The financial markets are a vivid, dynamic and ever-changing ecosystem. Investors retail and institutional endow in various instruments, stock, bond, bullion and cryptocurrencies. The last one has awarded exceptional gain in the last few years, but certainly with significant inherent risk. Consequently, investing in the crypto market is very taxing, often overwhelming. With time Blockchain technology is becoming more prevailing; as more funds and talent are sipping in, network technology is upgraded and more accepted in society. You often watch news about the Bitcoin crash; it inevitably becomes viral. But take a breath to introspect; Bitcoin is in a robust uptrend for the last twelve years, from penny to $47,000.

Long term perspective

But to reap the rich rewards, you need patience, a long-term perspective of at least ten years. Volatility is an integral part of Bitcoin, so some wild swing is always on the card. If you look for a short-term investment, Bitcoin is not the cup of tea to suit your flavor. A well-planned investment strategy is a set of courses of action designed to make a judicious decision. The integral part of the strategy is where to invest and when to invest. Most crypto investors are in a dilemma about the approach and risk/reward in crypto investment.

Two types of investment strategies

There are mainly two types of investment strategies; conservative and aggressive. In the former one, portfolio management focuses on preserving wealth with low-risk exposure. An aggressive strategy’s prime intent is capital appreciation with medium to high-risk exposure. Both plans involve risk and reward; the suitable one depends on your age, risk appetite, available resource and aim. An investment strategy is more like a handbook, defining the goal and risk tolerance, with a commitment to wealth appreciation. It envisions future goals with calculated risk, independent thinking and clear vision makes you less susceptible to psychological biases. The strategy reduces the risk associated with the investment; it calculates the risk and clearly sets the maximum acceptable risk.

Risk is an intrinsic part

Not adopting an investment strategy have grave consequence, the risk is an intrinsic part of investment irrespective of instrument you choose. The especially crypto market is infamous for its wild swings; it will erode your resource in no time as you will be subjected to greed or fear time and again. The indecision will lead you to a much riskier panorama, increasing potential loss. From Bitcoin news you will get information about various crypto investment strategies. The potential earning increase significantly in long-term investment plans. You could enjoy considerable wealth appreciation if you select a strong, profitable project and hold your portfolio till its value enhance.

Evaluates its growth opportunity

After choosing a project, evaluates its growth opportunity. Look into the fundamentals of the project, make sure the coin has a purpose, the project management is equally imperative, they must be competent, reputable mingled with experience. Compare the project with similar ones and evaluate if the guaranteed return is feasible. Read the whitepaper diligently; when a cryptocurrency raises money through ICO, the publish whitepaper. The document inscribes the problem the project intends to resolve, the project`s architecture, interaction with users and elaborate project description. It articulates about coin distribution or smart contract; it further clarifies the number of coins available in circulation or destroyed over time, coin allocation to management/ advisors, and reserve.