If you’ve been thinking about trading cryptocurrencies in the long term, you are in the right place. In this article, we will share with you several strategies elements that will help make your trading strategy in the long term more solid. Through a long-term cryptocurrency trading strategy, you can keep your profits and also maintain a strong portfolio. Although so, we are not claiming that we have the golden rule when it comes to strategy but holding your cryptocurrencies in the long term can provide you with more benefits as long as you know how to do it.
Today, despite the lack of people holding cryptocurrencies in the long term, they are a number of people who believe that the best option to trade cryptocurrencies is to hold them in the long term. Admittedly, holding your cryptocurrencies in the long term doesn’t necessarily mean that it will be good at all time. It is important to acknowledge the fact that the market is still in the infancy stage and we have to give it some time to grow. For this reason, your portfolio may be worth a lot more if you take on a long-term strategy.
Also, we know that a lot of people are trading cryptocurrencies because they want to make money. So, let’s get into some basics about trading in cryptocurrencies first.
Basics of cryptocurrency trading
First and foremost, you should only invest money in cryptocurrency that you are willing to lose. Don’t invest all of your life savings into cryptocurrency because of this space is highly risky. You don’t want to go to bed and wake up one day realizing that you’ve lost everything to your name. Some people tend to let their emotions get the best of them sell the often make premature decisions in trading cryptocurrencies. Unfortunately, trading with unstable emotion is one of the worst things that you can do as a trader. You can’t think straight, and you’re hoping that you will get profit out of your investment.
No matter what happens, you need to have a safety net that you can fall back on. In this regard, you shouldn’t gamble everything that you have left in your finances. On top of that, this strategy will only work on a project that you have in-depth knowledge about. Use of research in detail about what is the problem that the project wants to solve.
In what industry does the project it hoped to find mainstream acceptance? You should also check for the people behind the project. If you are not certain about these aspects in the cryptocurrency project, any strategy that you adopt will be useless. If you don’t have discipline have a trader, you will most likely lose a lot of money in the long run.
In this strategy, it is a long-term strategy that focuses on big market movements and also big movements of individual coins. Therefore, this strategy will outline a systematic approach to how you can buy low and sell high they can increase the value of your portfolio. Ultimately, it aims to take on the cryptocurrency market in a more relaxed manner. As a market is incredibly volatile, trying to predict anything will cause you to be anxious.
We’d also like to remind you not to be anxious about wanting to enter the market at the perfect time. Even the most seasoned traders in the cryptocurrency market cannot predict which is the bottom or the peak of the market. All of these emotional stress can cause you to make the wrong decisions.
Understanding your emotional tendencies
Now, this isn’t something that you always see in a guide about cryptocurrencies, but it is important that you understand what you normally do when you are under stress. On top of that, your beliefs about the market also affect the way that you trade. Therefore, this strategy will try to take away the individual factor from the equation because you cannot trade with your emotions. If you do this, you will almost always lose if you don’t come to terms with the fact that the market can be cruel.
Some of the biggest mistakes that you can make when you are trading in the cryptocurrency market is investing in something that you have very little information about. The cryptocurrency world is filled with people that want to take your money. That is the truth, and the faster you come to terms with it, the easier it will be for you to take precautionary measures in the market. On top of that, you shouldn’t only invest in one cryptocurrency. It is highly tempting to invest in Bitcoin, but you should look into the potential other cryptocurrencies.
As we mentioned earlier, don’t make the emotional mistake of trading too much. If you go too big on an asset, you may regret the decision when the market quickly goes the other way. On top of that, there is a tendency to get emotionally attached to the specific coin. Believe it or not, some traders think they know where the coin is going to move. However, just because someone believes that it will go up, it doesn’t mean that it will. Your belief doesn’t affect the market. The demand and supply determine it. In the case of cryptocurrencies, speculations fuel the market.
So, come to terms with the fact that the market will do whatever it wants to do without taking into account what you think.
Doing independent research about a project
Another aspect that we believe is important in this strategy is you need to know what you are investing in. Without the knowledge of what you put your money into, you’re more likely to make more poor trading decisions in the future. One of the ways that you can improve your knowledge about the project is by going through the white paper. Understanding the technical solutions provided by the project can also determine whether it has the potential to make it in the market. Also, keep an eye out for possible partnerships with other larger institutions that may signal for the legitimacy of the project.
