When there’s volatility in the market like we’re seeing right now, some investors sit on the fence. But instead of playing a waiting game with your investing, you could use this time to grow your cash.
If you’re not ready to invest right now, then NOW is the time to get ready to invest for when fantastic investments become available at bargain prices. And for many investors that means paying down debt and saving for that investment deposit.
So, is it time to look at another strategy to build a cash reserve? Here’s a look at how Cryptocurrency is giving some investors a ride in the fast lane on the road to their next investment.
Cryptocurrencies like Bitcoin and Ethereum have been making headlines in recent years thanks to their dramatic price fluctuations. Although they’re a relatively new investment asset class, cryptocurrencies have shown significant growth potential and have become a popular investment option for many. Here are some ways in which some investors can use cryptocurrencies to help grow their cash reserve:
1. Diversification is the name of the game.
Investing in cryptocurrencies can help investors diversify their investment portfolio, spreading the risk across different asset classes and reducing the impact of a single investment.
2. Potential for High Returns.
Cryptocurrencies have shown significant growth potential over the past few years, with some experiencing exponential price increases.
Although past performance is not indicative of future returns, the potential for high returns is a compelling reason for property investors to consider investing in crypto. Bitcoin for example has been the best performing asset of 2023 and has vastly outpaced the current 5.5% of the S&P’s performance.
3. You can start small.
Unlike property investment, which typically requires a significant amount of capital, investing in cryptocurrencies can be done with as little as a few hundred dollars. This makes it a more accessible investment option for those looking to grow their cash reserve without taking large risks.
4. Open 24/7
Unlike the stock market, the cryptocurrency market is open 24/7. This means you don’t have to wake up early, or stay up late, depending on where you are located, to trade the cryptocurrency market. You can buy and sell cryptocurrencies at anytime that works for you.
5. Automation
Another tool you can use in your risk avoidance arsenal is a trading bot that uses algorithms to automatically execute trades in the cryptocurrency market. These bots can help automate the investment process and maximise your gains.
In other words, bots are simply automated tools that buy and sell these assets for a profit on your behalf.
And best of all? They tend to perform better than some of the best traders in the world for the following reasons:
- They react faster
- They never sleep
- They don’t get tired
- They don’t make human errors
- They process more information than humans can
- They are not emotional (they don’t feel greed or fear which affect traders’ performance)
- They don’t miss opportunities
- They make daily, consistent gains of up to 1%
Plus, bots can analyse market trends, track price movements, and execute trades based on predefined rules and parameters. This helps eliminate emotional biases and human errors that can negatively impact investment decisions. And since they place trades 24/7, it’s especially important in the fast-paced cryptocurrency market.
SCROLL DOWN to find out how to be a risk averse cryptocurrency investor and use bots to automate your gains!
Crypto investing isn't without its risks, but it does allow investors to diversify and invest small amounts to get started.
What about the risks?
Yes, investing in cryptocurrencies can be daunting, especially for new investors who may not have a deep understanding of the technology or the market dynamics. Plus, with all the negative headlines in the media about the cryptocurrency market, it can sound like a scary asset class. So you won’t be surprised when I say that’s why having a mentor or guide can be a game-changer. They can teach you the ins and outs of blockchain technology, give you the lowdown on market trends and investment strategies. Plus, they’ll have your back and help you dodge the common pitfalls that could ruin your gains.
An experienced mentor can help new investors understand the importance of diversification, risk tolerance, and long-term investment goals.
And as the cryptocurrency market is constantly evolving, and new investment opportunities emerge regularly, a mentor or guide can provide new investors with access to a broader range of investment opportunities.
Trading bots use computer algorithms to help mitigate the risk of crypto trading and put your gains on autopilot.