Trading in cryptocurrency is an increasingly common and lucrative investment strategy for a wide range of people since the blockchain technology the cryptos (cryptocurrencies) use to generate value also keeps their investments secure (see the parent article for more information). A cryptocurrency investment strategy, then, simply refers to the process of investing in these alternative currencies.
While Bitcoin is the most famous cryptocurrency, it is not the only one. Alternative cryptocurrencies—called alts or altcoins—promise similarly high rewards for investors. These altcoins may be direct Bitcoin competitors deriving value from mining techniques or from being pegged to stable traditional currencies. They may also be tokens, a type of currency provided by corporations that may or may not come with shares in the company itself.
Though new, cryptocurrencies markets are both fast-growing and secure; even sovereign nations have created or are considering creating their own cryptos. This new market has captured the imaginations of millions of people around the world, who have already begun their own investment and trading plans. For most, they have found great success.
As with any investment strategy, the best place to start is the individual’s goals, needs, and resources. Do you want to enhance your retirement plan? Do you have an opportunity to trade in a company’s tokens while using the company shares that come with it to influence the company’s actions?
Essential external data begins with general investment knowledge, especially about the stock market as crypto investments operate more like forex trading than other, beginner associated, investments.
Also important is knowledge of blockchain technology and the type of cryptocurrency you choose to use, as mentioned above. Some resources can be found closer to the bottom of this article, and in the community here on Data Hunters.
An additional facet of a good overall investment strategy is not to put too much resources into cryptos. In other words, a good cryptocurrency investment strategy should remain just one part of a financial portfolio. This is especially true for cryptos due to their particular market volatility.
As noted, cryptocurrencies are speculative by nature and therefore highly volatile. Most are not pegged to stable national currencies and, while the decentralized nature of the market appeals to individualists attracted to this type of investment in the first place, the lack of oversight and regulation is very risky.
Match-Trade Technologies announced on Tuesday the launch of its new digital currency data feed for 25 popular cryptocurrency pairs.
The company detailed that the data feed uses a proprietary algorithm to ensure prices’ speed and accuracy in various conditions, and the feed’s liquidity is sourced from “biggest spot/futures exchanges and the most prominent institutional market makers.”
RDA Index’s dataset – ‘RDA IV Ranking: Cryptoasset Ranking by Intrinsic Value’ provides , Retail & Commerce Data and Stock & Market Data that can be used in and Cryptocurrency Investment Strategy
Who’s Good ESG Incident Analysis tracks and analyzes ESG issues using AI. They use public news to assign ESG risk scores and monitor trends
WatrHub Solutions identifies early stage investment opportunities by connecting target clients with their audiences.
dxFeed Data provides a wide range of global market data and data analysis services
Truvalue Labs Platform provides ESG market data and analytics to help users make more informed investment decisions. Review them here