Strategizing Your 1 Lakh INR Investment in Cryptocurrencies Since February 2018
February 2018 marked a significant period when the cryptocurrency market was still in its nascent stages, offering an ideal entry for early investors. Since then, the landscape has dramatically transformed, presenting both opportunities and challenges. This article aims to provide a strategic guide for investing 1 Lakh INR in cryptocurrencies, leveraging the lessons learned from the initial experiences of February 2018.
Understanding the Market: Lessons from February 2018
When the cryptocurrency market was younger and fresher, mining was a viable way of earning daily returns with a considerable investment. However, the initial cost of mining equipment often required three times the capital one might possess initially. Therefore, it wasn’t a feasible option for most individuals at that time. Moreover, as the market evolved over the following years, the value of established cryptocurrencies such as Litecoin (LTC), Ethereum (ETH), Dash, Zcash (ZEC), Monero (XMR), and Bitcoin Cash (BCH) surged, making them less accessible for small-scale investments due to their high prices.
Trading vs. Holding: A Balanced Approach
Trading: Since February 2018, the market has witnessed significant volatility, with periods of both explosive gains and gut-wrenching losses. While high-value cryptocurrencies may rise in tandem, their sharp price movements make holding them a passive and risky strategy. Instead, an active trading approach becomes more prudent. By frequently buying and selling, you can capitalize on price fluctuations, thereby increasing your capital. However, it’s crucial to have market insights and technical analysis skills or consider hiring a professional trader to execute trades on your behalf.
Holding: For those preferring a hands-off approach, holding certain cryptocurrencies can be a strategic move. As you accumulate profits through frequent trades, holding a portion of the earned coins can be wise. This not only diversifies your investment but also allows you to see the growth of your holdings over time. It’s essential, however, to keep a portion of your initial investment liquid so you can reinvest in new opportunities as they arise.
Choosing the Right Cryptocurrencies
While established and valuable cryptocurrencies like LTC, ETH, and NEO (formerly Ethereum Classic) can be tempting, their high prices might limit the number of coins you can acquire. Emerging cryptocurrencies like Sia (SIA), for instance, offer potentially lower entry points and the possibility of substantial gains. However, these gains are speculative, and the timing of buying and selling remains uncertain.
Professional Guidance for Novice Investors
For those not inclined to deeply engage with the market dynamics, professional investment management services can be a valuable option. Our company offers a user-friendly platform for investors, where we manage trades on their behalf and share a portion of the profits every month. If you prefer this approach, you can contact Er. Chetan Bhadage for more details.
About the Author
Equipped with 18 years of experience in the civil engineering industry, Er. Chetan Bhadage brings a unique perspective to the world of cryptocurrency investment. His entrepreneurial endeavors have honed his ability to identify innovative opportunities for investors. He is also the founder of a crypto-consultancy firm, assisting aspiring investors in navigating the complex crypto market.
Conclusion
The world of cryptocurrencies is ever-evolving, and February 2018 set the tone for many of the lessons we carry forward today. By employing a balanced approach that includes active trading and strategic holding, you can maximize the value of your 1 Lakh INR investment. Whether you choose to dive into the volatility of the market or seek professional guidance, the key is to remain informed and adaptive. For any further questions, feel free to reach out on Quora or through the contact provided.