Quantitative Cryptocurrency investment strategies

While there are many cryptocurrency investors out there who prefer to buy and hold their digital coins until a later date in the hopes of a more significant reward, there are also plenty of people who purchase and sell their digital tokens for a smaller yet more consistent profit.

Each of these investment methods comes with its own ups and downs, and to give you an idea of what you should do, we’re going to look into how quantitative strategies work and why they’re often worth a second glance.

What exactly are quantitative crypto investment strategies?

Essentially, the goal of these kinds of trading strategies is to continuously trade underlying assets. You’re going to want to invest in an asset consistently and take advantage of price fluctuations wherever possible in order to be successful in your trades. Because of this, it can often prove to be a better strategy than simply buying and holding.

Even so, it is worth noting that quantitative strategies can still come with certain risks, too. For example, some may find that they’ll end up missing out on profits because of the higher trading volume. Being involved in the market more does have its benefits though; for example, investing in the moment and being aware of the market could help you to keep a tighter grip on how much you lose or gain.

Buying and holding can often be cost-effective and a generally good option, although the volatility of these digital assets by year is certainly something that can be scary for investors (especially those just starting out). For anybody who wants a little more control with their investments, quantitative trading strategies are often going to be an excellent choice.

What are some examples of quantitative strategies?

You’ll often find that there is a broad range of crypto investment strategies that fall into this particular category, some of which you may have heard about. Here are a couple of trading methods that may be worth considering if you’re looking to take advantage of what quantitative strategies have to offer:

• Trend-following
• High-Frequency Trading (often abbreviated to HFT)
• Alternative data
• Machine learning

While far from all the options, these are a few that are worth thinking about.

Need a little help with your investments?

Fortunately for anybody who needs a good crypto asset management team to assist them in their investments, there are generally quite a few different places you can go for professional services and advice.