryptocurrency trading is also very popular and it has the same goal of making profit from buying and selling of cryptocurrencies.the activity differs from investing in cryptocurrency when we consider the average duration of each trade and the frequency of trade that occurs. When investing in cryptocurrency is concerned with trading a small number of long-term trades, crypto trading is an activity involving creation of frequent trades, over a relatively short period of time.
There are many platforms available for the crypto trading but the best ones includes:
- Binance
CRYPTOCURRENCY MINING:
Cryptocurrency mining is the process of downloading a particular program that is given by cryptocurrency to allow a computer to attempt to solve complicated crypto problems, thereby being rewarded with free cryptocurrency.
Cryptocurrency mining is a critical component of how it works and the miners act as a stabilising force for any cryptocurrency with a strong correlation between crypto stability and the number of miners securing the crypto network. In the early days of bitcoin, crypto miners could easily earn bitcoin even with a basic laptop as the competition was low and the difficulty rate of bitcoin mining was also less.
As time went by and the miners went into space, the hash rate resulted in a higher difficulty rate in the bitcoin network, which meant that CPUs could not be used to mine bitcoin anymore, and hence GPUs could no longer be used either.
Today we are at a point where the only way to carry out bitcoin mining is to use specialized GPUs known as ASIC. Bitcoin can only be mined for profit today if the miner is a part of a large pool well known as mining pool or rums a large repository operation for mining computers known as mining farms.
