3 Crypto Investment Strategies for Business Owners Navigating the Recession

In recent years, the cryptocurrency industry has offered one of the most lucrative investment opportunities anywhere. And small business owners have noticed that. Many of them now rely on cryptocurrency investments to make up a significant portion of their personal wallets. But since the beginning of this year, investment markets – including crypto – have entered bear territory. And that puts significant financial pressure on entrepreneurs who must now balance their own financial well-being with that of their business. As a result, many have started shedding crypto to avoid further losses. But just like in the stock market, it’s the people who stay on track that ultimately lead the way. And instead of divesting from crypto assets, business owners should reconfigure their portfolios to mitigate risk while taking advantage of market volatility. Here are the three crypto investment strategies entrepreneurs should consider in order to weather the recession.

Automated GRID Trading

One of the biggest challenges of investing in a volatile market is that it is impossible to stick to a strategy for long. Wild price swings can make what seemed like a solid investment choice today seem like a bad idea tomorrow. But there is a way for investors to take advantage of volatility – if they are willing to transfer their accounts to a crypto trading bot. By doing so, they can design and execute an automated GRID strategy that can deliver high returns in a volatile market. A GRID strategy allows an investor to pre-select multiple price entry and exit points and relies on automation to place the right orders when the opportunities arise. The advantage of this strategy is that it allows the investor to tailor their approach to their individual risk tolerance. And because it is a strategy that relies on market fluctuations, it can work in the investor’s favor no matter how the overall market performs. When the market performs well, it makes money by buying low and selling high. And when the market shows weakness, it does the opposite, taking advantage of short and cover orders. In other words, it is a perfect long-term solution for crypto investors.

Agriculture yield

Another excellent strategy for crypto investors to achieve stable returns from the current market decline is yield farming. It is a type of investment that is quite unique and has no real analogy in the world of traditional finance, other than instruments such as bank-issued CDs. But in the case of crypto, there is no centralized institution that generates the returns to distribute to investors. Instead, yield farming allows investors to use their crypto assets to earn high APY returns by providing them as financing for market transactions. And with the Fed’s recent rate hikes, harvesting is more attractive than ever. Now is the perfect time for investors to give it a try. The most widespread type of yield farming is called staking, in which investors agree to lock down their assets — or stakes — in a crypto account for a period of time. Those assets then become part of the operations of that currency’s blockchain, which uses those stakes to validate transactions on its network. In return, the investor earns a share of the profits generated by the blockchain itself. And further, crypto asset owners can also engage in yield farming by joining a crypto lending platform. Such platforms offer loans with investor assets and reward those investors with a significant portion of the interest generated by these loans. And even better, many features include features to stabilize interest rates for predictable investor returns. Or investors can also earn solid returns by committing their assets to liquidity pools, which provide the currency needed for the millions of trades that take place every day. In return, the investors earn a portion of the processing fees earned by the pool itself.

Invest according to the Elliott Wave theory

One of the things that made crypto such an attractive investment is that it is separate from the control of traditional financial institutions. That made it – in the minds of investors – less inclined to favor bigger investors at the expense of the small man. It was a natural fit for small business owners, who often find themselves fighting to compete with bigger competitors in the market. But while crypto markets offer a fairer playing field than some traditional investment markets, they still move at the whim of investors. That means deteriorating conditions could cause steep falls in prices as panicked investors try to avoid losses. And those moves aren’t always tied to real financial fundamentals and are more reflective of the mood of the investors of the day. However, it turns out that there is an investment strategy that is taking advantage of that trend. Called the Elliott Wave Theory, it relies on the principles of crowd psychology to predict where the crypto markets are headed. By applying the theory to their crypto portfolios, investors can take advantage of the price swings that occur as market speculation fuels volatility. In this way it is possible to create downward investment income in crypto – an option that does not exist with other investment types.

It comes down to

As any savvy business owner can tell you, one of the keys to running a successful business lies in finding ways to capitalize on competitors’ mistakes. And they would also know that some of the best times to capitalize come when economic headwinds are causing competition to make casual mistakes. Right now, the same logic applies to the crypto markets. As conditions deteriorate, savvy investors can adjust their strategies to make significant profits as their competitors flee. It is more than possible to use one or more of the above strategies. And as the old saying goes, luck favors the bold – and now is the perfect time to strike.

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This post 3 Crypto Investment Strategies for Business Owners Navigating the Recession was original published at “https://smallbiztrends.com/2022/06/crypto-investment-strategies-for-business-owners.html”

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