Long Term Investment
Some cryptocurrencies still provide many options for investors.
Cryptocurrencies appear to be on the verge of being recognized as a viable long-term investment option, with major investors acknowledging that cryptocurrencies are an asset class worth investing in,
even though they are highly risky and highly volatile. At the same time, there is a growing discussion among some of the largest crypto giants about adopting the crypto industry as a retirement investment vehicle.
And the American “inspiration feed” says, in a report, that anyone who feels enthusiastic about embarking on the investment journey in cryptocurrencies must see a set of simple rules that must be adhered to, in order to avoid loss and shocks, and increase profits. profit opportunities.
The site adds that these rules and recommendations are not only related to securing investments and ensuring profit, but also to investment strategies and risk management.
Think about your investment strategy
The first rule that must be adhered to when investing in cryptocurrencies is to risk only what you are prepared to lose, as this field is full of risks and market volatility, and for this very reason the profits are astronomical compared to traditional investments.
And you must always balance between risks and potential gains, and make sure that your investments are diversified and logical, and be aware of the amount of money you risk losing so that your experience in this field is healthy and long-term.
One of the strategies that are popular in the cryptocurrency market is to buy a specific currency and keep it for life, no matter how prices fluctuate, which made many profits despite the market fluctuations.
Beware of fear selling
This point is related to the second advice, as anyone who is familiar with the cryptocurrency market knows that prices rise and fall dramatically, which allows for huge profits, and it is very important for investors to remain calm and avoid selling in panic periods when prices begin to decline.
This is because most cryptocurrency prices tend to adjust themselves after days, so rushing to sell them out with the first shake will cost you a lot of money, both from your original investment and potential profits.
In general, investing in cryptocurrencies is supposed to be long-term and is only accepted by those with experience and long-suffering.
And if you know the previous three tips, you can invest in the crypto industry after making sure of your right choices.
In a report published by THE MOTLY FOOL, author Dominic Basolto takes a look at 3 major cryptocurrencies that can make attractive long-term investments.
“BitCoin”
The writer stated that Bitcoin is the starting point for anyone building a long-term crypto portfolio, as Bitcoin has proven to be surprisingly resilient in the face of the ups and downs of the cryptocurrency market. Over its 14-year history, Bitcoin has survived several major crashes and each time bounced back better than before.
According to the writer, one of the long-term investment hypotheses for Bitcoin is that it is “the future of money.” Over time, Bitcoin will become increasingly important as an online payment option.
Ethereum
The writer mentioned that the Ethereum currency represents 20% of the entire crypto market capitalization, while Bitcoin’s primary function is as a store of value and an online payment option, Ethereum is a pioneer in the concept of smart contracts and innovation when it comes to decentralized finance, games, metaverses and digital assets.
And the writer considered that the best way to think about Ethereum lies in considering it as a base for everything that developers can think of building in the world of “blockchain” and cryptography, which gives Ethereum a lot of attractiveness in the long run, when you invest in it, you are not only investing in one cryptocurrency, It is also investing in an entire ecosystem of blockchain technology.
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Ethereum founder Vitalik Buterin has laid out an impressive long-term roadmap for blockchain technology, which will eventually be able to process 1 million transactions per second. When this is achieved, Ethereum will be faster and more powerful than current credit card networks, which can only process 24,000 transactions per second.
“Polygon”
According to the author, Polygon coin entered the list of the top 10 cryptocurrencies by market capitalization, which largely depends on its ability to create innovative use cases for the “Blockchain” technology.
Polygon has already partnered with Walt Disney with the long-term goal of developing new use cases in the entertainment sector. It partnered with Meta Platforms with the goal of bringing NFTs mainstream for billions of social media users around the world.
The writer pointed out that part of Polygon’s appeal is that it benefits from the security and stability of Ethereum, and then uses its own cutting-edge technology to aggregate transactions and deliver world-class performance to users.
Buy and hold for the long term
The author concluded his report by noting that while cryptocurrency is often associated with short-term speculation and market timing, there is an increasingly strong case for cryptocurrency as a long-term investment option. The future of money and the development of the “Blockchain” economy such as Bitcoin, Ethereum and Polygon.
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