How to invest for the most profit if you only have $3000 in 2018

As a former trader and someone who worked for a company that specializes in both trading and index diversification strategies, we think this question is a bit different for me than it likely would be for the average CoinBeat reader. However, I would personally split that $3000 and use it for both longer-term holdings, through an index strategy, and active trading, to exponentially build my capital. Here is why:

An index strategy is basically buying into a basket of coins where you are well diversified and less likely to suffer from heavy losses if one potential coin was to fail or tank heavily. Using an index strategy would rebalance my portfolio according to the current market, ensuring I wasn’t overly exposed to any single coin. I would likely choose the more “bluechip” cryptocurrencies like Bitcoin, Litecoin, Ethereum etc. and put about 50% ($1500) towards this part of my portfolio.

I would then actively trade with the remaining $1500, using BTC as my reserve currency, attempting to increase my overall BTC with every trade. For example, if today TRX was trading at 400 Satoshi, I would buy a few hundred and when it rose to 500 Satoshi, (for example,) I’d sell it. This would mean I make 20% on that particular trade, increasing my overall BTC holdings. Because the cryptocurrency markets are notoriously volatile, I would likely be able to make those types of trades a few times a week and have my trading capital grow exponentially as the profits compounded. If my trading capital became more than 75% of my overall portfolio, I would top up my index strategy or vice versa.

A Strategy for Everyone

This would be a simpler strategy that I think most readers could potentially use, as long as they were to stay up to date on market movements and the news from around the sector. I would strongly advise against anyone attempting to trade in the financial markets who don’t have the required access to that type of knowledge, experience or access to a professional advisor.

The crypto markets are open 24/7 and they can move very quickly in comparison to traditional stock or forex markets. Staying on top of that data is easier said than done; however, thanks to publications like CoinBeat, it is much easier to stay ahead of the informational curve.

A great place to start would be the daily and weekly updates available on CoinBeat, also look for professional analyses on upcoming projects and ICOs as they tend to give huge returns when successful.