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The five main strategies for investing in cryptocurrency, from HODL to arbitration



Many people think that there is nothing easier than investing, even when it comes to familiar things, such as stocks of large companies, precious metals or bonds. To engage in this type of activity, you need to constantly keep abreast, as well as in time to buy or sell.

Investing in cryptocurrency is fraught with difficulties, and each has its own characteristics. Buying and storing popular coins is just the tip of the iceberg. There are other cryptocurrency investing tactics that may be more effective. Below will be considered the most popular among many traders.

It should be noted that by investing in digital assets, we invest in protocols on which the future will be built, for example, investments in cellular communications in general or in TCP / IP. It is as if you had the opportunity to independently invest in mobile phone technology and receive a commission for each call made with each operator.

Thanks to the blockchain, this became a real opportunity. The markets for this technology are much more global than financial markets in general. Everything that is somehow related to cryptocurrency exists in the global information field and does not have clear geographic or national links. The creators of the project are often scattered around the world, German startups trade on the Hong Kong stock exchanges and so on, trading continues 24/7.

HODL: purchase and storage of cryptocurrency

To gain access to assets, a logical starting point is to acquire several key options, such as Bitcoin or Ethereum , and then forget about them for six months or more.

You can add a portfolio of coins from various industries that have certain knowledge. For example, cloud computing, artificial intelligence, e-commerce, and cybersecurity.

As for the ICO , experts recommend that newcomers refrain from such projects. Thanks to advertising it is very easy to be deceived, because to participate you need to have enough knowledge and experience that will allow you to draw the right conclusions.

If there is a desire to add speculative projects to the portfolio, it is better to forget about the ICO and choose a few coins that are already being traded, though not in the most popular category, but have a good potential to stay in the top 100 in terms of market capitalization.

Bitcoin Derivatives and Top 20 Coins

Just buying and holding tokens is not enough. We need tools to hedge risks, because the market, alas, is not capable of growing indefinitely. There is a huge amount of futures contracts. In order to feel more confident, it is better to master short positions, which is much easier than trying to change tokens back to dollars each time.

Various options are also useful for cryptocurrency traders , including swaps, margin trading, etc. Tools of classical financial markets allow you to create the optimal strategy for any level of risk.

Opportunistic Investing

The biggest money in cryptocurrency is made in areas that are currently unavailable to the regulator. These include semi-insider trading.

In addition, some projects offer users to consistently perform tasks, read messages on social networks, etc., for which they receive a certain profit. In this case, you can ignore the technical analysis, you can just forget about it.


Arbitrage is a great opportunity to make a profit without doing anything. In the cryptosphere, arbitration bots are much more efficient than in the real world. You can make a profit in the amount of 5% to 20% per month. The risk is minimal and depends only on the course or force majeure, such as the intervention of regulators, etc.

The essence of this tactic is simple: the same token can have a different price on different cryptobirds . A trader can buy them on one platform and sell them on another.

Creating arbitration bots is a simple task for a team of qualified programmers, although there are also ready-made solutions available on the market. It is not always possible to get big profits, but for a novice investor this is a good option to start with.

Not only tokens

There are projects that are somehow related to cryptocurrency, but at the same time investing in them does not mean buying tokens. For example, you invest in shares of a company that implements blockchain technology in real life or in one way or another is engaged in the development of technology.

This could be an electronic system based on the blockchain, a media resource of a service company with an emphasis on technology, a payment system or an exchange. In other words, all areas where business in the real world intersects with innovation.

Another example is an investment in a company that is introducing blockchain into the industry. Such a startup earns good money and, at the same time, is constantly developing in parallel with the blockchain.


Each tactic deserves attention, but at the same time requires caution. You should not count on a 1000% profit per year, since many investors who thought about this have already lost all their savings in risky ICO projects.

It is important that when choosing the tactics a balanced approach is chosen, only in this case you can make the right decision.