It is often a subjective decision to invest in crypto. Nevertheless, it must be done cautiously. While a small amount invested can quickly turn out to be massive during bull runs, there is a 9 in 10 chance that unwise investments will result in zero returns or losses. Put life-changing sums into a gamble, and you will be in for a rude awakening. Nevertheless, a combination of stable investments, proper timing, and DCA are key in this wild west of DeFi.
An Overview of Crypto Investments
Without a doubt, crypto investments can lead to life-changing gains and utter misery when done carelessly. Nevertheless, well-planned investments using a combination of risk management and gradual financial exposure often prove rewarding with time. Going all in with all you have saved up has more drawbacks than advantages for your finances. Researching based on professional financial principles coupled with the promise of innovation also pays off big time.
Investors in crypto projects like Solana or gaming projects like Enjin and Axie Infinity earned so much by carefully investing. The long-term success of these investments resulted from a combination of several factors. These factors include timing, platform, exit plan, the ratio of the amount invested compared to the complete portfolio, and the research put into understanding the project.
Ideally, anyone can replicate the successes recorded by renowned crypto investors with the right mindset and plan. Although, our concern here is to determine the best timing and amount to invest in the crypto market.
When Can You Invest In Crypto?
The best time to invest in the crypto market is when the prices are down. Most analysts believe the bear market or downtrend starts after a 20% decline from a new all-time high. Nevertheless, as we have seen in the crypto market, the real bottom starts from around a 50% – 90% decline.
Again, the fall in crypto prices is often triggered and worsened by the failure and collapse of one or more crypto projects that often seem promising initially. Thus, any investor who hopes to invest in crypto at the bottom of the trend must wait for such big events before buying. Usually, the bigger the project, the greater the fall in price and the bigger the opportunity for investors to make life-changing gains.
Another great recommendation for the best time to enter the crypto market is a timeless strategy or dollar cost averaging. Proponents of this strategy believe that investors often have spare amounts after investing in major stable physical or digital assets. Since losing such an amount has no grave consequences, the investor can buy crypto with a part of it on several occasions. Overall, the strategy minimizes the impact of significant losses while increasing the chances of profit from an uptrend.
How Much Should You Invest In Crypto?
Equally, the amount to invest in crypto, even on the best-decentralized exchanges, depends on how much you have. If you have $1 million, for example, you have a higher risk tolerance than someone with just a few hundred or thousands of dollars.
The size of your portfolio can also play a huge part in the gains possible when you invest in the cryptocurrency market. A bigger portfolio means more exposure when you invest the recommended 2% – 5% of your investment portfolio. For example, 2% of a $1 million portfolio is $20,000, while 2% of a $3,000 portfolio is $60.
Unless you invest in stable investment instruments like NFT Securities or purely stablecoin yield farms, it is advisable to use at most 5% of your total portfolio. If you are an all-in degen who believes so much in crypto, you may want to invest more, but always research and be quick to find the red flags before they find you.
Use a Crypto Dex After Deciding How Much and When
Decentralized exchanges or crypto DEXs are the best platforms for crypto investments. First, they offer self-custody, which leaves the asset’s control in the owners’ hands. Next, decentralized exchanges offer privacy and freedom from censorship or human misconduct since users rely on code and math to process transactions. Decentralized exchanges also charge a lower fee for transactions, especially when they are built on scalable blockchains like the Binance Smart Chain.
DEXs also make it easy to securely hold digital assets like NFTs while exploring other investment options evolving in the decentralized space due to constant innovation. The best DEXs combine a flawless user experience with unique products designed to liberate their users financially while giving them full control of their investment decisions, options, and assets. After you have planned out your strategy, you need to execute it on one of the best DEXs to increase your chances of success.
A Recommended DEX For Crypto Investment
Looking at the BSC network, for example, Pandora, a DEX committed to users’ financial growth, offers high-yields and innovative products for users of the platform or Pandorians. A close look at the platform reveals a long-term commitment to innovating and offering the best based on fairness and transparency.
The platform uses an elaborate user-level system to rank users based on how much they use the system. Users can earn experience points through hashrate-eligible trade execution, DroidBots upgrades, NFT trading on PandoMarket, buying tickets, unlocking staking slots, and opening PandoBoxes. The Pandora exchange constantly innovates and develops new products centered around its users and how they can get the best out of the platforms.
Aside from occasional events where lucky and qualified winners receive rewards directly to their wallets, Pandora has launched the first NFT Securities. It is a stable investment instrument issued in partnership with crowdfunding and financial giants The NVC Group.
Investors interested in stablecoin investments or high-yield farming can also check out the Pandora yield farm featuring stablecoins and high-yield native assets. Auditors of Pandora’s smart contracts have audited some of the best DEXs in the crypto space. The exchange also has a bounty for grabs by experts who detect a bug.
Conclusion
The best time to invest in a crypto is during the bear market. Still, a combination of strategies like stablecoin investment, stable asset investment, and dollar cost averaging into high-yield native assets would prove effective. Without proper research, planning, and checking out what others have done before, success from a crypto investment may end in a terrifying nightmare.
The only way to stay safe is to use the right platform, research, strategize, and restrategize. Also, stay consistent with the platform you choose to stay updated on what’s going on with your investments. The best platforms to invest in crypto may not be the most popular in the space because their offerings are just reasonable. However, a close look at these platforms will always reveal a commitment to long-term value provision and innovation in the community’s interest.
These contents are for general information purposes only. They are not investment advice, a recommendation, or solicitation to buy, sell, or hold any digital asset or engage in any specific trading strategy. Some crypto products and markets are unregulated, and you may not be protected by government compensation and/or regulatory protection schemes. The unpredictable nature of the crypto asset markets can lead to loss of funds. Tax may be payable on any return and/or on any increase in the value of your crypto assets, and you should seek independent advice on your taxation position.
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