by Lorenzo David Suarez on November 20, 2018 

The thing with an investment strategy in crypto currency, especially with regards to long term investment, is that it works much the same way as other forms of investment do. First of all, you need to have a solid foundation on which you would be building your strategy. It is very important, since this is a new form of investment that is still sort of finding its way, that you invest an amount of money that you would be able to live without. This would make sure that no matter what happens you would not be affected significantly at all.

Know yourself

As an investor it is very important that you know yourself properly. You should know that you are always your biggest enemy and risk factor when it comes to trade and investment. It is always your emotions, beliefs, and biases that are calling the shots in these cases. Whenever you are formulating a strategy in this particular context it is very important that you take the utmost care to ensure that you are never part of the equation. You need to understand that there is little rationality to these markets. People here are always being guided by their emotions in their decisions.

The importance of research

Long term investment in the market for crypto currencies is primarily about the fundamentals. This means that you have to do your own research. Actually this is a factor whose importance cannot always be properly expressed in a few words. It does not really matter as to what stage of investment you may be in – you could be at the start or you could be an established player of sorts. You have to do your research properly when you are investing in this market. There are always a few things that you need to check out in these cases such as who is backing the project.

This is of great importance as well when it comes to forming an investment strategy in the context of the crypto markets. You have to make sure that your portfolio is as diverse as possible. When your portfolio is properly balanced it makes sure that your risk factors are mitigated. At the same time, it is also true that your gains would be balanced as well. If you are looking to go for broke you can be sure that one crypto currency will make you immensely rich. However, the losses could be greater as well.

Conclusion

Apart from all these there are also a few other things that you need to know in this particular context. For example the ICOs in these cases could be classed into five major categories such as the following:

• transactional coins
• security tokens
• platform coins
• asset backed tokens or stable coins
• utility tokens

There are also some other strategic components that have to be taken care of in these cases. You need to evaluate your portfolio on a regular basis. You have to use good portfolio trackers as well.