There are people out there, as seen in this video, who want to buy three bitcoins, and hold them for the next ten years, hoping that the future will turn their bitcoins into hundred thousand or even million dollar investments. Their crypto money management style is extremely passive, and considerably high risk.
Remember, a Bitcoin might be worth a million dollars in the future. But it might not. And that is not the crypto money management style that you should be doing. If you are interested in turning cryptocurrency into daily profits, you cannot be buying coins and holding them for the long term. It’s the wrong crypto money management style for traders.
The people who are earning real money in crypto have a completely different crypto money management style, where they go out every single day of the week, study the technical and fundamental indicators, and make trade decisions. Some, especially those who run around without a strategy, or those who try to combine multiple strategies, generally lose their money. But those who have a plan, stick with it, and continue to grow profits have a crypto money management style that works.
Here’s why day trading just makes sense for people trying to earn a living, rather than buying a couple of Bitcoins and holding on to it for a long time as their crypto money management style. When you decide to hold onto a single investment item for the long term, you are not diversified at all. You haven’t hedged your investment. Essentially, you are taking one shot. If the Bitcoin goes up, you’re a success. If the Bitcoin disappears, you lost.
Smart investors aren’t playing the roulette table and putting everything on lucky number seventeen. Their crypto money management approach is to spread their investment all around a number of coins that meet their criteria. If you need to think of it as roulette, this investor is more like the guy who spreads his tokens all around the roulette table. His odds of success are significantly higher, his risk is much lower, and while the first roulette player is in for a big score if the ball lands on seventeen, our second roulette player is much more likely to win on every spin, even if the rewards are not quite as high.
When you jump into the cryptocurrency trading arena, and start investing fifty, or hundred or a thousand euros, you become an active investor. You are taking your future into your hands, and deciding that you, based on your analysis and experience, or based on the experts that you rely on, will determine whether or not you are going to earn high profits today. It’s a form of crypto money management that you can embrace, because you are in control of the situation.
When it comes to crypto money management, you want to turn your industry knowledge into a level of profits that can change your lifestyle.
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