Trading Guide for Cryptocurrency: 4 Long-term Strategies

Cryptocurrency is changing how we think about money and investing. This blog, part of our investing and trading series, focuses on long-term crypto investing strategies. We’ll explain common long-term strategies, how to choose the right cryptocurrencies, and how to create a solid investment plan.

Key pointers

• Hodling has been the best strategy for the last 15 years, but also extremely risky.
• Even though the crypto market has unmanageable risks, fundamental analysis can reduce some of them.
• Dividend projects give both cash flow and potential growth but their realized return is still very volatile.
• Diversification helps reduce risks and also return. There are many different diversify methods, with different complexity, pros, and cons.

Crypto long-term investing strategies

Long-term strategies follow the saying, “Time in the market beats timing the market.” These strategies focus on slow, steady growth and avoid risky tokens or ultra-high-interest exchanges. Long-term investors buy and hold for a long time, reducing the trading fees that frequent traders face. Uniquely in crypto, you can also earn extra revenue by yield farming with the tokens you hold.

1. Hodling