For more than a year now, crypto has been one of the most popular investment topics around the world. We’ve seen Bitcoin hit all-time highs twice during 2024, and while 2024 has started out in a bit of a dip, investors of all kinds are still hopeful.
Bitcoin and other conventional cryptocurrencies have been far from the only topic of discussion. NFTs took the crypto community by storm with their innovative application of blockchain technology, and many other DeFi applications are providing unique opportunities you can’t find anywhere else.
With so many options out there, fledgling crypto investors might not know where to start. It’s been a long time since the only way to invest in crypto was to buy and hold Bitcoin. Today, investment opportunities have sprung up on either side of Bitcoin, providing choices that are either more conventional or even more unorthodox.
Canadians that are looking to invest in cryptocurrency have to take into consideration that Canada is cracking down on crypto regulations. Using a Canadian regulated crypto exchange will provide more security in the long run. For more details, check out netcoins.ca in Canada.
Whether you’re looking to be a part of a daring DeFi endeavor or want a bit of crypto exposure in more conventional investment products, there are plenty of opportunities to do so with your crypto investing strategy in 2024.
Sticking With Conventional Cryptocurrencies
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Of course, you can still choose to go with the old-fashioned way of investing in cryptocurrencies. For over a decade now, people have been buying and selling Bitcoin to make a profit. Like any stock or foreign exchange investment, you try to buy low and sell high. This can be challenging with the volatility of cryptocurrencies, but there’s no disputing that the general trend has been up.
The real question is which cryptocurrency you should invest in. During 2024 there was a flurry of so-called “memecoins” that saw staggering increases based on just about nothing. DOGE, SHIB, and so on rocketed up and made some people a lot of money. In the months that followed, thousands of imitators popped up and saw countless people lose money trying to catch the next “rocket to the moon.” There are also countless get-rich-quick schemes like Quantum AI which boast amazing returns. However, a quick check for an honest review about Quantum AI reveals it is nothing more than a scam.
This kind of investing is now referred to as the casino by crypto enthusiasts because it’s hardly investing at all. Instead, serious investors can focus on established cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and most recently, Binance Coin (BNB). There are plenty of other options out there, but these three are in the spotlight, at least for now.
Ethereum, in particular, is one potential investment that could see huge returns in 2024. The transition to Ethereum 2.0 is expected to take place by mid-Q2 2024. This massive project will see Ethereum switch from proof-of-work, like Bitcoin, to proof-of-stake, like most of the latest blockchains.
There are huge hopes for the benefits of this transition, most notably dealing with Ethereum’s exorbitant transaction gas fees. Transactions routinely incur gas fees of hundreds of dollars worth of ETH, making many applications impossible. This new update will bring scalability to what is already the second-largest cryptocurrency out there.
Cryptocurrencies in Mainstream Investing
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While there are many options that streamline buying, holding, and selling cryptocurrencies directly, it still isn’t for everyone. Those who are interested in more traditional investment products can still get exposure to cryptocurrencies and other blockchain technologies.
Many cryptocurrency-related companies are publicly listed. You can buy stocks in Coinbase, a major cryptocurrency exchange, along with many other cryptocurrency endeavors, large and small. You can also buy stocks in cryptocurrency mining operations, DeFi startups, and the latest fintech ventures.
If picking stocks isn’t for you, then crypto ETFs might be. These exchange-traded funds try to capture the growth of the crypto industry by maintaining a mix of stocks from across the industry. This can include strictly crypto ventures but also larger companies that are dabbling in blockchain technologies. Most crypto ETFs will hold stock in companies like Microsoft, Square, and Intel. This gives investors some exposure to crypto without excessive risk, which could be the strategy to take in 2024.
Beware of Volatility
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As you noticed in recent weeks, cryptocurrencies are losing their value. It is a trend now, but the experts predict that it’s still wise to invest in digital currencies. But, they also recommend that you watch out for their volatility. This is a well-known trait of these currencies but in recent times they’ve been going down instead of growing in value as they did last year. For example, if you put forward a thousand dollars in BTC this year, you’d won only eight hundred at this moment. This is not good news, but it was expected. The following year is going to be more volatile than it’s usually the case with crypto. New investors need to have this in mind, or they’re in for an unpleasant surprise. The price of BTC and similar currencies is going to be all over the place in the coming weeks and months.
The move you should make if you’re a young investor is to stick to the well-known digital currencies such as Bitcoin and Ethereum. Avoid new coins that still haven’t found their ground. While it’s good to gamble with crypto such as Dogecoin and win, the matter of the fact is that many new currencies will die out due to the ongoing situation regarding cryptocurrencies in general. You’ll fall into despair if your first venture into crypto ends up this way, so be careful and invest safely in well-known assets in this domain. The advice we’d give to any newcomer in the world of digital currencies is that you do not invest more than you’re prepared to lose. Yes, you could be the next Satoshi Nakamoto with the right moves, but you could also lose everything.
Diversify Portfolio
Source: entrepreneur.com
Yes, crypto is the new oil, but a bit more unstable. At the moment, digital currencies do not finance governments or have the social influence of oil, gold, and similar assets. No, they’re valuable, but to many people out there is still an unknown commodity. This is why it is wise to try your investment luck with crypto, but not to be focused solely on it. It is recommended that you do not commit more than 10% of your portfolio to these assets. Cryptocurrencies can make you a rich man in the short term, but they could also strip you to the bones. Considering the current situation, and the drop in the price of digital currencies you’d be wise to remain unmoved and to learn about the market some more before pulling an ace from your sleeve. If you’re new to these dealings, first introduce yourself to the deck, and then look at the cards. If investing is going to be your occupation, dealing with cryptocurrencies needs to be done with care. In this domain, a diversified portfolio will keep you afloat regardless of how volatile the digital currencies market is. And right now it’s highly volatile, and it’s going to remain that way in the coming months. That much is known.
Choosing Your Crypto Investment Strategy for 2024
Cryptocurrency investments are a complex financial space with many risks and significant potential rewards. When making any crypto investment, you should be sure that you really understand the risks involved. Keep in mind that there are many deceptive crypto opportunities and scams online, so always thoroughly vet any potential investment. With so many options, crypto could be a viable part of any investment strategy for 2024.
