What is Long and Short Term Investment in the Crypto Money Market? There are many ways to start investing in the crypto market. One of the most important things to consider beforehand is your investment choice. There are two ways to invest in crypto: long-term cryptocurrency trading and short-term cryptocurrency investment
Long-Term Cryptocurrency Investment
An excellent success story of a long-term crypto investment is the price history of
Bitcoin
. When Bitcoin was created, the value of each Bitcoin was less than $0.01. Today, each Bitcoin has reached a price line of $35,000. But just because you missed the chance to buy Bitcoin years ago doesn’t mean you can’t start a long-term investment in the crypto market. When you approach the crypto market with a long-term investor mindset, the day-to-day volatility of the market will hardly affect your investment. When investing in long-term
cryptocurrency
, you need to do your research well beforehand. You should definitely do your chart analysis. You need to look for answers to questions such as which crypto money your investment, what kind of project, what are the historical movements, how it was formed. Cryptocurrency investments can see impressive growth, but it’s crucial to fully understand how a project works before risking any capital.
Which Cryptocurrency to Choose in the Long Term?
Major cryptocurrencies are essentially a type of crypto assets that are the pillars of the industry. Obviously, the first and leading cryptocurrency (in terms of market cap and impact) is Bitcoin (BTC). Owning BTC in a cryptocurrency portfolio is a rational and wise decision.
The second place rightly belongs to Ethereum (ETH). Most decentralized applications (dApps), decentralized exchanges (DEXs), and rapidly evolving DeFi applications are built on the Ethereum blockchain. This fact preserves the value of ETH, which makes it an indispensable tool for running a long-term crypto portfolio.
Short-Term Cryptocurrency Investment
As a short-term investor, you buy and sell cryptocurrency in seconds, minutes, hours, days, or sometimes weeks. You can also take your daily profit and step aside. Since the crypto market can be extremely volatile, you might think it might be better to be a short-term investor. However, there are many challenges to being a short-term investor in the crypto market. One thing you should note about the crypto market is that it works 24/7. As a result, there is no set time for when to start trading. In other markets, such as the stock market, there is a certain opening and closing time. During the intervening hours, it gives you time to follow the news and adjust your strategy for the next opening. There is no such period in the crypto market; It is up to you to choose a period for your short-term trade. Another disadvantage of short-term crypto trading is the lack of a built-in calendar of events.
Companies working in the crypto market will usually keep developments quiet until the last minute. If we take the example of the lawsuit that the US CMB SEC suddenly filed against the Ripple company recently, the sudden fall in Ripple (XRP) prices has left many investors in a very difficult situation. As a result, it is not easy to plan your short-term investment strategy according to future events, as we cannot be aware of the slightest negative developments about the market in advance.
Result
Since the industry has access to over 5,000 cryptocurrencies, you can choose any cryptocurrency you like. You can get the cryptocurrencies and other cryptocurrencies described in our article very easily on Icrypex with your credit card, bank transfer or Papara card. Whether you invest long-term or short-term, invest wisely first of all, and finally let the volatility be with you!
