Often even experienced investors are wary of investing in cryptocurrencies. No wonder the risks are pretty high because the market is volatile. However, nowadays crypto investments look more and more attractive. The reason is that the blockchain industry in 2023 is becoming more stable, and some countries are introducing regulation of the market at the legislative level. Smart contracts are back in trend, which means it’s time to think about a profitable investment.
Why should I do crypto investments?
So, some investors chose blockchain technology (smart contracts), and they weren’t wrong. Several digital currencies have risen very strongly, and as a result, they have been able to make excellent profits. Here are a few reasons why traders and investors choose crypto investment:
- One of the reasons cryptos came into their portfolios was their resistance to inflation. Unlike fiat money, most crypto is issued in limited quantities. Plus, in 2023, government regulation of digital currencies and smart contracts is just evolving, which means no one will be able to confiscate them. This makes investing in crypto for a long time profitable and safe.
- Bank transactions can be insecure, and banks can cease to exist without paying customers back. In the case of the crypto and NFT industry, this will not happen. Blockchain provides decentralization, which means it will be a great investment option for those who would not want a bank to be involved in transactions.
The third reason is that blockchain technology has made waves in the financial world. Those who believe in its potential are not just using smart contracts for their own purposes. They support modern technology, which could make a significant profit in 2023.
How risky are crypto investments in 2023?
Long-term investments in crypto are the best way to preserve, accumulate and multiply capital. Cryptocurrencies are high-risk assets, but experienced investors with good crypto portfolios and traders categorize them into high, medium, and low-risk investments. Unfortunately, more often than not, the level of return is corresponding.
Nevertheless, it is rational to take high risks in case of short-term investments and fix the profit as soon as the coin rises in price. But if you’re not a thrill-seeker and are new to the crypto space, look into low-risk investments. This method can be called the best long-term crypto investment for beginners.
Is it worth investing in cryptocurrencies for the long term in 2023?
Choosing the right token is half of the job. These are coins that entered the market several years ago, and working based on smart contracts demonstrated a strong idea and benefits and proved the ability to survive even during long market downturns. Like the first crypto, this is their main advantage – growth even after the strongest drops. Such coins are quite suitable for long-term investments. Choose and buy one or more of the already traditional coins on the crypto market, calculate the desired profit, and wait for the price at which you can sell the coins and fix that very profit.
What cryptocurrencies should I invest in long-term?
The answer to this question should be given to the investor himself before creating a crypto portfolio and making long-term crypto investments. In order to answer you need to study information about blockchain, and learn how to analyze crypto tokens, NFT, and other projects for long-term crypto investments. To analyze crypto or NFT for the reliability of investments and before adding them to the portfolio, you should take into account a few important factors:
- market capitalization volume;
- the maximum supply of coins (total issue);
- possibility and method of mining or stacking;
- application methods;
- distribution of tokens between the team and users;
- publicity and reputation of the team;
- availability of long-term crypto investments on the project roadmap;
- listings on major crypto exchanges;
- adequate community in social networks.
These are not all the factors that matter for the viability and potential growth of a coin’s price. But even from this list, it is clear that crypto or NFT analytics is hard work. Understanding the industry requires regular news monitoring, looking for correlations between events and historical chart movements, reading reviews, and learning how technology works. If the prospect of dealing with each project for several days frightens you, but you want to invest as soon as possible, choose popular coins. We are talking, of course, about those that have survived the crypto space, downfalls, and upgrades, and have retained the community’s faith and value.
How you make crypto investments is not unimportant for reliable investments. It’s about reliable partners among cryptocurrency exchangers, safe wallets and transactions, and a stable psychological state.
Do not work with crypto exchangers with a dubious reputation, be cautious about personal security and safety of transactions, personal data, and funds. Choose exchangers with positive reviews, adequate managers, and optimal market conditions.
- distribute your crypto portfolio among different cryptocurrency wallets:
- keep the number of coins necessary for trading on exchange ones;
- keep small amounts in your portfolio for daily transactions on hot online wallets;
- large sums trust hardware (cold) wallets or hot, but with impeccable long-term history without hacks.
And in conclusion – do not be influenced by the news and the market mood, avoid panic sales (and better to buy during this time) and make every decision of crypto investments consciously. Deal great contracts and have a great investment!