Ask most successful investors, and they will tell you that their success was not an accident. Often substantial returns are the result of years of market experience, careful planning, and sound advice. Although investment strategies differ significantly, and people have vastly different opinions about the most successful investment strategies, most would agree that it doesn’t happen by accident. However, you could be forgiven for thinking that truism doesn’t apply to crypto investment.
In 2017, cryptocurrency markets exploded. In addition to the most popular cryptocurrency, Bitcoin, there were 235 new currencies introduced in 2017, according to data compiled by CoinSchedule. In total, these hundreds of digital currencies accelerated from a market cap of less than $20 billion to more than $800 billion at its peak.
The rapid rise of digital currencies made crypto investment look easy. After all, the strategy was simple enough. Buy a cryptocurrency, watch it appreciate in value, and sell it for a considerable profit. As one investor recently told the Wall Street Journal, “You’d wake up to $5,000 to $10,000 gains on consecutive mornings…It was like a money train that wouldn’t end.”
However, that was in 2017. Now that we are a month into 2018, it’s evident that crypto investment markets are going to be more complicated to navigate.
Since the beginning of the year, the crypto market cap has been cut in half. At the time of writing, it’s just under $400 billion, down from an all-time high of $825 billion. Of course, crypto markets continue to be stacked with compelling investment opportunities, but the rudimentary strategy of purchasing virtually any cryptocurrency and watching it appreciate hard and fast may be over.
More nuanced skills and strategies will be required to achieve the ambitious returns that defined 2017.
In traditional investment markets, there are whole industries of experts devoted to helping people invest wisely. Cryptocurrency markets are different. In total, cryptocurrencies have been around for less than ten years, and many of the digital currencies that comprise the most compelling components of the crypto markets are just a few years old. There are far fewer resources available for cryptocurrency investors to rely on.
Instead, investors often end up relying on hype and advertising to support their investment decisions. For so many reasons, this is a really bad idea.
Therefore, many cryptocurrency investors have turned their attention to copy trading. This strategy is as simple but more profound than its naming indicates. Copy trading is an organized system in which investors strategically and systematically copy the traders of a more experienced or more accomplished investor. The copied trader is compensated for his knowledge, while the copied trader gains the ability to use an intentional, strategic investment strategy as strive to invest in crypto markets successfully.
Signals bring together experienced investors and amateur traders on a powerful but user-friendly platform. Using machine learning techniques, the Signals platform includes surprisingly capable education and research tools that allow investors to make the best decisions based on the most up-to-date information. Moreover, Signals is a uniquely visual platform with a mobile-first mentality.
Perhaps most importantly, Signals allows users to buy or sell their algorithmic trading strategies. Unlike other platforms that sell proprietary algorithms, Signals provides investors with the necessary tools to create their own strategies that they can sell on their built-in marketplace. In this way, Signals is a reciprocal platform where investors can both buy and sell successful strategies.
Its counterpart, Enigma, offers many of the same features, but it is intended for developers and professionals, rather than average investors. Enigma uses the Python programming language, and users will need to have some coding experience to navigate the platform successfully.
Although crypto markets are behaving differently in 2018, there is still an abundance of opportunities for wise investors to pursue. In fact, 2017’s raucous investment market likely brought the attention and investment capital necessary to further proliferate cryptocurrencies into the mainstream financial system. Of course, those opportunities aren’t always obvious, and the help of expert investors can make all the difference.