Short Term Investment in Cryptocurrency

Ace Short Term Investment In Cryptocurrency With The Help Of A Professional

The cryptocurrency market exploded by 300% during the COVID-19 pandemic. During this period, a lot of people were socially isolated at home, and many began to dabble in online trading. The market’s growth attracted tons of investors willing to bet their money on it.

Crypto Currency

There are two types of investors: one willing to invest in the longer term and one who invests in the short term to test the waters.

If you’re the second one, you’re probably new and want to peak the opportunity in the crypto market. As a first-time investor, you must educate yourself, learn how things work in the market, and seek help from those who have gone before you– like Pearl Lemon Invest.

If you want to know how to ace your short-term investment in cryptocurrency, call us today.

Long-Term Versus Short-Term Crypto Investing

In the cryptocurrency world, there’s one rule you have to follow: never predict the market. 

Professional investors frequently make mistakes, which is risky for people who only have a basic understanding of crypto. Anyone considering investing in Bitcoin or other digital coins should consider their risk appetite, financial situation, and ability to endure the whiplash that comes with cryptocurrency swings.

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You have to be prepared because investing in something new has its challenges. If you want to join, do your research and start with a little investment. Although cryptocurrency is currently popular, remember that it is still in its infancy.

You should adopt a long-term perspective if you are investing in your future. Markets typically regain the lost value over time, which may also happen with Bitcoin. The IRS has specific requirements for short-term and long-term investment and purchasing and selling cryptocurrencies. This is important to remember when deciding how long you want to hold onto a financial asset.

Best Cryptocurrencies For Short-Term Investment

New investors typically look for short-term investments to acquire a feel of the market. They then choose the best crypto according to their budgets for a longer-term investment.

Here is the list of the best cryptocurrencies to invest in in the short term.

ApeCoin (APE)

This 2022, Yuga Labs introduced ApeCoin, a relatively new cryptocurrency. It is a virtual currency designed to support the Bored Ape Yacht Club ecosystem, the largest NFT platform in the world. A further goal of Yuga is to use ApeCoin to fuel its other offers, including games and the metaverse.

ApeCoin has a market worth of more than $2.4 billion as of the time of writing, trading crypto around $8.50. Although it has had a significant price drop, there is a chance that it will increase when the creators provide new goods.

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Trade safe

The Sandbox (SAND)

One of the biggest gaming, metaverse and NFT platforms is The Sandbox. The platform enables users to trade NFTs, host virtual events, and purchase virtual real estate.

Several of the largest institutions in the sector, including HSBC and Standard Chartered, have been drawn to it.

From its peak, the SAND price has decreased by more than 85%. As a result, there is a chance that in 2022, the price of Sandbox may experience a relief rally.

Kyber Network Crystal (KNC)

Kyber Network is relatively small crypto, but it has the potential for short-term investment success. With this platform, traders can buy, sell, or invest in cryptocurrencies anywhere in the world.

Similarly, you can trade tokens on various networks, including Ethereum, Polygon, Avalanche, and Cronos. According to its website, it has facilitated transactions worth more than $7 billion.

Theta Network

From its all-time high in 2021, the price of Theta Network has fallen by more than 88%. With a market cap of over $1.2 billion, it is now the 56th largest cryptocurrency globally.

Theta is a platform that is, first and foremost, transforming the video distribution market.

Anyone can upload videos in unrestricted storage and get money from them using Theta Network.

Chainlink

Chainlink is one of the cryptocurrencies with the quickest growth. It offers trustworthy and tamper-proof inputs and outputs for sophisticated smart contracts on any blockchain. 

Using Chainlink, investors can transfer payments to anyone, anywhere, by connecting to any external APIs. The overall value of the cryptocurrency is preserved thanks to its decentralised network, which allows the review of the same data before it is used as a trigger.

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Algorand

Algorand is the first cryptocurrency that has the potential to unseat all the major memecoins. Its novel blockchain consensus process outperforms the established proof of stake model. Pure Proof-of-Stake can privately and randomly choose small groups of ALGO holders to vote on proposals and propose blocks. The creators of Algorand have successfully eliminated the danger that a few holders may disrupt the market by using this randomisation.

