What is the recommended investment strategy?Last revision: November 24, 2017
Since, no one can know what will happen in the future, we recommend this simple investment scenario to maximize gains and minimize risk for the passive investor.
Choose a starting amount you would like to invest, for example: 50000EUR.
Choose a smaller amount to invest monthly/quarterly, every 6 months or yearly, for example: 2000EUR monthly.
Start by buying cryptocurrencies you want for 50000EUR and every month add a buy order for 2000EUR.
At the end of the year you will invest in total 74000EUR.
By buying monthly you will average the cryptocurrencies price. If the market is flat you will neither gain nor lose. If the market is bullish, you are still buying in an early stage of these technologies, so the risk of overpriced buying is minimal. If the market is bearish, you will gain from decreased prices.
Having a starting investment will protect you from a case of prices skyrocketing in a short time without you having bought anything at all.
Not investing all the amount at once will protect your funds if the market collapses.
If the price of your cryptocurrencies keeps falling or decreases over a period of more than 1-2 years – sell that cryptocurrency.
If the price doubles from your initial investment price – sell 50% of this cryptocurrency – in this case you will have 100% of your initial investment back and still hold a reasonable amount of cryptocurrencies.
In case the price doubles again, sell 5-10% of your cryptocurrencies – in this case the first time you will get 20-40% ROI from your initial investment and still hold a reasonable amount of cryptocurrencies.
Continue to sell 5-10% of your cryptocurrencies every time the price doubles.
In case of price doubling 6 or 7 times stop selling the 5-10% and keep the remaining. This way you will have a great ROI on your investment and still hold a reasonable amount of cryptocurrencies.
We do not want to inflate fake hopes for our investors or hype these currencies, so we do not share predictions or estimations, but we think that cryptocurrencies should be considered an extreme growth asset. If a cryptocurrencys succeeds we ourselves expect around 50-80X ROI for our own money during the next 5-10 years.
Alternative strategy: If you can tolerate higher risk, simply buy and hold for as long as you can - this will give you significantly higher returns together with higher risk.
P.S. If you are reading this and thinking to yourself: no way my investment is going to double - this strategy is insane. Let us remind you, that our previous portfolio CRYPTO5 did ~38X in 18 months.
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