Blog Crypto How to Make a Crypto Investing Strategy with MCT Token

How to Make a Crypto Investing Strategy with MCT Token

date April 22, 2022 time 5 min read 567 views

The world of trading cryptocurrencies can be brutal, so it’s essential to have a solid crypto investing strategy in place—and to follow it no matter what. We’ll go through a few of the most promising options, before introducing a new way to invest in crypto using the MCT token. Whether you’re new to crypto or a seasoned veteran, you’ll be sure to find something you can apply.

You might assume that since cryptocurrency is a volatile market, creating a solid crypto investment strategy is a fool’s game. That’s not quite true. While the volatility of crypto is a given and you’ll have to accept a certain amount of risk for the chance of a return, it’s still possible to formulate a coherent strategy to boost your chances of success.

Take care to choose a crypto investing strategy based on your skills and experience.
Take care to choose a crypto investing strategy based on your skills and experience. (Source: Unsplash)

So, where should you start? There are several strategies to choose between, with varying levels of complexity and accessibility. In this post, we’ll run through the top four—as well as how you can put the MCT token at the heart of your investing.

Top four crypto investment strategies 

There’s an almost infinite number of ways to invest in cryptocurrencies, but that doesn’t mean they’re all good ideas. That’s why we’re honing in on four of the most effective instead. Let’s go through them one by one, from the most beginner-friendly to the most advanced. 

HODLing

When most people think of crypto investing, they imagine crazy methods involving the rapid buying and selling of niche cryptocurrencies. But really, crypto investing can be as simple as a buy and hold strategy—lovingly known as “HODL-ing” in the crypto community. 

To a newbie, “HODL” might seem like a typo, but it’s a standard, established method in the crypto world.

Basically, all HODL-ing involves is buying a crypto asset and holding it over the long term (instead of aiming to sell it for a profit over the short term). In other words, you’re an investor vs a trader.

The volatile crypto market is full of spikes and drops, but coins like ETH generally increase over time.
The volatile crypto market is full of spikes and drops, but coins like ETH generally increase over time. (Source: CoinMarketCap)

A phrase often applied to the stock market is “time in the market over timing the market.” The idea is that, if you hold an asset long enough, you’ll ride out any price drops along the way and benefit from the growth over time. While this doesn’t always work, the crypto market as a whole does trend upward. For instance, if you’d bought Ethereum after the first spike in the chart below in 2018, you’d be pretty happy if you’d HODL-ed it until the present day.

Staking

Another fairly accessible way to invest your crypto is by staking it. This means you’ll receive rewards in return for locking your cryptocurrency away—it’s not a million miles away from conventional saving methods like the certificate of deposit. 

For instance, you might make 10% APY by committing to leaving your SOL on a blockchain platform for six months. This won’t just mean you’ll earn money, but you’ll also be helping your favorite blockchain projects to succeed.

Why? Because the platform uses your crypto to grow, often as part of a proof-of-stake mechanism—just like a bank might re-invest your funds. Your crypto effectively becomes collateral in a proof-of-stake mechanism to keep a blockchain going and verify transactions. Solana, Algorand, Cardano, and Polkadot are all prime examples of blockchain protocols that use this mechanism.

Although staking involves some level of risk (you may have to commit to parting with your crypto for a long period, meaning it could lose value and you won’t be able to sell it along the way), it’s more profitable if you plan on HODL-ing anyway. Why say no to the chance of earning passive income?

Yield farming

If you’re willing to take your crypto investing strategy to the next level, you might want to consider yield farming. This is a more active route, because it means you’ll be “shopping around” to find the best yield—but the whole process is automated.

Let’s rewind. In the world of decentralized finance (DeFi), there have always been ways to lend out your crypto as liquidity and earn a small amount of interest as a profit, but these have grown significantly over time to the point where it’s hard for an individual to figure out where they’ll get the greatest returns. Enter yield farming.

These new opportunities mean you can shift your crypto automatically around to ensure it’s always deposited in the place it will obtain the greatest rewards. It’s kind of like having an automated asset manager to control your investing strategy for you. But again, it carries some risk.

Value investing

Value investing is a favorite of none other than Warren Buffet, so it’s worth listening to what it’s all about, if nothing else. This is a type of investing where you invest primarily based on the inherent value you think something has—and how this value compares to the asset’s current price.

For example, you might think an upcoming new crypto has strong potential but is undervalued, leading you to think you could make a lot of money from investing in it ahead of the crowd. Simple to explain, difficult to pull off effectively. 

We’ve placed this as the most advanced strategy since you’ll need an advanced knowledge of the different cryptocurrencies and the technologies behind them to be able to figure out what they’re worth and whether you should invest. 

Where the MCT token fits in

Earlier, we mentioned the MCT token and touched on how it can make crypto investing easier. Let’s examine that claim in a little more detail.

MCT token investing could be the future of cryptocurrency investment.
MCT token investing could be the future of cryptocurrency investment. (Source: MyConstant)

The MCT token is a cryptocurrency with a range of features and capabilities that mean you can take advantage of the bulk of what the blockchain has to offer all with one coin.

We know how intimidating it can be to get involved in the crypto world for the first time—to even buy a cryptocurrency, you have to figure out how to use crypto exchanges and store your assets in a wallet. Never mind figuring out what you should actually buy.

So, MCT token investing is your gateway to unlocking the profits the blockchain world has to offer. We’re trying to bridge the gaps that exist by offering one token that lets you access a variety of benefits. Owning the token gives you the option to either stake your tokens and to access higher rates for investing on MyConstant (or lower rates for borrowing).

You can also switch between more than 70 cryptocurrencies within minutes, making it easier to maximize the opportunities you can access.

Join the new era with MyConstant

Whatever crypto investing strategy you opt for, it’s always smart to stay on the look-out for exciting new opportunities. 

So, you might be interested to learn that MyConstant has launched its own NFT offering. We’re also giving out NFTs and guiding how you can score NFTs as rewards when you reach certain milestones.

We also have a range of cryptocurrency and USD products that help you take your crypto further and earn interest on crypto up to 14% APY,  or you can deposit your crypto in our multi-cryptocurrency wallet (and even earn interest on stablecoins).

Other benefits of our platform include:

  • 24/7 customer service
  • Rates as low as 6%.
  • Early repayments for lower rates.
  • Instant matching.
  • Store and borrow against over 70+ different cryptocurrencies.

Sound good? Sign up today and receive a $4000 bonus now.

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George Schooling

George Schooling

Buy MCT token with ease and enjoy the staking rate of up to 12% APR

Tags: mct token mct token investing

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