How to invest 1000 dollars in the most profitable way: 3 Cryptocurrencies
Invest in an asset with the maximum profitability: cryptocurrency
We were able to see above how to protect your capital thanks to the security fund. Then we saw how to invest around 20% of your money in the anti-crisis asset that is gold. Now let's look at the remaining 80%. You have to be able to invest them in an asset that will bring you as much money as possible. So how do you invest 1,000? in the most profitable way and to be able to automate it ?. These are cryptocurrencies, especially bitcoin. In fact, it is the most profitable asset today. Attention, this is about knowing how to invest 1000?. If you have 10,000 ?? or more, the proportions will change. In fact, when you are getting started in the world of cryptocurrencies, you should avoid being too impulsive or even too greedy. If you have 1,000 to invest, but your risk aversion is high and you fear your money's worth, consider investing less than 80%.
Once you have decided to enter the cryptocurrency market, you need to know what strategy to adopt. Here are 3 things you absolutely must know for your investment to be successful:
When to buy
What to buy
When to sell
If you master these 3 topics, everything will go like clockwork for your investment of 1000 in cryptocurrencies. You will see that even without investment or even cryptocurrency knowledge, you will be able to get by. How to invest 1000 in cryptocurrencies and get potential profit in a short time? Let's take a closer look.
When to buy cryptocurrencies?
If you are a beginner and have no knowledge of how to invest in assets, it is suggested to use the "dollar cost average" method. The simple principle is to invest the same amount every month at the same time in the same cryptocurrency. So this means that, for example, you will invest 100 in bitcoin every 1 of every month, regardless of the value of the bitcoin at the time of purchase. This programmed investment strategy is used especially in the stock market and it has already paid off. While the value of cryptocurrencies can be a roller coaster ride, you could be a winner in the long run. In fact, if we consider the cryptocurrency and bitcoin charts of the last decade, it is difficult to see the incredible growth of these digital currencies. By using this investment strategy, which will only take you a few minutes each month, you can be sure of generating potential profits in the near future.
Do you know that the best solution to invest 1000 in cryptocurrencies is to bet long term. In fact, you will not make potential profit in a few weeks, but in a few months or years. Unless, of course, you are extremely lucky and are investing just as Bitcoin is about to peak again. You are certainly thinking that it would be easier to be able to invest when bitcoin's price is low and then sell when it costs a lot of value. Your reasoning holds up perfectly and is actually very easy in theory. In practice, it is different. In fact, you must be a professional trader to be able to trade cryptocurrencies properly, because it is a particularly volatile market. You probably don't know it, but 89% of investors in general who have fun trading lose their capital. If you are reading this, it is certainly because you want to make potential profits, not lose them.
What to buy? What crypto currencies?
Now you know when to buy cryptocurrencies. However, to really know how to invest 1000 in these virtual currencies, you will need to be able to determine precisely which currencies to buy. Obviously, the first choice will be made quite naturally: Bitcoin is undoubtedly the queen of cryptocurrencies and is fundamental for potential profit in this market. However, don't fall into the trap of buying only bitcoins, when there are so many other interesting cryptocurrencies out there! There are many promising altcoins that have significant earning potential. Your wallet or cryptocurrency wallet will certainly be made up mostly of bitcoins. Consider the fact that, for example, in 2017, bitcoin was far from being the most profitable cryptocurrency, compared to Ripple that had taken the spotlight.
The 5 smart cryptocurrencies
How to invest 1000? in diversified cryptocurrencies? Let's see together which are the 5 smart cryptocurrencies that are potentially profitable and in which it would be smart to invest. This is bitcoin, of course, but also 4 yield altcoins: ethereum, binance coin, chainlink, and tezos.
1. Bitcoin or BTC:
How to invest 1000 correctly in cryptocurrencies and generate potential profits if we forget about bitcoin? As mentioned above, bitcoin is royalty in the world of cryptocurrencies. Therefore, it is natural that we cannot do without it and that it appears at the top of the list of smart cryptocurrencies. BTC never fails to amaze everyone with its valuable roller coaster rides and dizzying drops. Despite its great volatility, bitcoin remains an essential value in the world of cryptocurrencies since we know in the end that its trend is eternally increasing.
2. Binance Coin or BNB:
The binance coin was born from the Binance platform. One of its main advantages is that you can greatly reduce trading fees on this exchange. This reduction in trading fees is one of the most attractive aspects of BNB, especially since the Binance Dex platform is a staple in the cryptocurrency market. You will definitely have to check it out one day. In addition to this, the binance coin is also used as a means of payment and its value continues to grow. Basically, it presents a very interesting potential for the future and therefore benefits.
3. Ethereum or ETH:
You should know that most cryptocurrencies are not all "currencies" strictly speaking. Most of the time, they are mostly startups, presenting innovative projects that it would be smart to bet on. At that time, investing in these cryptocurrencies is a bit like buying back shares of these companies. Ethereum's project is to create decentralized applications so that we can do without middlemen in most industries, such as finance, economics, entertainment and art, in addition to the world of computing. This is a goal that has a very good chance of success, so it would be interesting to be part of it worldwide and acquire this virtual currency.
4. The Chainlink or LINK:
Here is another crypto currency with strong future potential due to its strong project. In fact, Chainlink aims to create smart and automatic contracts. These computer programs are registered on the ethereum blockchain. LINK has forged strong support links like Swift. The explosive growth of chainlink is such that it was impossible not to cite it as a cryptocurrency with a very high profit potential. Therefore, investing in it is a good plan that should not be missed under any circumstances.
5. Los Tezos or XTZ:
The fifth crypto currency offered is TEZOS. It also has great future potential, which means the possibility of securing potential earnings. When we look at the charts of the XTZ, this virtual currency has everything to reach the highest peaks in the market. Tezos is also one of the top 20 digital assets by market capitalization.
Rebalancing of invested capital
You should know that the amount of cryptocurrencies to invest in depends mainly on the money that one is willing to invest. So how do you invest 1,000? in the right way in cryptocurrencies ?. Divide this amount by 5 and invest 200 in each of these altcoins. If you have 100 to invest, invest only in bitcoin. And if you have 10,000, you can invest in 15 cryptocurrencies.
So, let's start with the example of 1000 invested and distributed among 5 cryptocurrencies. Now, a secret that will allow you to always secure your property and guarantee the best possible profitability is to rebalance: If you have invested 200 in 5 crypto currencies, some can grow to multiply and others not. In fact, it may be, for example, that after a few weeks, the 200 in BTC has become 325, while the 200 in ETH fell to 180 and the 200 in LINK fell to 165. You will have to rebalance the scale to have everything reset to 200. The secret is that the more you rebalance your investment, the greater the potential returns.
When to sell your cryptocurrencies?
Traders run and sell all the time. Except you are not a commercial trader and this strategy can be dangerous if you don't master it. How to invest 1000? in the most profitable way and then sell them to recoup your potential profits? The best solution is to sell 50% as soon as your crypto capital has doubled.
Don't make the mistake of buying cryptocurrencies and leaving them there so they can only be viewed after a few years. Your best bet would be to rebalance them every hour and sell them at exactly the right time.