Can you Consider Investing in Crypto for the Long Term?

Crypto Investing

An Introduction to Crypto Investing

A form of digital currency, crypto is backed by the robust blockchain technology. As one of the newest and most lucrative asset classes, it has caught the attention of investors across the world. Leading investors have added these assets to their portfolios to derive a share of enriched returns. If you have been contemplating the purchase of these virtual assets, you must importantly understand crypto investing. Without further ado, let’s take you through.

To Begin; How to Vet a Good Crypto Project?

The crypto market is characterized by volatility. Making uninformed decisions can lead you to a financial downhill. Therefore, it is imperative to vet any crypto project of interest with utter cautiousness. 

  • First things first, carefully evaluate the whitepaper of any given asset. It lets you in on every minute detail pertaining to the asset so you can be sure of its credibility. 
  • Do your own research before determining a good crypto fit. Stay on top of ongoing financial market developments so that you are aware of the real-time undertakings. 
  • You should essentially be well convinced before making a crypto purchase decision. Take enough time to learn and adapt to the underlying mechanics. 

 Remember, beneath all the complex jargon, crypto assets are simply products that serve a given purpose. An asset must have a reason to exist. If not, you must be wary about why it is on the market. 

Long Term Investment in Crypto

Investors can consider investing in crypto short term or long term. In long term, the investors holds the crypto asset for atleast more than 1 year, which is also known as HODL ‘Hold on for Dear Life’ in the crypto world. As a fast-growing technological asset, there are innumerable benefits of long-term crypto investment. To begin, 

  • Aids Withstand Volatility – The crypto market sways with margins dipping and rising incessantly. Investing long-term is a good way to manage the volatility and derive greater potential profits over time.
  • Enjoy Advanced Functionality – The crypto market is constantly evolving for the better. It is growing to have more real-world implications, and this is bound to make it highly valuable. Staying put longer brings better opportunities to capitalize over time. 
  • Help Beat Inflation – Conventional currencies are greatly affected by inflation. Crypto is scarce, widely acceptable, and durable, thus these factors may help it beat the rising inflation. 

Additional Read: Long Term vs Short Term Crypto Investing

How can Crypto SIPs help? 

Initiated by CoinDCX, the Crypto Investment Plan (CIP) also known as Crypto SIPs is an effective way to ensure a disciplined form of investment in the Crypto space. It comprises investing a fixed fund towards your crypto account, week on week. This function helps you stay consistent in your investment journey while being disciplined. Think of it as the Mutual Funds – Systematic Investment Plan for crypto assets. Over time, investing through the CIP increases potential profit building. If you are a newcomer and don’t know where to begin, the Crypto Investment Plan can effectively lead your way. 

To start investing in Crypto SIPs, the first step is to find a crypto investment app that facilitates the demand. Crypto tokens available as of May 2022 are, Bitcoin, Cardano, Ethereum, Polkadot, Loopring, Solana, and Ripple. To srat with CIP, here are the easy 6 step process:

Step 1: Open your CoinDCX App & Select “Buy with CIP” on your home screen

Step 2:  Select the coin you want to start your CIP for

Step 3: Click on CIP Amount

Step 4: Select the amount you want to invest on a weekly basis

Step 5: Click on “Start CIP”

Step 6: That’s it! Your Crypto Investment Plan(CIP) will be active!

Read more: Crypto Investment Plan

Choosing the Right Cryptos for Long Term Investment

The crypto market has emerged from the backwaters of mainstream finance to quickly grow in prominence. However, it still requires careful evaluation. Here are some aspects to note before investing: 

Price Swings Are Common

The crypto market is dominated by price swings. Dips and highs are common from time to time. This is due to the fact that crypto-assets remain largely unregulated to the day. There are no institutions that dictate or control the value. The volatility is unlikely to go away. But again, volatility and non-central control is what stand at the cusp of the crypto world. 

Great Effects of Market Trends

The ongoing market trends have a heavy influence on the performance of crypto assets. They greatly sway based on economic performance and public conspiracy. To be smart and well-informed about the best cyrtos to invest in, you must keep a close watch on the news or predictions that swirl around a given crypto asset. 

Pay an Eye to Asset Security

As you must already know, cryptos are unregulated and not secured by a central authority. This means that you must be extremely cautious when investing and holding on to your assets. A reliable platform like CoinDCX can help you trade and maintain your assets with ease. Additionally, you must always take measures to keep your information and passwords confidential.  

Making Predictions is Tough

The crypto space is still growing, and the fluctuations have been difficult to track. The value of this industry is believed to only thrive over time. However, it also continues to be a closed bubble that is driven by impossible implications. It is quite a task to predict the play of the industry unless you constantly stay on guard. 

Current Market Scenario

At present, the crypto market has been significantly hit. Its value has heavily plummeted to more than half of the recorded value back in January 2022. This sudden drop can be regarded to the ongoing financial market fluctuations. The Indian rupee is hard hit in comparison to the US Dollar, the Sri Lankan economy is at great risk and there is political conflict in Ukraine-Russia. All these factors are heavily influencing crypto stability as investors are undertaking asset sell-offs. However, experts do believe that the crypto class will overcome this phase to shine bright over time. 

Bottom line

Crypto assets have incredibly grown to become mainstream financial discourse. Now proves to be a good time to invest and derive your share of potential returns. However, you must also know that it is a complex investment landscape. Vetting the asset carefully and investing through well-curated platforms such as CIP by CoinDCX will go a long way in driving the best of this attractive asset class. 

Follow the CoinDCX blog to stay initiated on all the trending crypto news. 

Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. In case you have any queries, write to [email protected].

The above information represent the independent views of Primestack Pte. Ltd, Neblio Technologies Pvt. Ltd, and/or their affiliate entities and are for informational & educational purposes only. The content, information or data provided above is not an offer, or solicitation of an offer, to invest in, or to buy or sell any interest or shares, virtual digital assets/ crypto products or securities, or to participate in any investment or trading strategy. Any statement or communication made above shall not be treated as a legal, financial, investment or tax advice by the reader. The calculations, data, risk-return formulations, performance or market capitalization indicators captured above are based on the independent data sourcing including collation of public information and/or analysis performed by analysts, advisors or employees of Primestack Pte. Ltd/ Neblio Technologies Pvt. Ltd and/or their affiliate companies and/or any third party. Past performance is not indicative of any future results. The reader(s) are hereby advised to consult their financial/ legal/ tax advisor(s) before making any investment.

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