Best Cryptocurrency Investment Strategies: The Definitive Guide [2020]

Essentially Bitcoin mining is when you connect computers to the Bitcoin network and download the blockchain to the computer, before allowing the computer to attempt to solve cryptographic puzzles in a race against other Bitcoin miners, with the miner that solves each puzzle first being rewarded with an amount of free Bitcoin.

This serves a dual purpose of incentivizing people to connect the computers to the Bitcoin network in order to secure it, as well as decentralizing the process of selecting which transactions are officially added to the blockchain, being that the winning miner also selects the next batch of transactions.

Crypto Markets have Recovered

As a result of the coronavirus pandemic which began at the end of 2019, but really took a hold on the world at the beginning of 2020, the cryptocurrency market, as well as many of the financial markets of the world, crashed heavily, where we saw the largest single day drop in the value of Bitcoin in its history in March.

The price of Bitcoin crashed to below $4000 before progressively recovering over the following weeks, and what is important for cryptocurrency investors to take into account now is that the cryptocurrency market has largely recovered from this low point to now having reached the same level it was at prior to the crash.

While there is still a good amount of volatility within the cryptocurrency market currently, from an investment point of view, the opportunity to be able to secure cryptocurrencies at optimal oversold levels seems to have largely passed.

While there may be a chance that we see further drops in the price of Bitcoin back down to around the $4000 point, that is definitely not ensured, and if that doesn’t occur, then we will be likely to see relatively flat trading over the long term or a continual increase in price, with neither of these being desirable compared to being able to safely invest into oversold assets.

Traditional Markets are still largely oversold

Unlike the cryptocurrency market, the traditional markets around the world are still remaining to be largely oversold and have not seen the same level of recovery that has been seen for cryptoassets.

Stocks, forex, commodities, derivatives, indices, and other traditional asset classes still remain substantially oversold, and especially in comparison to cryptoassets, they are substantially better investment opportunities at this point.

While cryptoassets have rapidly bounced back up to the previous levels prior to the crash, traditional assets are still struggling at highly oversold positions, which presents a strong opportunity for the safe generation of profit by moving into these markets.

Perhaps for cryptocurrency investors, it is worth considering whether or not to transition across to investing in oversold traditional assets prior to any kind of substantial increase in price that is almost inevitable to still be upcoming.

A way to mitigate some of the risk of the Coronavirus volatility

As well as the fact that traditional assets are largely oversold, while cryptoassets are largely recovered, the second major reason for considering investing in traditional assets as opposed to cryptoassets is that under the current volatile conditions, traditional assets provide additional safety and reduce risk with lower volatility.

Historically traditional assets have also all always had much lower volatility, and while there is an argument that the volatility in the cryptocurrency industry in normal conditions is advantageous, during a period as inherently volatile as we are seeing right now, selecting asset classes that have low of a little lower volatility may be a prudent choice in order to reduce risk.

With the current situation as it is being as volatile as it is, the level of volatility that is seen in the stock market is closer to being the normal level of volatility that is seen in the cryptocurrency market, with the volatility we are currently seeing in the cryptocurrency market being substantially higher than it normally is, and thus presenting a highly unpredictable position for cryptocurrency investors and traders to be in.

Being able to transition assets across to the traditional markets during this period of volatility is certainly advantageous to cryptocurrency investors, and is worth deeply considering while there is still the opportunity to do so.


PrimeXBT is the world’s leading cryptocurrency multi-asset margin trading platform, and over the past few years has grown exponentially to become one of the largest margin trading platforms in the world today managing up to $2 billion of global trade every day.

There is a wide range of assets listed on PrimeXBT, making it an excellent platform for the implementation of a wide range of strategies across a very wide range of asset classes.

These asset classes include cryptoassets such as BTC, ETH, EOS, LTC and XRP, with industry leading leverage of up to 100X on all cryptoassets, and traditional asset classes such as forex pairs, stock indices, commodities, and metals, with leverage of up to 1000X, applied to traditional assets on the platform.

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