- Best Low-Risk Opportunities in Cryptocurrency For 2020 And Beyond
- Buy-n-Hold (HODLING)
- We recommend
- Cryptocurrency Trading: Buy-and-Hold
- Cryptocurrency Staking
- 5 Best Cryptocurrencies to Buy for 2020
- Create Content (Blogging / YouTube Influencer)
- 2. You Don’t Take Action
- Start Using Stablecoins
- Best Cryptocurrency Brokers (Non-US Traders Only) – January, 2020
- 2020: TRADING OR BUY & HOLD? (16 Jan 2020)
The cryptocurrency market offers many opportunities for investors with a large number of investment solutions and possibilities.
Best Low-Risk Opportunities in Cryptocurrency For 2020 And Beyond
However, the industry is very volatile, meaning that users can experience massive gains and also big losses. This is why enthusiasts are searching for low-risk opportunities in cryptocurrency for 2020 and beyond so to reduce their exposure to volatility in the space.
This article will discuss some promising proposals to invest in the cryptocurrency market without risking a lot. Indeed, most of these solutions are low-risk options to handle your funds in the crypto industry.
This is perhaps one of the most popular strategies that enthusiasts and investors have been following in the past years.
Holding – also known as hodling – involves investing in cryptocurrencies such as Bitcoin (BTC) without selling the digital asset for a long period of time.
In many cases, investors can hold on their assets for several years before they register gains.
This is considered to be a conservative strategy and it is mostly used by those crypto enthusiasts that are not good at performing trading activities.
It resulted to be very profitable between 2015 and 2017 considering that these years saw a bull market for Bitcoin and other digital assets.
Although this could be a very good strategy for bull markets, it can be very harmful in bear markets.
Cryptocurrency Trading: Buy-and-Hold
If a person purchased a cryptocurrency in early January 2018, it is probably registering losses of over 70% even today. This is why the timing in which the trader enters the market is as important as the period of time they decide to hold these virtual currencies.
Staking is a practice in which a cryptocurrency user holds a certain amount of a digital currency that would provide him with a fixed return for holding the asset. This strategy is similar to buy and hold an asset but with a massive difference: the user will receive an interest in the funds staked.
In particular, staking is a way to earn passive income while holding cryptocurrencies by helping crypto networks become protected at all times.
Compared to Proof-of-Work (PoW) networks, PoS blockchains are much more efficient because they do not consume large amounts of energy.
In the future, Ethereum (ETH) is expected to become a Proof-of-Stake (PoS) cryptocurrency, meaning that it will offer staking services to users.
This could be very bullish for ETH and the whole crypto ecosystem, considering this will be the largest cryptocurrency with staking features and with the PoS consensus algorithm.
At the moment there are very few fixed-income investment tools in the cryptocurrency market.
However, this could grow in the future and help the whole space have new tools for investors to diversify their funds.
By staking cryptocurrencies, users will have the possibility to earn high returns in many cases.
5 Best Cryptocurrencies to Buy for 2020
This would protect them in case the market falls and would potentiate earnings for users during bull markets.
Create Content (Blogging / YouTube Influencer)
Another way to invest with low-risk, although not directly in cryptocurrencies, is just by creating your own blog or YouTube account and promoting the cryptocurrency market.
You can create content about virtual currencies, technical issues related to them, the financial side of the market or simply covering daily news.
This would require you to invest some of your time and some money in case you want to grow faster in the space. Despite that, you can always reinvest the earnings you will have from the content you create.
By investing in the market in this way, you will have exposure to digital assets but the risk will be much lower.
2. You Don’t Take Action
It is also worth mentioning that the potential benefits may also be lower unless you become a famous influencer in the crypto market.
A blog or YouTube are the best ways to start. If you consider you are not photogenic or you have better writing skills, the best thing you can do is to start your own blog.
Start Using Stablecoins
Finally, one of the ways to reduce volatility in the cryptocurrency market is by using stablecoins.
Best Cryptocurrency Brokers (Non-US Traders Only) – January, 2020
These digital assets have a stable value tied to a specific fiat currency. Most of the stablecoins in the space are tethered to the value of the U.S.
dollar, but there are other solutions following the value of the euro or the British pound.
It is always a good option to diversify your portfolio, and stablecoins would help you do this. During periods of bear markets, staying in stablecoins would allow you to enter the market at a lower point buying a larger amount of cryptocurrencies later.
2020: TRADING OR BUY & HOLD? (16 Jan 2020)
However, if you stay in stablecoins during a bull market, you may be able to lose massive gains.
That’s why holding stablecoins is a good strategy when we are in a clear bear trend or at the top of a bull trend close to a reversal.
By holding these stablecoins you are still invested in digital assets and you can still purchase other cryptocurrencies as well.
This article, aimed at sharing with you some of the best low-risk strategies to invest in cryptocurrencies.
While not all of the aforementioned methods will bring the same results, it is always worth knowing them and having them as an option to expand and diversify your