If you think that the project is too complicated for you to understand, it is best that you stay away from it. Also, the source in which you are researching by the cryptocurrency also matters. Make sure it is a verified source and not just another blogger writing about their opinion. Without further ado, here are several coins which we believe are great long-term cryptocurrencies.
Best coins for long-term investment
This is one of the best alternative coins that can be part of your long-term cryptocurrency trading strategy. Although some people may think that the cryptocurrency is expensive, the cryptocurrency is showing the potential of reaching Ethereum’s market capitalization. You are not too late to join in on buying this cryptocurrency because we predict that this is going to be a big cryptocurrency in 2018.
NEO was created in China in which it thrived a legal environment that restricts the growth of cryptocurrencies. Blockchain companies are still allowed to operate within China because there are no rules against it. On top of that, this cryptocurrency also has a feature which is called the virtual identity that makes it possible for everyone on the blockchain to be identified. That said, this cryptocurrency does get associated with centralization. Ultimately, this project wants to create a smart economy which links people’s digital assets to the blockchain.
In fact, some people invest in this cryptocurrency because they believe that the Chinese government is going to allow the trading of cryptocurrencies soon. However, that’s not such a convincing reason to traders cryptocurrency in the long term because this is a theory and speculation that will continue to go on in the market. Therefore, you should consider trading this cryptocurrency because it is going to be successful regardless of what China’s position is about cryptocurrencies. There is no use thinking that the legal situation will change.
In fact, this cryptocurrency has solidified its position in the top 10 cryptocurrencies in the world based on their market capitalization. For this cryptocurrency to be successful, it does not need China’s stamp of approval.
Ethereum is another cryptocurrency that you can invest in for the long term. Although some people may think that it’s too late to get in on the Ethereum cryptocurrency, there is a reason to believe that this cryptocurrency still has a lot of room to grow because of its unique blockchain structure. In fact, Ethereum is a decentralized platform that users smart contracts. The usage of the smart contract is what differentiates this cryptocurrency from many other cryptocurrencies that only implement the usage of the blockchain. With smart contracts, the infrastructure can automate the completion of contracts given that certain preconditions have been met. In the future, this can transform the way that we do business because we don’t need a centralized institution to overlook our transactions.
In an industry which has contractual obligations, Ethereum’s smart contracts can play an important role. The benefits of using this blockchain also include the fact that it can reduce the amount of downtime, censorship,and fraud. In our world today, we are in need of an infrastructure that Ethereum provides. On top of that, Ethereum is the platform in which people used to launch their initial coin offerings.
Due to the uncertain regulations around this space, many believe that people will leave initial coin offerings. If this does happen, this will cause the market capitalization of Ethereum to crash in the future. However, proponents of Ethereum believe that the crash caused by banning of initial coin offerings will most probably be minimal.
Despite this, it is undeniable that initial coin offerings make up a huge part of Ethereum’s market capitalization as it has been tied to many potential start-ups.
Wanchainfunctions based on interoperability and it will enable different chains to work together. Therefore, the function of this platform is to enable different projects to work with each other even across multiple blockchains. This capability is making investors in the cryptocurrency space highly excited because it can provide much value at the enterprise level. Wanchainenables values to be exchanged between different blockchain’s regardless if it is public or private. On top of that, the cost of the transaction within the blockchain is also low.
With Wanchain, anyone can set up a virtual teller window and provide services such as transaction settlements is on digital assets. However, Wanchain didn’t raise a huge amount of money in their initial coin offering. For people that missed out on their token sale, they can pick up these tokens the moment that the hit exchanges. In the long run, this platform has a huge potential, and this is the reason why people should buy this cryptocurrency as a long-term strategy. It also only has $100 million worth of coins in circulation which opens up great potential for growth.
Monero is one of the long-term cryptocurrencies that you should trade because it offers a unique feature that many other cryptocurrencies don’t have. This is in the fact that this cryptocurrency is a privacy cryptocurrency. If that doesn’t ring a bell with you, it means that you can do your cryptocurrency transactions completely privately.
You may think that Bitcoin was private, but details about the transaction such as the number of coins they sent over to someone else can be seen on the blockchain. Using this cryptocurrency, everything about the transaction is wiped out it is like you didn’t do the transaction at all.
