The world of cryptocurrency is very fast paced, volatile and filled with opportunities. Most people keep on talking about the same lines of HODLing, trading or staking but some hidden crypto investment strategies are there to help you take advantage of the cut throat market. But these are many times, these are underestimated strategies; nevertheless, they are quite effective when a person wants to think outside the box. In this post, here we will find out some of these hidden crypto investment strategies that have not been discussed but should.
1. Investing in Crypto Infrastructure Projects
As everyone is after the next crypto token and nobody cares about infrastructure, smart investors are quietly backing that which powers the crypto ecosystem. Most of the blockchain scalability, storage, oracles, and interoperability type of projects don’t get the same attention as meme coins, although I’m sure you might have your own examples of which I’m missing. They are however the backbone of the industry.
Developing layer 2 solutions like Polygon (MATIC) or cross chain protocols like Polkadot (DOT) is a type of investment that carries a lot of reward when these technologies gain increasing importance in the realm of blockchain adoption. Indeed, these hidden gems often have a long term potential because they offer some real solving problems in the crypto space.
2. Participating in Governance Tokens
Most people ignore governance tokens, but they can be a gold mine for both well and blind investors. Holders of these tokens can vote on the platform’s future and they have no vested interest in it. Early acquisition of governance tokens allows not only voting power but also placing yourself in a good position for the growth of the platform.
For instance, platforms like Uniswap (UNI) or Aave (AAVE) reward their community with governance tokens. If you participate in the governance, you will actually play a role in decisions that increase the value of the platform, meaning indirectly boosting your investment.
3. Dollar-Cost Averaging (DCA) into Micro-Cap Altcoins
Everyone knows of dollar costing averaging (DCA) Bitcoin or Ethereum, but applying that to micro cap altcoins can be transformational. Micro-cap coins are among the most volatile tokens in the market, but they also are very promising in terms of growth. The research part is key and you have to look at projects that have great fundamentals, an active development team and use cases in real world. DCAing into these hidden gems can reduce risk and is a way to be in a good position for huge gains if the project succeeds.
4. Trading Crypto Derivative and Options
Trading Crypto derivatives and Crypto options is a tough but lucrative strategy to pursue and most retail investors shy away from. Futures, options, and perpetual swaps are good tools for hedging your portfolio, as a way of speculating the market’s price movement, or even earning passive income by using advanced trading strategies.
For instance, one can make a consistent income by selling covered calls on Bitcoin or Ethereum and still hold his assets. But, such a strategy demands deep knowledge in the market and risk management which means it is not for beginners.
5. Exploring Off-the-Radar Ecosystems
While Ethereum and Binance Smart Chain still get most of the headlines, such as Avalanche (AVAX), Fantom (FTM), or even newer chains like Sui, Aptos, among others, go largely unnoticed. They make entry in these ecosystems easier and the growth potential higher as it attracts developers and users.
Finding promising projects within these ecosystems very early grants you the opportunity of being the first to profit as they grow, largely before becoming the mainstream. Decentralized applications (dApps) are worth looking out for with discrete lines of value proposition and live communities.
6. Using NFT Royalties and Intellectual Property.
Unlocked NFTs open doors to unique investment opportunities. However, NFTs also exist with royalties, where you collect a rate for each resell of the NFT. But if you wish to make passive income from NFTs, ideally put your money into NFTs with strong communities and utility.
Also, certain projects provide intellectual property (IP) rights to NFT holders, therefore you can monetize the content in many different ways. This hidden method consists of creativity mixed with financial opportunity.
7. The Proof of Stake chains other than ECC.
For Ethereum and Cardano, market is active, but smaller PoS chains offer higher rewards when less competitive, benefitting you for staking and supporting the network.
Research chains with strong fundamentals and development teams that are active. Staking early not only affords the opportunity for receiving rewards but also gives you the chance of getting price appreciation as the network scales.
8. Crypto Startup and Venture Capital Investment
Invest in crypto startups via venture capital or initial coin offerings if you are willing to take risks. Today, a lot of successful projects were started as small startups with incredible ideas.
However, you can invest in early stage projects on platforms like AngelList or DAOs (decentralized autonomous organizations). This strategy is highly risky, but carries extraordinary opportunities to change your life.
Conclusion
The race is won by those who dig deep, explore unconventional strategies, and are willing to fail. These hidden crypto investment strategies would help you invest in infrastructure projects, and the move to leverage NFT royalties.
And the most important thing, remember the research, patience and risk management. Despite this, the potential of these strategies might be worthwhile, but so are the risks. Always research thoroughly and invest wisely within your means.
We can consider different ways of crypto investments and explore hidden strategies for growth and success in this crypto world.
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