So you’ve done it. You decided to take the plunge and buy some crypto assets on an exchange platform. Maybe you’ve even taken the extra step to secure your funds with a cold wallet. Perhaps you’ve even come up with a trading strategy or two. That’s all amazing to hear.
If you’re still looking to add a trick or two to your book, we’ve got just the guide for you. Today, we’ll focus on how you can keep your cryptocurrency growing while also unlocking more liquidity for your other needs. Read on and find out how!
Step #1: Buy the Dip
If you’ve spent some time on Crypto Twitter, or just the decentralized web in general, you might have noticed users sometimes going “BTFD.” While we would probably not word it as strongly, the hallowed phrase essentially means to buy the dip. In other words, buy a certain crypto asset when its price is low instead of rushing in to purchase it when you see its price rising astronomically.
It’s easy to get swept up in the euphoria of watching those prices soar. The panic that you might not be making as much money as you could starts to seep in, and you end up purchasing an asset for way more than you should.
Keep calm, and observe when the markets are in a lull. Most economic markets tend to follow a cycle, so in most cases, you can be reassured that prices will fall back down to a certain level after a while. Read up on some technical indicators to see where this floor should be placed, and buy when you see the asset of your choice approaching those levels.
Step #2: HODL for the Long Term
Once you’ve done the above, all that’s left to do is wait it out for a bit. We don’t mean to wait endlessly, of course. Some things that you should do before you HODL – hold on to your assets for the long term – include setting a price target and making sure that the assets you’ve chosen are really worth keeping in your wallet.
It’s essential to set a price target, so you know when to take profits. The gains you make do not mean very much if they simply remain on paper or in the ledger. While some people choose to regularly take a fixed amount of profits, what you can do is also cash out the moment your asset hits your desired price target. Contrary to what some people may say, there is a certain point where the value of an asset will stop rising. For all we know, things may even go to zero – uncertainty is a part of life, and it is vital to manage the risks that come with it.
Step #3: Get a Crypto backed loan
As you wait for your assets to appreciate, you’ll find yourself being faced with one more problem. Having all that crypto locked up also means that you’ll have very little liquidity and that you won’t be able to do much with it until it hits your target price. Crypto-backed lending platforms, such as Nebeus, have changed this, and you can now get money for your needs while keeping your crypto assets.
Crypto-backed lending means that you will be offering up your cryptocurrencies as collateral in exchange for a FIAT loan. That way, you’ll be able to do more with your assets as you wait for their value to appreciate. Nebeus is an excellent example of a platform, and whether you are a beginner or a pro, their app and desktop platform are super easy to navigate and can help you make the most of your crypto assets.
Whichever it is, it is undeniable that this helps you unlock an additional layer of liquidity – something that you don’t typically get when you simply buy and HODL.
As you keep going on your crypto journey, you’ll find that there are plenty more ways to make gains and unlock liquidity beyond just simply buying and holding your assets. Don’t be afraid to get creative and try out the entire selection of protocols and platforms out there. After all, while the financial gains are valuable, the knowledge you’ll gain along the way is the true long-term investment.