Best Crypto Investment Strategy for 2023
Updated: Apr 27
As the world gets more digital, cryptocurrencies are becoming more popular as a viable investment option. With 2023 still, on the roll, it's time to consider the best crypto investing strategy for this year. However, with so many cryptocurrencies to select from and a turbulent market that is always changing, it can be tough to know where to start. In this blog, we will look at the best crypto assets for investment in 2023 and offer advice on how to develop a solid crypto investing strategy. Whether you're an experienced investor or just getting started, this blog will help you make informed decisions and optimize your potential profits in the ever-changing world of cryptocurrency
This is not financial advice. Cryptocurrencies are not insured and you can lose all your money investing.
Understanding the Crypto Market in 2023
Understanding the crypto market is essential for any successful crypto investing strategy, and it will be even more critical in 2023 as the market evolves and matures. Here are some crucial elements to remember when attempting to comprehend the crypto market in 2023:
Increased Mainstream Adoption: As more firms and individuals embrace cryptocurrencies, mainstream adoption is expected to rise further in 2023. This is evidenced by the increasing number of merchants and businesses accepting cryptocurrencies as payment, as well as the increasing number of institutional investors entering the sector.
Regulatory Environment: While cryptocurrency is still mostly unregulated in many parts of the world, this is expected to alter in the coming years. It's critical to stay up to date on regulatory developments in your jurisdiction and how they may affect your investments.
Market Dominance Shifts: While Bitcoin has long been the main cryptocurrency, other coins such as Ethereum and Binance Coin are gaining ground. It is critical to monitor these fluctuations in market dominance and adjust your portfolio accordingly.
Decentralized Finance (DeFi): DeFi is a new movement in the crypto world that provides a variety of financial goods and services that operate outside of the traditional banking system. As DeFi expands, it's critical to understand how it works and how it can affect the greater crypto market.
Technology developments: The crypto industry is continually growing, with new technology developments and innovations being introduced on a regular basis. It's critical to stay up to date on these changes and how they might affect the value of various cryptocurrencies.
2023 has been a strong year for cryptocurrencies so far. Bitcoin YTD (year-to-date) return stands at 64%. That is far out-performing the S&P 500 which is only up 8.24%. Bitcoin seems to have bottomed at $15,500 as it broke the resistance and rapidly rose in the past 4 months. I predict 2023 will be a choppy year, meaning crypto prices will fluctuate around current prices. We might even enter a fake rally with a sudden push then ultimately collapse back to the 30 thousand range. End-of-year prediction for Bitcoin is $37,500 and highs of up to $43,000.
Choosing the Right Crypto Assets for Investment
Choosing the correct crypto assets to invest in is an important part of any successful investment strategy. It can be difficult to know where to begin with so many cryptocurrencies to pick from. Here are some important aspects to consider while selecting the best cryptocurrency assets for investment:
Market Capitalization: A cryptocurrency's market capitalization provides information about its total value and popularity in the market. Larger market capitalizations, in general, can suggest greater stability and growth potential.
Team and Development: It is critical to investigate the development team behind a cryptocurrency to ensure that they have the necessary expertise and experience to construct a successful project. This includes comprehending their development roadmap and evaluating their progress toward accomplishing their objectives.
Use Cases: Understanding a cryptocurrency's possible use cases will help you estimate its long-term viability and growth potential. Some cryptocurrencies may be built for a single use case, such as supporting secure peer-to-peer transactions, whilst others may be developed for a broader range of applications.
Industry Trends and Developments: Keep an eye on industry trends and developments that may have an impact on the value of cryptocurrencies. The rise of decentralized finance (DeFi) and non-fungible tokens (NFTs), for example, has opened up new avenues for Bitcoin investing.
Technology and Security: A cryptocurrency's underlying technology and security features can have an impact on its prospective value and long-term viability. It is critical to investigate the technology underlying a cryptocurrency and ensure that it is secure, scalable, and capable of handling a huge volume of transactions.
Liquidity: When deciding which assets to invest in, the liquidity of a coin is also an important issue to consider. Higher liquidity cryptocurrencies are often easier to acquire and sell, making them more appealing to investors.
By taking these variables into account when deciding which cryptocurrencies to invest in, you can create a diverse and well-informed investment portfolio with the potential to earn high returns over time. However, keep in mind that investing in cryptocurrencies is inherently dangerous, so conduct your own research and seek expert counsel before making any financial decisions.
Implementing a Crypto Investment Plan
Now presenting to you, a crypto investment plan for 2023. 2023 is the year that you should buy crypto. Why's that? Crypto follows a cyclical pattern like any form of investing which has its ups and downs. Bitcoin's cyclical pattern is in 4 stages for the 4 years between the Bitcoin halving timeframe.
Bitcoin's halving price history shows proof that this pattern always occurs. This graph was made in 2019 and the predictions were correct for the 2020-2024 cycle. Bitcoin reached an all-time high of $68,789.63. Then it collapsed to $15,599.05. If you looked at the past before investing, you would've known when to invest and what time to sell.
The next Bitcoin halving is expected to occur in April or May 2024, the block reward will fall to 3.125, reducing the award to miners. Keep this date in mind because you should aim to do most of your investing before this. Why? You should do it to maximize your earnings and pay less taxes. Bitcoin usually peaks 18 months after halving. So, if you purchase before halving then you'll pay long-term capital gains tax. You could pay 0% tax if your income is low and up to 20% tax for the highest tax bracket.
If Bitcoin were to halve in April 2024 then the peak price should be around September to November 2025.
How much should I invest?
Always, invest in what you can afford to lose. You will need to hold on to your crypto for a few years for you to multiply your money. It might sound odd for me to suggest this to you, but I think the best investment strategy is to invest all the money you're comfortable with investing into crypto. No stocks, bonds, treasuries, just crypto. This is a very risky approach and do this with caution if you proceed, but if you want to make a lot of money you need to take risks. This is a risk with a proven track record, but no money is secure in crypto.
Let's dive into how much you can make
My prediction for Bitcoin is $150,000, which is 5x the current price. So, every $1 you invest could be $5. That's an amazing return for just 2 years of holding. You could be able to pay off your loans, put the money into interest-paying accounts, purchase real estate, etc. The list goes on and on. If you're looking for growth, then investing in crypto is the move, especially Bitcoin if you would like the most certainty compared to other cryptos.
To summarize, investing in cryptocurrencies can be a lucrative opportunity for people who take the time to learn about the market and make informed investment decisions. Investors can establish a diverse and well-informed investment portfolio that has the potential to earn substantial returns over time by staying up to current on regulatory developments, selecting the correct crypto assets, and recognizing long-term investment opportunities.
However, investors should keep in mind that investing in cryptocurrencies is inherently dangerous, and they should always conduct their own research and seek professional guidance before making any investment decisions. Furthermore, it is critical to approach cryptocurrency investments with a long-term mindset and to be prepared for the volatility and uncertainty that comes with investing in new markets.
Overall, investing in cryptocurrencies may be a worthwhile addition to any investment portfolio with the appropriate attitude and dedication to remaining informed and making informed investment decisions.
2023 is the best opportunity to invest in crypto. You'll look back to these prices in a few years and wish you had bought it now.