Ethereum

In the cryptocurrency industry, Ethereum is a well-known player. It has been available since 2015 and is the second-largest digital currency by market value. The cryptocurrency creators are getting ready to release Ethereum 2.0, which will address the significant issue with the speed of transactions that Ether is now experiencing.

Tips For Short Term Investment In Cryptocurrency

If you’re planning to invest in cryptocurrency, here are some valuable tips you can use.

Learn What You're Investing For

When purchasing stocks, it’s crucial to research the companies and read the information carefully. Each cryptocurrency operates differently, and more are being created daily. Hence you must have substantial information before investing. 

Many cryptocurrencies have no backing whatsoever, neither in terms of physical assets nor monetary flow. Investing in Bitcoin, for instance, relies entirely on someone else paying more than investors. In other words, many crypto assets depend on the market turning more favourable for you to earn, unlike stocks, where a firm can increase its profits and drive returns for you that way.

So, be aware of the potential upside and downside before investing. Your financial investment could become worthless if an asset or cash flow does not support it.

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Expect Volatility

Cryptocurrency markets certainly experience volatility, which can’t be ignored. Experienced investors are used to the large price fluctuations frequently absent from regular market trends. It is wise to react logically rather than emotionally during unanticipated price dips by expecting unexpected and occasionally terrifying investing results.

Manage Risks

Cryptocurrency traders might not always have your best interests in mind when providing advice. Avoid making the same mistakes as others so as not to get hurt.

By setting limits on your investment in a particular digital currency, you won’t be tempted to trade with more money than you can afford to lose.

Trading cryptocurrencies involves high risk, and more traders lose money than they make it.

Be Extra Careful On Mobile Wallets

It is too risky to trade or store substantial amounts of any cryptocurrency using a mobile device. Mobile devices are more likely to be physically or technologically compromised. Although handy, using mobile devices to execute transactions or store assets raises numerous security issues that convenience should not trump.

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Don't Go All-in

Finally, it’s crucial to refrain from investing money you need in risky assets. You shouldn’t invest in speculative assets like cryptocurrencies or other market-based assets like equities or exchange-traded funds (ETFs) if you can’t afford to lose it all.

Money that you will require in the next several years, whether for a down payment on a home or an important incoming purchase, should be maintained in safe accounts so that it is there when you need it. And your greatest choice, if you’re seeking a 100% guaranteed return, is to pay off debt. Regardless of the interest rate you pay on the debt, you are sure to make (or save) money. There is no loss there.

Don't Be Afraid To Ask for Help

Aside from what is mentioned above, the most crucial tip you can use is to ask for professional help.

Whether long or short-term investments, it’s important to have a good trading strategy– which is hard to develop, especially if you’re new to investing. Good thing Pearl Lemon Invest knows the best strategy for trading and algorithm strategies to help you ace your short-term investment in cryptocurrency.

If you want to learn about our investment practices or other best strategies in cryptocurrency– get in touch with us.

Forex Without Actually Trading

FAQS

You only need a few bucks to invest in cryptocurrency. For instance, most cryptocurrency exchanges have a $5 or $10 minimum trade requirement. The minimum on other cryptocurrency trading apps can also be lower.

However, it’s crucial to be aware that some trading platforms charge exorbitant fees if you trade only modest quantities of cryptocurrency. Finding a broker or crypto exchange that reduces your expenses is important. In reality, many allegedly “free” brokers include commissions, also known as spread mark-ups, in the amount you pay for your cryptocurrency.

Blockchain technology is the foundation of cryptocurrency. A blockchain is a database that keeps track and date stamps. Blockchains are best compared to running receipts for cryptocurrency transactions. The blockchain database keeps track of all transactions made in cryptocurrency and the ownership of the currency.

Crypto investing involves purchasing and holding cryptocurrency assets to benefit from higher future appreciation. The current market value dips or increases are typically ignored because the assets are held for longer periods. In contrast, a short-term strategy is used in cryptocurrency trading.