February 12, 2025 How to Invest Based on YOUR Investment Style Dear Subscriber, There are two types of crypto investors. The first are short-term investors. These are the profit-seekers — the ones who want to grab quick, substantial gains from the fast-paced crypto market. The second are long-term investors. Before you jump into the crypto market with both feet, you should sort out which category you fit into. By comparing and contrasting the mindsets and goals of these two types of crypto investors, you can better align your own strategy and goals. So let’s go through both approaches to see which one best suits you. Short-Term Gains: The Art of Degen Trading Degens — shortened from “degenerates” — are crypto traders known for their risk tolerance and highly speculative trades. Their trades are typically based on patterns or momentum, rather than fundamentals. And they require a level of technical expertise and a strong stomach for risk. Now, you don’t need to be a degen to be a short-term investor. But they do set the bar for how profitable a short-term strategy can be. Especially in the crypto market. Consider memecoins, a popular sector for degens to trade thanks to their extreme volatility, low market caps and potential for massive short-term gains. New memecoin projects can launch for just a fraction of a single cent. And the most successful ones can grow to trade for several dollars. For example, the viral Solana (SOL, “B”)-based memecoin, Fartcoin (FART, Not Yet Rated), launched at $0.00006. (Yes, someone really made an asset called Fartcoin. Now you understand where the "degenerate" title comes from.) At the time of writing, FART trades near 54 cents. That’s an 899,900% increase! Price action of FART since launch. Source: Coingecko. Click here to see full-sized image. Now, let me be clear: This is an extreme example. The likelihood that a freshly minted coin will blow up like this is slim. In fact, launches tend to be followed by a lot of volatility. That’s why, if you’re interested in degen-like trading, there are two key steps you’ll likely want to consider: Cast a wide net. One of the best strategies for maximizing return probability with volatile not-yet-established coins like these is to put a little capital in a lot of projects. But all you need is to hit the mark once with a project like this to see insane profits. The hope is that, should one investment do well, it’ll offset any loss you experience from the ones that went belly up. Be ready to act quick. Serious degen traders are like TradFi’s day traders. Due to the small size of the projects they invest in, they have to be ready to trade at a moment’s notice as to tiny — and large — changes in the market send prices swinging. Long-Term Vision: True-Blue Blockchain Believers Because crypto has the most exciting and profitable speculative market in the world today, big overnight wins can often overshadow the slow and steady returns of true blockchain believers. Having “diamond hands” isn’t just a meme, it’s an actual strategy. Imagine that just five years ago you had a conversation with a friend who got you interested in Bitcoin (BTC, “A”). You went home, read a few articles, and decided to invest. Because you stuck to a single crypto investment, you went big and bought an entire BTC in January 2020. That would have cost you a whopping $7,410.45. But you didn’t sell when, just a few months later, BTC blasted to $20,000 … despite the impressive 169% gain. That’s because you weren't looking for a quick buck. You really believed in the future of blockchain technology and Bitcoin's role in it. So even as several juicy opportunities to sell arose, you stayed the course. When the price dipped, you didn't panic. Now here we are: Five years later, and your one BTC token is worth $97,380.16, a 1,214.09% increase. Price action of BTC over the past 5 years. Source: Coingecko. Click here to see full-sized image. That’s the power of HODLing — that is, “holding on for dear life” in cryptospeak. Crypto is still an emerging technology. Despite the volatility, the trends of Bitcoin and other major altcoins have been rising for years. Buying and holding was a good idea five years ago. And it’s still a solid strategy today. But that doesn’t mean it’s easy. If it were, everyone would be Bitcoin-rich. Not only do you need the knowledge and insight to analyze whether a project has long-term potential. You also need the discipline to avoid market panic that could convince you to sell way too soon. You also need to be comfortable with a time horizon in which you may not see a return for years. A Strategy for Those Who Straddle the Line What if you want a strategy that can make use of both investment approaches? Well, fortunately, there is one. Using Juan Villaverde’s Crypto Timing Model to track the ups and downs in the market … And Dr. Bruce Ng’s small-cap crypto expertise … Their New Crypto Wonders Members have been able to target gains from newly launched, up-and-coming projects … without the need to frantically monitor their portfolio or wait years for notable gains. In 2024 alone, they locked in gains of 100% … 143% … and even 200% on coins they bought in this bull market! And this coming Tuesday, Feb. 18, at 2 p.m. Eastern, Juan will go live to share the secret strategy he uses to maximize potential gains. It’s free to attend. Just be sure you save your seat now. Then, look to your inbox for all the details. Best, Beth Canova Crypto Managing Editor |