As the cryptocurrency market booms, investors are looking for new and innovative ways to maximize their returns and the Coinstrat bounty program allows them to do exactly that. One strategy that is gaining popularity is dual investing- splitting your investment into two separate coins and ICOs. By careful selection which currencies to invest in, you can spread your risk and hedge against potential losses. Here we explore three reasons why smart investors are making dual investments in today’s volatile cryptocurrency market.
COINSTRAT has released an advisory report on how investors can use dual investments to improve their portfolio performance with specific examples from the current market environment. In this article, I will summarize some key points from the report.
1) Diversification is key:
By investing in multiple cryptocurrencies (Bitcoin, Ethereum, Litecoin), you reduce your risk as opposed to investing all your funds in just one coin.
2) Coins with low market caps offer great potential for growth:
Smaller coins or ICOs with lower market caps often offer a higher return on investments. Investing in these smaller coins can be a great way to get in on the ground floor of a potentially lucrative investment.
3) Understand the risks and rewards:
It is important to research any potential investment and understand the associated risks. Additionally, investors should consider if they are comfortable with short-term or long-term investments and make sure that the currencies they choose to align with their goals.
By carefully selecting cryptocurrencies and ICOs to dual invest in, investors can safeguard against potential losses and maximize their returns in the volatile cryptocurrency market. COINSTRAT‘s report provides insight into how to best approach dual investments, and investors should take advantage of the detailed information and analysis provided in order to make wise decisions when investing.
Advantages of Dual investment
Your stablecoins will increase:
By dividing your investment into two separate coins, you can minimize the risk of volatility. Since each coin will operate independently of one another, if one coin’s performance falters, the other coin’s value will remain relatively stable. This can help protect your investment and maximize returns in the long run.
By targeting coins with low market caps, you have the potential to receive faster returns on your investment. Investing in smaller coins could provide investors with the opportunity to capitalize on potential future increases in price.
Short-term volatility and compound income:
Investment is always fraught with danger. This technique should only be employed by experienced, psychologically stable investors when the market is turbulent enough to support such an investment plan in order to maximize earnings while limiting losses if things go wrong too rapidly without proper preparation.
Investing in cryptocurrencies can be a great way to make money, but it can also be a bit risky. The key to success is to buy low and sell high, and that’s where the CoinStrat High Sell Dual Investment product comes in.
This product allows you to invest in two different assets at once, giving you the potential to make a profit no matter which way the market goes.
For example, let’s say you invest in BTC and ETH. If BTC goes up in value, you make money on your investment. But if ETH goes up instead, you still make money! This product is a great way to hedge your bets and make sure you always come out ahead.
When prices drop sharply, buy the dip:
When prices drop sharply, it is often the best time to buy. This can be a great opportunity for investors who are able to purchase coins at a discount and then benefit from their future increase in value.
If you’re looking for a BTC investment that offers a low price and dual investment potential, CoinStrat’s Buy Low product is a great option. With a current price of just $19,500, this BTC product offers investors the ability to purchase BTC with Tether (USDT) while also providing exposure to other assets such as ETH, LTC, and XRP.
In addition, the Buy Low product also offers a built-in stops loss feature that protects your investment from downside risk. As a result, this is an ideal investment for those who are looking to diversify their portfolio with a low-cost BTC product.
As a writer, Ruben is an advocate of blockchain technology and cryptocurrency in general. He writes about all things from cryptography to economics, with a focus on how it applies to cryptocurrencies. He is also passionate about writing about topics such as decentralization, open-sourced software development, and copyright law.