If you are looking to generate significant returns from a small investment, you have no option to assume risk, but how much risk and the type of trading activity, will come down to your time preference.
In the context of trading crypto, investing is the low time preference approach – also known as hodling. You’ll need to commit time to research the cryptocurrencies and tokens you think have long term potential; this is known as fundamental analysis.
The more time you commit to your research, the greater your conviction will be. Time spent on Learn Crypto will be helpful will further learning of recommended crypto books and podcasts.
Once you’ve reached a conclusion you place a single entry trade and are done. Bitcoin has historically rewarded those with a low time preference.
Alternatively, you can stagger your investment with small recurring increments – known as Cost Averaging – which is still a low time preference, passive approach, but has the benefit of average some of the price volatility. It is very good practice to record all DCA activity in a spreadsheet.
With hodling and DCA you’re playing the long game, passively waiting for significant upside down the road.
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