This strategy involves investing a fixed amount of money into cryptocurrencies on a regular basis, regardless of the current market price. This helps to reduce risk by spreading out investments over time and allows investors to take advantage of lower prices when they occur.
2. Value Investing: With this approach, investors look for undervalued cryptocurrencies that have potential for long-term growth and hold them until their value increases significantly.
3. Momentum Investing: Investors who use this strategy focus on buying digital assets with strong upward momentum in order to capitalize on short-term gains as quickly as possible before exiting the position once it has reached its peak or begun declining again.
4. Hedging: By diversifying across multiple currencies and using derivatives such as futures contracts, options, or swaps, investors can hedge against losses due to volatility in the cryptocurrency markets while still potentially profiting from positive movements in certain coins or tokens.