Understanding Active and Passive Investing in Crypto
When considering investing in the crypto industry, it’s important to understand the concepts of active and passive investing. These two approaches have different strategies and outcomes.
Passive Investing Explained
The standard belief is that buying a crypto gem at a low price and holding onto it for a long time will result in maximum gains. While this may be true to some extent, luck also plays a role. Many gems may not survive until the next bull run, as evidenced by Trustpad’s recent hacking incident which caused its price to plummet.
Active Investing Strategies
Active investing involves using various tactics for increased gains, including riding the market’s fluctuations, generating passive income through staking and airdrops, conducting regular portfolio checks, and capitalizing on news and events.
While passive income offers peace of mind, active investing requires significant effort. However, by doing thorough research, you can take action based on informed decisions.
The Extra Gains of Active Investing
Based on scientific data, active investing has resulted in an 8% higher gain over two months compared to passive investing. Although the portfolio would have looked better with no tweaks, the active approach has still proven to be profitable. This demonstrates that active investing can offer better gains and risk management when approached strategically.
Hot Take: The Value of Active Investing in Crypto
In summary, actively investing in a scientific way can yield better results in terms of gains and risk management. By being proactive and informed, you can optimize your crypto investment strategy for success.
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