Crypto strategies to benefit from the volatility of the markets

Marcus de Maria, CEO of Investment Mastery, crypto expert, renowned stocks and shares trader recently shared his cryptocurrency strategies via a masterclass hosted by GeniusU called ‘How to build a fortune through Cryptocurrencies, in 20 minutes or less’. Marcus’ key strategies are below: 

1. Decentralised finance and how it works

The traditional banking system is set up as a centralised system that allows banks and Governments to control the rules through monetary policy, credit and access to currency. Cryptocurrencies are a secure digital alternative to traditional fiat money, such as the pound coin in your pocket. They are decentralised, thus taking the influence of Governments and Banks out of the equation.

Cryptocurrencies are powered by Blockchain, in the sense that the building blocks are structured by the security that the Blockchain system provides.  Blockchain is the name given to a secure system of recording digital information in a way that makes it difficult or impossible to override hack, or cheat.  A blockchain transaction is essentially a digital ledger of information or record that is duplicated and distributed across the entire network of computer systems on the blockchain. Blockchain as a tool can be used to secure a cryptocurrency or secure a legal document such as a lease or export finance agreement.

The emergence of cryptocurrencies, which are here to stay, and in fact represent the future of finance in one form or another present a huge opportunity for investors and speculators alike, but only if you have the knowledge and strategies for success. There are two systems which cryptocurrency can be purchased via, decentralised and centralised. Centralised is the more standard with stricter regulations and a quick execution on orders, however without good security measures can be more prone to being targeted by hackers. Decentralised is more secure and has no chance of being hacked but orders take longer to execute and does not offer so many features.

2. Strategies for success

Before you get started, set up a demo account where you can practice the strategies outlined below without risking any money. Test the strategies for a month or two to make sure you have perfected them and are happy with the results.

Choose a particular day or two each month to invest in crypto and on this day look at the previous month’s value. If the value has dropped significantly then purchase a predefined amount – say £100. On the following month look at the value against the previous month and if dropped again purchase +25% more than last time.  Once the coin starts to rise you are then in profit.

On the following month if the value has risen, do not purchase any more of these coins. Try another crypto currency and use the same strategies to invest. This will give you an overall portfolio with a low average entry price on everything you purchase, which will maximise profits over time.

3. Use an indicator

An indicator is a mathematical strategy that gives you an entry level point based on the price and the volume of sales. The indicator will show when a crypto is oversold and offer you a good entry point. In this strategy every time the value peaks and then dips back below the indicator you make a second and then third entry point. When you have reached a targeted profit, for example 5%, you can then use a stop-loss to make sure you don’t lose it again. The more times this is done the better chance of the value rising again and the returns can be significant.

4. Use dividends or staking

Currently banks offer little to no return on cash, but cryptos can be a much better option to invest money to offset inflation. With inflation already having risen by around 5% this year, any cash in the bank will actually decrease year-on-year when looking at what it can purchase and comparing it to a previous year. Cardano, Ethereum or Polkadot are offering returns of  5%, 6%, or even more just for holding on to the coin and not selling them.

Cryptos can also give you a passive income via staking or dividend payments where if the coin does well, you will profit in addition to receiving an income.  Staking is essentially lending the crypto currency that you own for a fixed period of time and can see returns ranging from 3% monthly to 40% on some coins.  You can do this in one of two ways, either through a third party who will do it for you, for a fee, or you can learn to do it yourself.

5. Get in early

Some of the most lucrative investments are made when new coins are purchased just as a crypto is launching and with larger investments, big discounts can also be offered. In this scenario returns of 20%, 50%, or even 200%+ can be accomplished. Initial Coin Offerings (ICO) or Pre ICO or Pre Pre ICO are usually only open to investment by corporations or conglomerates, as £500,000+ is needed to be considered as an investor. At Investment Mastery, we research the best launches to get involved with and offer our members a group investment offer, raising the money collectively for a more affordable way to access these launch discounts.

Find out more about Marcus’ strategies at the Global Impact Investor Summit hosted by GeniusU on the 5^th and 6^th May 2022. At the Global Impact Investor Summit Roger Hamilton and other world-class guest speakers including Marcus de Maria, Mark Robinson and Simon Zutshi will be covering hot topics such as Fiat Currencies, Stocks and Shares, Cryptocurrencies and Commodities, Property Markets and so much more!

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