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When thinking about the cryptocurrency market, automatically we think of the world of traders who earn by buying and selling crypto on various exchanges.
How many of us dream of being able to work as a trader?
But it's not easy, it's not just a question of knowing the sector and the reference markets, it takes clarity and rationality in making every purchase choice.
However, if it is true that we are not all inclined to become professional traders, it is equally true that everyone can invest in the world of crypto currencies managing to minimize risks and fears.
I'm talking about the Capital Accumulation Plans, the famous PACs.
It is an investment strategy already used for some time in the traditional management of personal savings.
With the PAC we periodically buy a certain financial instrument from BOTs to stocks, often used to accumulate our pension fund.
It may seem absurd to associate crypto currencies that have high volatility with such a cautious and not too risky type of investment.
Yet the boom in this sector has encouraged many investors but also financial institutions to focus on crypto currencies.
How does a crypto-based PAC work?
It works like any other form of traditional PAC. Pre-established amounts of one or more cryptocurrencies are purchased, planning the time period for example every month, so as to accumulate capital in the long term.
This investment system minimizes the risk because over time we will find to buy crypto currencies both in good times and in bad times, this will lead to a relatively constant average price.
It is clear that staggering gains will not be achieved through the PAC, however, it will significantly and constantly increase the capital invested, avoiding putting the entire investment at risk.
The purpose of the PAC is to mediate the risk that derives from the foreseeable volatility of market values, thus obtaining an average purchase price.
In traditional PACs very often we need an intermediary who will choose for us based on our budget on what to invest, in the world of decentralized markets we are the ones who can choose the crypto on which to invest and totally design our accumulation plan .
How to start?
First of all we have to think about a long-term strategy and then think about diversifying our investments, but be careful not to focus only on an emerging currencies that promise big future earnings because it is risky, so it is good to choose one or 2 coins that are already firmly established such as for example bitcoin and ethereum.
Investing in already established cryptocurrencies can give good returns if we take into account that these coins could continue to have a rather stable growth trend as they have shown in the past.
As for the coins that are not fully established on crypto exchanges, which are worth little today but which could offer unexpected growth surprises in the future.The amount to invest depends only on our economic availability, remembering to invest only the amount we are willing to lose even if it is a low risk investment.
So once the sum to invest has been decided, this must then be divided for the different crypto to be purchased, it can be divided equally or invest the highest percentage in the coin that costs the most such as bitcoin and the rest divided among the coins that have less value.After having established the frequency of the investment, which can be weekly or monthly, we just have to check the return on our investment.
We just have to accumulate and accumulate according to pre-established regular intervals and wait for the fruits of our investment which will certainly be more conspicuous thanks to the interest accrued over time and the increase in the value of the cryptocurrencies purchased.
Furthermore, lately many wallets offer a passive gain on some coins deposited in the account, the longer users keep their funds inside the wallet, the greater their income.
If one of the currencies in our PAC matches those suggested by some wallets, it could be an additional source of income, because by blocking a certain amount of money for a given period, we will get a pre-established passive income.
Like for example Atomic Wallet, or Binance exchange that offers the staking of some coins to receive passive income, CEX.IO also provides a way to earn with its dormant coins, where those who own them do not have to do anything.
In short, who said that to earn crypto you have to be a professional trader?
The time has come for revenge for avid supporters of Hodl who see over time the best way to make money with crypto.
Thanks a lot for reading my post.