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Big Wins, Bigger Losses: Why a Long-Game Approach Is Necessary to Thrive During the Growing Pains of Crypto Investing – Expert opinion by Kirill Bensonoff

Vladislav Tikhonov



Kirill Bensonoff Entrepreneur On Crypto Investing

Kirill Bensonoff is no stranger to cryptocurrency investing. Bensonoff bought his first Bitcoin in 2013 and since then he has participated in dozens of ICO’s and token generating events. This experience means that Bensonoff is also deeply familiar with crypto investing during downward market trends.  2018 has seen cryptocurrency subjected to a severe bearish trend due to regulatory actions, low financial volumes and a variety of other reasons. Investors have suddenly been forced to play the long game, holding coins in dusty wallets and waiting for better days. (Note: this article is for informational purposes only, not financial or investment advice or offer to invest.)

Playing the long game can be to your benefit, according to Bensonoff. Cryptocurrency investing might have recently experienced a lot of volatility, but the savvy investor can use this volatility to their own benefit. The average bear market lasts about 15 months, during which investors can gain financially by diversifying their holdings. Kirill Bensonoff suggests setting up a portfolio with a conservative investment outlook to provide stability during a market downtrend. This diversification also refers to how long investors keep their investment, and it is better to spread investments over shorter and longer term outputs says Bensonoff.

The Best Time to Buy Crypto?

It can be decidedly difficult to estimate what the best time to buy cryptocurrency is. Past performance is after all not a guarantee of future returns. Many cryptocurrency experts suggest that crypto investors looking to gain financially by playing the long game should consider the bear market the best time to buy coins. Investors with keen eyes and patient wallets can buy into projects at lower costs during the bearish trend with the idea of letting it appreciate in value in the future. The key is that these investors need to be knowledgeable enough to differentiate between projects affected by the overall market downward trend and projects which are performing poorly because they do not add value to the blockchain. As the old adage goes, cheap does not always equal valuable.

Investors playing the long game should stay on top of the market and find companies with long-term goals, experienced teams and good product ideas. These projects are more likely to outlast poorly performing projects in the long run according to Bensonoff. More experienced investors can also make use of other strategies like crypto shorting, or even “play dead” meaning to hold all coins without trading.

Where Is the Best Place to Store Crypto?

Looking to store multiple cryptocurrencies? Bensonoff suggests establishing the security of the wallets first. Blockchain security firm CipherTrace established that around $730 million worth of crypto coins were hacked in the first half of 2018 alone. There are two distinct types of wallets: Hot wallets and cold crypto wallets.

      • Hot wallets refer to wallets managed by online exchange platforms which handle the investor’s private keys.  This type of wallet is only as secure as the online exchange is, and Kirill Bensonoff does not recommend using this type of wallet for large amounts of coins.
      • Cold crypto wallets refer to wallets which are not connected to the internet. These wallets come in software and hardware forms and are purposely built to store cryptocurrency securely.
      • Software-based crypto wallets can be installed on nearly any device, and Bensonoff suggests researching carefully which type is most suited to the cryptocurrency that needs to be stored and which device is the most secure to install the software on.
      • The safest type of cryptocurrency storage is a hardware cold wallet. Hardware wallets remain the most secure as the private keys are stored on the dedicated device and are protected from online hacking.

Bensonoff states that the majority of cryptocurrency investors will find the best method to store multiple cryptocurrencies will be to have a combination of the above hot and cold wallets.

Equipped with the right tools and knowledge investors can play the long game in crypto and still come out on top.

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