Once you have decided how much money you want to put into crypto trading and choose a trustworthy exchange that you want to use, you can go on and invest in the cryptocurrency that sounds the most reliable and promising to you.
The best thing about the crypto trading market is that it has used everything that modern technology has to offer and has become easily accessible for anyone around the world, even for those who have little experience in trading.
There are numerous software development companies that created special applications, called trading bots for crypto trading. For example, one such company is called Bitsgap, which offers different types of robots to traders.
One of the products of the company is a crypto trading bot, which can be used for a number of things. Automated trading bots set on Bitsgap are capable of analyzing the historical data of the market, while also taking into account important events around the world. After this, it can also open and close orders for you.
Because crypto trading is so easy to access, there are millions of people around the world who are becoming drawn to trading cryptocurrencies. Some of the most popular cryptos in the market include Bitcoin, Ethereum, Bitcoin Cash, and many others.
Investing in cryptocurrency is getting more popularity
Earlier this year, crypto prices experienced a huge boom and have hit some of the highest points in history. This has further increased the popularity of cryptos.
Although very popular, many still struggle when it comes to the management of crypto investments. For some, it is getting hard to decide how much money to invest in cryptos, and how to use it as a successful part of their portfolio.
The ideas around crypto investment management vary in the market. While there are some people who have decided to invest solely in the crypto market, there are others who are using crypto as a way to further diversify their portfolios.
It’s very hard to say that any of the crypto investment strategies is better or worse than the other. Both of these strategies have their own advantages and disadvantages and deciding which one to choose can be a very important factor for the success of your trading career.
No matter which way you go with your crypto investment management strategy, one thing is clear: crypto trading is more accessible for investors around the world than ever before. One of the main reasons for this is the increased number of crypto exchanges that simplify crypto trading.
So, without further ado, let’s discuss crypto investment management strategies and discover the best ways to invest in the crypto market.
How much should you invest in crypto?
One of the things that the majority of crypto traders are thinking a lot about is the amount of money they should be used for crypto trading. The majority of crypto traders are using this market as a way to diversify their portfolios.
This means that cryptocurrencies represent only a part of their portfolio, while the remaining assets in the portfolio are anything from commodities, to stocks, or even fiat currencies.
But, how much of your portfolio should be dedicated to crypto? Recently, a huge crypto enthusiast, billionaire, and hedge fund manager, Tudor Jones, talked about his crypto investments. According to the billionaire, for him, the perfect way to diversify his portfolio is to use 5% of his investments for cryptocurrencies.
He continued by saying that the only thing that he is certain about is that he wants to have 5 percent in gold, 5 percent in Bitcoin, 5 percent in cash, and 5 percent in commodities.
Contrary to Tudor’s views, some people prefer to dedicate a larger sum of their investments to crypto. In many cases, people looking for ways to diversify their portfolios usually dedicate as much as 10 percent of their investments to crypto.
On the other hand, there also are crypto enthusiasts who only invest in the crypto market. This means that their portfolio is not full of different types of assets, rather, the only market that they are interested in is crypto.
Getting started in the crypto market
There are several steps that you should take to start trading cryptocurrencies. However, before you go any further, it is very important to decide how much money you want to invest in the market.
This too is a very personal decision. There are some people who start trading with thousands of dollars, while there are some who only invest a few hundred dollars in the crypto market. The amount of money you put into crypto depends on how much you want to make out of it. The bigger your goals, the larger your initial investment should be.
While some investors put 5, or even 10 percent into crypto trading, there are some experts who believe that due to the volatile nature of crypto trading, the best management strategy is to put less money into the crypto market. For example, Michael Kelly, who is a CFA at Switchback Finance, believes that due to the volatile nature of crypto, investors should allocate only 1-2% to cryptocurrencies.
However, keep in mind that there is no minimum amount of money you can put into crypto trading. The majority of modern crypto exchanges offer traders the ability to get started with as little as $10 and grow their money from there.