Entrepreneurs: 7 Smart Tips To Grow Your Crypto Investments
Investing in crypto can be a great way to grow your portfolio as an entrepreneur, whether you make it part of your personal investment strategy or your business portfolio. Yet, crypto investments are not for the fainthearted investors. Ideally, you want to have a thorough understanding not only of the growth potentials but also the risks of the crypto market.
There is no denying that cryptocurrency will remain relevant in the future as adoption spreads through the business world. Yet, it is important to remember that crypto remains a novelty that was only introduced in 2009. Crypto mining has been around for less than 15 years and continues to require a huge amount of energy to verify transactions. Therefore, it’s no surprise the crypto market has remained mostly untouched by SMBs.
That being said, we can expect future tech advances to make crypto mining more sustainable and, therefore, accessible to all investors. As an entrepreneur looking to grow your crypto portfolio safely, here are some tips to make the most of the current tech abilities.
#1. Do your research
There is no miracle formula. The crypto market experiences fluctuations as much as any other market. So, if you are going to build a crypto strategy, your priority is to keep an eye on the cryptocurrency price prediction for your currency of choice. With hundreds of currencies to choose from, it is worth following a handful of crypto currencies closely. Bitcoin and Ethereum are some of the most famous ones. However, a healthy crypto portfolio requires diversity.
As a rule of thumb, it is a good idea to invest in the strongest crypto currencies. BTC and ETH, as mentioned above, present less volatility. Yet, you don’t want to miss out on upcoming currencies that may give you a quick win!
#2. Introduce Crypto accessibility
Currently, around 15,000 businesses accept Bitcoin payments, and over 2,000 of these are in the US. As such, if you wish to grow your crypto portfolio, it makes sense to accept crypto payments. This will guarantee greater currency availability for investment growth.
Almost 30% of small businesses in the USA welcome cryptocurrency as a payment method online. However, this doesn’t mean your options should only target digital transactions.
Indeed, with Bitcoin ATM technology becoming available throughout the United States, it would make sense to bring crypto payments into the offline world too. Introducing Bitcoin vending machines can also encourage more customers to invest in crypto and use it for regular transactions.
#3. Work with a crypto specialist
Growing your investment strategies start with financial know-how. Yet, when it comes to the cryptocurrency sphere, it’s important to note that an ordinary finance advisor may not be equipped with the specialist knowledge and experience you need.
Crypto investments require a unique understanding of both the cryptocurrency market and the technology enabling transactions and trading. While you can develop a standard investment strategy with a financial advisor, you want to entrust crypto management to a crypto expert. In many cases, investors work with more than one expert to ensure they have the relevant experience for each investment product.
#4. Invest in long-term strategies
The long-term strategy when it comes to crypto investment is described as hodling by knowledgeable investors. HODL, or Hold On for Dear Life, is a strategy that has been around for 10 years in the industry. It is designed to prevent harmful outcomes from price volatility. To put it simply, hodling comes from the belief that cryptocurrencies will eventually come to replace traditional currencies. As such, long-term hodlers are more likely to benefit in the long term.
How long should you hodl your crypto assets before you can gain from this strategy? In theory, crypto cousins should be kept for as long as possible. In practice, investors recommend hodling for at least a year before selling to make the strategy profitable. This passive strategy can drive high profits the longer you wait.
#5. Educate yourself about trading
Crypto trading is the opposite of hodling. It is a short-term strategy, which consists of buying and selling crypto assets in under a year.
In which case does it make sense to trade rather than hodl? This is where working with an expert who understands the market and price predictions can make a huge difference. Bitcoin has been around since 2009. However, it doesn’t mean that every currency is able to maintain the same longevity. In fact, as there is no regulatory body in the crypto market, anybody can create their own currency. As a result, many cryptocurrencies will have only a short lifespan on the market before they disappear. Investing in a hodling strategy makes sense for long-lasting currencies. Yet, investing in short-lived currencies can also be a great way to maximize profits in a short time.
#6. Accept crypto funds
Did you know that welcoming funds can help unlock the next growth step for your business? It’s the main reason why countless companies decide to go public and sell shares. However, not every business is in a position to create and distribute their own shares. In other words, you already need to reach a certain market size to be able to grow further with this method.
But welcoming funding from a variety of investors from all around the globe via crypto financing can unlock your growth potential too. This can be advantageous for many reasons. Firstly, there is no need for currency exchange for international investors. Secondly, the whole process is more easily accessible, simplifying growing your investment and business.
#7. Diversify your investment portfolio
Building a crypto portfolio positions your business for the economy of the future. However, this doesn’t mean you should focus on crypto only. A healthy investment portfolio requires diversity. Currently, investment experts recommend allocating between 2% and 5% of your portfolio to crypto.
The reason being crypto investments remain volatile for short-term strategies and extremely slow wins for long-term strategies. You do not want to depend entirely on crypto. Protecting your investment from unexpected market crashes requires asset and market diversity. In short, with crypto investments, you don’t want to put all your eggs in one basket.
Are crypto investments the future? Enthusiasts are the first to share their belief and optimism about the crypto market. However, you want to remain cautious as you grow your investment portfolio. The crypto future could still collapse at any time!
Entrepreneurs: 7 Smart Tips To Grow Your Crypto Investments
