How To Earn By Crypto Trading | Part - 1 "Balance Your Investment And Invest Wisely"

in #busy7 years ago

Its important to invest your fund in a proper way and wisely so we can minimize the risk and maximize the profit.

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Hi Traders,
This is the first part of the series and we will talk about "How To Invest Your Fund wisely". This is an important step and we can't take it so easy. First we have to get that how much of your fund you want to invest and in which crypto.

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In my case or opinion, first of all diversify your investment in some crypto category. Like

  • Long Term Investment ( Low Risk ) - 45%

  • Mid Term Investment ( Undervalued Coin ) - 30%

  • Short Term ( On News Demand ) - 20%

  • High Risk ( Pump-Dump ) - 5%

Long Term Investment - For long term holding i recommend 45% of you fund and long term means 6 -12 month minimum. These coin can be from an good ico, Bitcoin or top coins of the market which have huge potential in future.
I choose 45% becuase long term means less risk and i don't want to risk most of my funds.

Mid Term Investment - Mid term investment are those, which are for 2-4 months maximum. This is for that project who have great potential to grow in time of months and can give easily 2-3x.
I choose 30% because 2-3x is a good profit in just 2-4 months but good profit comes with risk too and market can crash any time without warning.

Short Term Investment - These investment are for those coins who have great news in coming weeks and which can cause pump in price of that coin and we can warn 2x easily in 1 month.
I choose 20% because there is no guarantee that price will increase and the news can also generate dump just before or after the news.

High Risk Investment - High risk investments are those who have more chance to make your fund vanish but if you are lucky or in any way that coin can give you 10 - 20 - 30 and some time more than 50x profit.
I choose only 5% because these coins comes with a higher risk and many time we can loose our investment.

Why the balancing of your fund is important ?

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Many time a newcomer do this mistake, what they do is just invest in a project with a desired amount without knowledge of the risk. For example investing most of the fund in high risky coins and in last what happen is, they loose their fund or got stuck their money on that coin in desire of huge gains. Investing higher fund in risky coins and less fund in long term investment is not a good idea. A balanced investment is a healthy investment and in case you loose your fund in one category then you can recover it from other.

Every trader want to minimize their risk and maximize the profit and balancing your fund is a good working method that can help you to do so.

I Hope you guys understand what i am talking about, Let me know in comment section that if you liked it or not.

Please do not take it as a financial advise. THIS IS NOT A BUY REQUEST. It is just my analysis,opinion and result of readings. So before investing in any Crypto currency, do your own research first. I will not be responsible for any losses

Thanks for reading...

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helpful tips from you.
you are doing very good job.

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