There is an inherent amount of uncertainty with any investment in an attempt to profit. Even though the level of risk increases during times of recession, wars or other global negative occurrences, investing should always be a priority. A key reason for this is that cash tends to devalue over time, leaving you with less worth for your money than before.
Being well-informed and adapting your investing plan as events unfold can enable you to invest wisely during unpredictable times. Keep up to date by monitoring market news and researching specific projects, to be able to decide on your long-term strategy. It is understandably challenging to invest your hard-earned money during uncertain times, but it typically pays off well in the long term.
Portfolio diversification – key investment principle
Diversification strategy is a fundamental element of investing that helps to lower the risk of a portfolio. When it comes to developing a cryptocurrency portfolio, risk management is critical in this expanding, volatile industry. Diversifying your positions in digital assets will allow you to profit from overall crypto market development.
A common way to achieve diversification of investments is to buy cryptocurrencies with different use cases. While Bitcoin is often used to preserve wealth, many other altcoins are focusing on the development of decentralised applications (dApps) or the creation of non-fungible tokens (NFTs).
Furthermore, it is worth investing in a diversity of sectors. For example, decentralised finance (DeFi) enables users to effortlessly perform digital transactions without the use of a third party, such as a bank, using a peer-to-peer (P2P) blockchain network. In addition, the usage of cryptocurrency in video games has taken off, and an increasing number of play-to-earn (P2E) crypto games are being launched.
While there is no best time to invest in the market and you can never be sure that you are “buying the dip”, the dollar-cost averaging (DCA) method is adopted by many experienced investors.
Dollar-cost averaging is an investing technique that involves spreading investments out over certain time intervals regardless of price. It can assist in eliminating emotion-based decisions, but can it be applied to the cryptocurrency market?
DCA strategy can surely be adapted to crypto investments, however, it is commonly used as a long-term approach. The idea is to maintain a continuous investment cycle in which a fixed amount is invested in an asset.
Also, it is worth noting that dollar-cost averaging usually performs better in a bear market. While most investors are too hesitant to purchase, constantly wondering if it’s the right time to buy, your dollar-cost averaging strategy would empower you with an investing foundation for buying the dip.
Are presale tokens a path to success?
Previously successful presales, such as Ethereum (ETH) or Filecoin (FIL) have brought incredible returns to many early investors. Presale tokens are believed to be a considerably safer investment choice because their price does not fall, allowing the investor to potentially earn higher profits once the cryptocurrency is launched.
Presale tokens are a great way to achieve further diversification of your portfolio and they are likely to be offered at lower prices. Currently, in phase 2 of its presale, Parody Coin (PARO) has received lots of attention from investors. Many crypto enthusiasts are interested in Parody Coin because of its aims to bring several NFT sphere solutions to the crypto world.
Parody Coin will enable users to mint, trade, and purchase parodies of popular NFTs, including Bored Apes or CryptoPunks. The platform’s NFT marketplace is designed with a focus on accessibility and functionality. Parody Coin will also have several passive income possibilities, including those that do not require NFT creation.
This is not financial advice as you should always carry out your own research. However, if you are interested in Parody Coin (PARO) and consider adding it to your portfolio, follow the links below to learn more!
Always conduct proper research when dealing with pre-sales of currencies and tokens. The information above does not constitute investment advice by CryptoMode or its team, nor does it reflect the views of the website or its staff.
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