Investing in cryptocurrencies can be a great way for you to make a profit. However, investing in cryptocurrencies can still carry some risks with it. Learning how to reduce your risks as much as possible can make it so much easier for you to earn a profit, without having to worry about potential losses as much.
Pickout one strategy: Picking out a good strategy to work with will make all the difference when it comes to trading in digital currencies. There are many strategies that you can use, and the one you work with will often depend on your chosen cryptocurrency as well as with whether you wish to invest short-term or long-term. All of the strategies have the potential to make you money as long as you use them properly.
Understand the currency you are working with: Since all of these currencies work in different ways, it is important that you fully understand the way that your currency works before you join in. You need to know something about the currency and how it works.
Diversify your portfolio: Diversifying your portfolio means that you will put your money into at least two different investment types. The more investments that you can do at once, the less risk you are taking on. Another benefit of diverisification is that it can help protect you from yourself. Your crypto wealth is less likely to have large swings in value when it's diversified, so you are less likely to let your emotions guide your investment decisions.
Ask for help: Asking for help from someone who knows what they are doing, rather than trying to figure it all out on your own, can be the best way for you to lean how to invest properly.
Keep the emotions away from the investment: Keeping your emotions out of your investment if so important if you want to actually earn money. Emotions get in the way and make it almost impossible to make sound decisions on any of your investments.
Have an exit strategy: You should make sure that you have an exit strategy right from the beginning. This can help you to keep your emotions out of the game from the beginning and will make it easier for you to stick with your plan rather than losing money.
Investing in cryptocurrencies can be financially rewarding, but it's also risky. With the right crypto index strategy, you can try to reduce all the risks as much as possible.
In early 2017 we decided to design an index for the burgeoning cryptocurrency market. An independent team of mathematicians, quants and fund managers lead by Igor Rivin, Professor of Mathematics at Temple University and Whitehead prize winner 1998, and Carlo Scevola, economist and president of CS&P.
The purpose of this index would be twofold:
1) It would be a kind of a barometer for the cryptocurrency market.
2) It would be an investment vehicle which would allow an investor to participate in the growth potential of the cryptocurrency space and ultimately help them to achieve financial freedom.
We have decided to use top 20+ cryptocurrencies by market capitalization - the currencies below this cutoff are not very liquid and the top 20+ capture 90% of the total cryptocurrency market capitalization. The constituents of the index are weighted proportionally to the square root of their market capitalizations.
The index is completely rebalanced every quarter, and reweighed every month. This is necessitated by the rapid evolution of the cryptocurrency market.
The index is available at Libertypool, a borderless crypto investment platform. At Libertypool.com, you can start investing in the index from $500. From the beginning of 2015, the performance of the Libertypool index fund is up by around 7000%. In the same period, Bitcoin, by contrast, is up some 2500%.
I believe in the future of cryptocurrencies. So the best way to achieve financial freedom through cryptocurrency is to invest in a best risk-adjusted, high performance and diversified crypto index fund like this.
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