{"id":1324,"date":"2022-08-26T12:11:27","date_gmt":"2022-08-26T12:11:27","guid":{"rendered":"https:\/\/digitalcoinprice.com\/blog\/?p=1324"},"modified":"2023-03-30T10:48:44","modified_gmt":"2023-03-30T10:48:44","slug":"crypto-strategies-they-stack-up-2022","status":"publish","type":"post","link":"https:\/\/digitalcoinprice.com\/blog\/crypto-strategies-they-stack-up-2022","title":{"rendered":"Popular Crypto Strategies: How They Stack up in 2022"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_73 counter-flat ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Content<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #223c50;color:#223c50\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #223c50;color:#223c50\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/digitalcoinprice.com\/blog\/crypto-strategies-they-stack-up-2022\/#Crypto_Strategies\" title=\"Crypto Strategies\">Crypto Strategies<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/digitalcoinprice.com\/blog\/crypto-strategies-they-stack-up-2022\/#Risk_Warning\" title=\"Risk Warning\">Risk Warning<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/digitalcoinprice.com\/blog\/crypto-strategies-they-stack-up-2022\/#HODL\" title=\"HODL\">HODL<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/digitalcoinprice.com\/blog\/crypto-strategies-they-stack-up-2022\/#Hodling_in_2022_Yay_or_Nay\" title=\"Hodling in 2022: Yay or Nay?\">Hodling in 2022: Yay or Nay?<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/digitalcoinprice.com\/blog\/crypto-strategies-they-stack-up-2022\/#Buying_the_Dip\" title=\"Buying the Dip\">Buying the Dip<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/digitalcoinprice.com\/blog\/crypto-strategies-they-stack-up-2022\/#Buying_the_Dip_in_2022_Yay_or_Nay\" title=\"Buying the Dip in 2022: Yay or Nay?\">Buying the Dip in 2022: Yay or Nay?<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/digitalcoinprice.com\/blog\/crypto-strategies-they-stack-up-2022\/#Day_Trading\" title=\"Day Trading\">Day Trading<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/digitalcoinprice.com\/blog\/crypto-strategies-they-stack-up-2022\/#Day_Trading_in_2022_Yay_or_Nay\" title=\"Day Trading in 2022: Yay or Nay?\">Day Trading in 2022: Yay or Nay?<\/a><\/li><\/ul><\/nav><\/div>\n<p><span style=\"font-weight: 400;\">Looking for the best way to make money from cryptocurrencies? There are plenty of ways to do it. After all, crypto\u2019s infamous volatility can create some impressive profitable opportunities, at least for those who know how to balance the market\u2019s inherent risks.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But what is the right strategy for you? And, more importantly, how well will it work considering the market conditions in 2022? Read on to find out.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Crypto_Strategies\"><\/span>Crypto Strategies<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Risk_Warning\"><\/span><strong>Risk Warning<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Before getting into the nitty-gritty of crypto profit-making strategies, we have to discuss risk. It is an inherent part of the financial markets, a danger that lurks around every corner but is not talked about enough.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Most crypto exchanges and brokers are quick to dazzle their customers with promises of huge profits, seemingly overnight. In reality, that\u2019s usually not the case. You need both skill and patience to be successful and avoid the most common pitfalls of the crypto industry. Investment and trading<\/span><i><span style=\"font-weight: 400;\"> \u201ccan be highly lucrative, but due to the volatility of the markets, that can also be extremely risky,\u201d<\/span><\/i> <a href=\"https:\/\/immediate-edge.io\/\" target=\"_blank\" rel=\"noopener\">as this website reminds us<\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That\u2019s why we advise you to plan your deals very carefully. Regardless of your choice of strategy, you always need an exit plan. Understand the risks and what you can afford to lose before you commit too much of your budget.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Now that that\u2019s out of the way, we can delve deeper into strategies you can try when playing around with crypto.<\/span><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"HODL\"><\/span><strong>HODL<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Named after a <\/span><a href=\"https:\/\/www.investopedia.com\/terms\/h\/hodl.asp\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">hilarious but rather apt misspelling<\/span><\/a><span style=\"font-weight: 400;\"> of the word \u2018hold,\u2019 HODL has emerged as one of the top strategies among crypto investors.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In fact, it comes from traditional forms of investment, such as buying stocks. The basic principle behind holding is that once you own an asset, you keep it in your portfolio for as long as possible, watching its value increase over time.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Sounds simple, doesn\u2019t it? Well, a challenge presents itself when the asset you own starts going down in price. That\u2019s usually when the more feeble-minded investors panic and decide to exit their positions at a loss.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, the trick is to know when it is even worth holding. If you\u2019ve invested in an asset that\u2019s doomed, exiting before your loss becomes too great is the right decision. Do you see now why so many people struggle with this strategy?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Simply put, it is pretty difficult to estimate the reliability of an asset, especially when talking about cryptocurrencies. They are still a relatively new asset class with lots of challenges ahead and no guarantee for mass adoption in the near future.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Even so, some examples exist to tempt investors. For instance, people who bought Bitcoin dirt cheap early on when it was worthless and bravely hodled until 2021 essentially became millionaires. But in reality, those sorts of opportunities don\u2019t present themselves every day, and not every cryptocurrency has the solid foundation and scalability to succeed in the long term.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Hodling_in_2022_Yay_or_Nay\"><\/span><strong>Hodling in 2022: Yay or Nay?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">If you have already invested in cryptocurrency, then it might be worth holding. Right now, the world is going through several crises, contributing to sky-high inflation rates. Central banks around the globe are at their wits\u2019 end as to how to stabilize their respective economies.