Although this may not seem like a good example, the owner of a darkweb website was able to run away with his cryptocurrency profits because he stored it in the form of this cryptocurrency. For this reason, this cryptocurrency is becoming increasingly popular as people are searching for more ways to make the transactions private. Unfortunately, this also means that the people who are adopting this cryptocurrency include hackers, illegal defenders and the average person who just wants to evade taxes.
Another important cryptocurrency that must be included in the conversation about long-term cryptocurrencies is ICON. This is a project that has already experienced huge gains, but it has a lot of potentials to grow further. This cryptocurrency was designed to be a large-scale ecosystem. The vision of this project is to help private, and public blockchain is to work together. In the commercial application, universities, banks, and hospitals can utilize their technology to forge a collaboration. It is possible that this cryptocurrency will enter into the mainstream market because there proposition is highly practical even in the commercial world.
This is a cryptocurrency that has been compared to Ethereum and NEO. However, it has a more interesting history compared to these other to cryptocurrencies. In fact, it was initially developed by Disney as a business focused blockchain. The purpose of this blockchain is to be one of the most developer-friendly blockchains is available in the market. In fact, businesses should find a blockchain quite easy to use because you can store data on it and maintain control over your data. It also doesn’t utilize a server in his operations which is highly unique.
Some possible uses of this cryptocurrency in the real world are in voting systems, payment platform, peer-to-peer financial derivatives and futures, and bonds. On top of that, the developer of this coin also encourages people to hold cryptocurrencies in the long term. In fact, there is something called the slumber score which will enable people who hold the coin for the longest time to have high access during a token sale. Therefore, you can benefit from the future access to their projects which will encourage more people to hold the cryptocurrency in the long term.
Several benefits of using this cryptocurrency is that enables any business to have its own blockchain and achieve enterprise consensus to one or more public blockchain. It is also highly developer friendly as the programming languages, and this platform is also available in projects outside. On top of that, it doesn’t require the use of the currency to operate its blockchain. To encourage development on the platform, there will be an incubator place for new projects. This cryptocurrency should have an exciting 2018, and it is possible that people will gain more awareness about the usefulness of this cryptocurrency.
When you decide to invest in Golem, it is a lot like investing in artificial intelligence. The purpose of this cryptocurrency to create a global an open source decentralized supercomputer that is needed from the combined power of users machines. Using their business model, it means that an average user accounts out there and use computational resources on the blockchain. In return, buyers can also purchase the necessary computer power from their blockchain. Therefore, they want to be the world’s most powerful supercomputer that trades the computational power.
The potential market that this cryptocurrency can enter into is huge. In fact, you can utilize science, machine learning, deep learning, cryptography and even make stock market predictions. However, there is a reason that this cryptocurrency may not be able to overcome some huge hurdles. It is the fact that this cryptocurrency is going against huge names in the industry. For instance, ifGolem is to compete against Amazon Cloud Services, they will be competing against a giant. Amazon is a huge corporation which has a lot of manpower in their name, and they also have ample financial resources which can make this Golem’s business proposal redundant.
There is also the issue whereby the timeline that was given by this cryptocurrency is eight years. That’s a long time to deliver in technology. By that time, the technology that they are currently developing may be redundant. However, there is a reason to believe that this cryptocurrency is worth a shot at the long-term investment at least for a year.
This cryptocurrency can be considered as a direct competitor toEthereum Classic. In fact, they have a conservative approach compared to Ethereum because they claim that they have an enterprise-ready build of the interior blockchain. Therefore, they want to offer the possibility of businesses to use their infrastructure for higher security and more efficiency in operations.
In fact, there is a reason to believe that this cryptocurrency may be severely undervalued. The developing team of this cryptocurrency bought a stake in the cryptocurrency using their own money. Therefore, the team is thinking about the long-term success of the cryptocurrency because they invested in their platform using their own funds.
Wrapping it up
There you have it. In this article, we’ve gone into detail about a long-term cryptocurrency trading and gave you 8 examples of cryptocurrencies that serves this purpose. We hope that this helps you gain some knowledge about which cryptocurrency is worth a shot. Holding cryptocurrencies in the long term can also help you gain more profit as these projects being developed by individual cryptocurrencies start to mature. Although so, it is important that you do your research about the cryptocurrency individually and not make this article the sole reason that you are investing in the cryptocurrency. With that, we wish you a successful trading year in 2018.