Zara accept payment in bitcoins.
In 2010, the first purchase was made with bitcoins of pizzas worth 10,000 bitcoins. However, if that man had saved and thought of it as a long-term investment, it would be worth billions of dollars now. Cryptocurrency is a volatile currency with jerking highs and lows but it has the potential of being a game changer in current and future times.
More than 21,000 different cryptocurrencies are available on the market, and investors are keenly interested in their rapid expansion. But even in the best-case scenario, picking the optimum blend to maximise your long-term investment return can
be challenging in a cryptocurrency bearing market that can be overwhelming at times.
Here are some strategies to uncover the mysteries of how bitcoin might develop into a long-term investment.
Invest with strategy :
Failing to plan is planning to fail.
Long Term Investment backed by strategizing with your investment goal can lead to cut down loss in future which simply means invest in what you can afford to lose. A newbie can easily consider 5% and experience 10% of its income with continuous gain of profit at favourable return rate.
Choose the right mix of storage:
While taking in account of long term investment , it have must to have a safe storage. Hot storage is online wallet while cold storage is offline wallet in drive. It is referred by experts to keep your 80% investment on cold wallet to prevent hackers the access. Hot wallet should have some for trade and transactions and short-term purpose.
Risk Management Strategy:
No matter how much loss tolerant you might be , risk management strategies help to limit loss especially if it is for a long term investment.
Using 1% Strategy:
Using 1% and investing 1% of total capital from your investment e.g if you buy 100 bitcoins and set a loss limit of selling at 99 than you have a 1% loss of your total investment capital.
While not setting a 1% capital limit and the currency dropping to 0, it doesn’t matter with your size of the investment but the risk of losing the amount you invested. This strategy is highly recommended for cryptocurrency as it is highly volatile.
Diversify And Hedge:
Investment risk is suddenly reduced if it is spread over several portfolios. Due to the cryptocurrency’s frequent and erratic rise and collapse. By dividing the token into one or more with potential future gains risk is reduced.
Here are few potential cryptocurrencies for long term investment as
Bitcoins:
The bitcoin is the largest currency and has the advantage of being the first born. It is the best performing investment asset for ten years.It is used for online buying and selling and as safe long term investment.
Many companies like Microsoft , PayPal and Rabuten accept it as payment method with Colorado becoming the first to accept taxes in bitcoins.
Ethereum:
If bitcoin is the PC, ethereum is the internet naming a block chain platform and a native currency name.It has emerged as a decentralised app platform (dApps) and is the second largest cryptocurrency by market cap.Its Smart Contract Application made it favourite for Developers.It has upgraded the Merge developing the network of blockchain from proof to work to proof to stake protocol maintaining security and sustainability to the network.
Chainlink:
Chainlink launch 10 2014 is the fifth best cryptocurrency to invest followed by birds first blockchain oracle network.Oracle are the most important blockchain technology integral to blockchain expansion.
It has upgraded its white paper built off chain network on top of oracle technology reducing computational straining on Ethereum main net.
It also has off on blockchain real time data.
Its token is traded as Link serves as a transaction network of 3.5 billion market and placing it within 25 largest cryptocurrency.
Polkadot:
It is the best long term cryptocurrency although launched in 2020.But it still maintained 7.3 billion market cap. It is built to connect various independent blockchain to a single unified network and create a new chain.
It has a blockchain network for developer and decentralized systems and a currency as well .It has access to proof to stake and transaction and digital asset and token could cross easily.
Polkadot competes with Ethereum but analysts expect it to maintain.
Conclusion:
Due to its extreme volatile nature, investing in cryptocurrency for long time run carry a lot of risks. However, for an investor’s standpoint , it is a gold mine with untapped potential and historical support. Maintaining numerous portfolios and protecting them as a novice and experienced cryptocurrency investor could produce favourable results in future. However,it is crucial to choose an investment value that is appropriate for your budget and loss rate.
Cryptocurrency’s relevance and development cannot be overlooked because it is accepted as payment for goods, services, and taxes in many locations. Without a question, cryptocurrency is the financial system of the future.