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Naturally, this grim picture has affected the crypto market too. Though cryptocurrencies are unregulated, they react to high inflation by dropping in value. Thus, as a long-term strategy, you may succeed in holding \u2014 if you do not expect profit in the next couple of years or however long it takes for inflation to go down and risky assets like crypto coins to go up again.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In case you haven\u2019t bought cryptocurrency yet, check our section on buying the dip below.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Buying_the_Dip\"><\/span><strong>Buying the Dip<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><a href=\"https:\/\/www.forbes.com\/advisor\/investing\/should-you-buy-the-dip\/\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">This strategy<\/span><\/a><span style=\"font-weight: 400;\"> refers to one of the most basic ideas in finance and economics: buying something when it\u2019s cheap, with the mind to sell it when it becomes expensive.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The underlying assumption with this strategy is that the asset you\u2019re buying is undervalued when you get your hands on it. In other words, investors believe that said asset is inherently worth more than its present market value.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As a result, they can \u2018outwit\u2019 market participants by purchasing the asset at its lower price, knowing full well they snatched a bargain. Then, they can sit and comfortably wait as everyone else catches on and realizes how good that asset is. The market will consequently rush to buy more of it, and this demand will drive prices up.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Investors can then prepare to sell the asset at a higher price. But to maximize this strategy, they need to evaluate the correct price for the asset. Essentially, they need to know how much the asset\u2019s value can grow before it dips again.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Does it sound like, in this case, investors are holding? They are \u2014 but only for a little bit. In general, buying the dip is a bit more short-term than HODL. It still may take some time, though.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In addition, hodlers are not always looking to sell their assets. Some of them hope to keep them forever and live off of dividends. That\u2019s how buying the dip and hodling differ.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Buying_the_Dip_in_2022_Yay_or_Nay\"><\/span><strong>Buying the Dip in 2022: Yay or Nay?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">In this case, we say yay. While no one can guarantee you a positive outcome for any investment, many cryptocurrencies are at multi-year lows at the moment. Considering everything happening in the world right now, you could say some of them are undervalued.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you identify specific reasons why some tokens might kick off again \u2014 for example, due to the utility they bring or their excellent <\/span><a href=\"https:\/\/www.coindesk.com\/learn\/what-is-tokenomics-and-why-is-it-important\/\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">tokenomics<\/span><\/a><span style=\"font-weight: 400;\"> \u2014 you might have some good candidates to buy. Just remember not to invest blindly and always get to know the risks involved.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Day_Trading\"><\/span><strong>Day Trading<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Unlike HODLing and buying the dip, <\/span><a href=\"https:\/\/www.investopedia.com\/articles\/trading\/05\/011705.asp\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">day trading<\/span><\/a><span style=\"font-weight: 400;\"> is a very fast-paced strategy. It refers to transactions that traders execute within the same day, sometimes within minutes or even seconds.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The same concept of \u201cbuy low, sell high\u201d applies. But in this case, traders are looking at short-term price fluctuations. For example, a sudden market rush might boost prices for a few minutes before they settle back down. These are the types of fluctuations day traders watch out for.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As you might have guessed, this is a highly-technical and difficult strategy. Day traders swear by technical analysis tools and indicators. In addition, many of them also use trading robots to help detect price changes faster. Stop-loss and take-profit orders are a must.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Given all this, day trading is both time-consuming and not very beginner-friendly.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Day_Trading_in_2022_Yay_or_Nay\"><\/span><strong>Day Trading in 2022: Yay or Nay?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Because day trading uses short periods anyway, it is always appropriate. We say yay \u2014 as long as you have the technical skills required. With a strategy this fast, the risks are often much higher, so you need to be extra careful.<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Looking for the best way to make money from cryptocurrencies? There are plenty of ways to do it. After all, crypto\u2019s infamous volatility can create some impressive profitable opportunities, at least for those who know how to balance the market\u2019s inherent risks. But what is the right strategy for you? And, more importantly, how well [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1325,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-1324","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis"],"_links":{"self":[{"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/posts\/1324","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/comments?post=1324"}],"version-history":[{"count":5,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/posts\/1324\/revisions"}],"predecessor-version":[{"id":2615,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/posts\/1324\/revisions\/2615"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/media\/1325"}],"wp:attachment":[{"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/media?parent=1324"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/categories?post=1324"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/tags?post=1324"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}