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Investing in virtual currency has become a pretty thriving business given the large number of stack coins in the cryptocurrency market. Many investors make millions by investing in cryptocurrencies like Bitcoin or Ethereum. Others, however, lose billions in the event of a cryptocurrency. So how do you survive a cryptocurrency? Which cryptocurrency should you bet on in this rather volatile market? The answers immediately.
The basic rules to follow in case of a cryptocurrency
An investment in cryptocurrency (bitcoin, ethereum, etc.) is quite risky as the exchange rate and exchange rate can change at any time.
The volatility of the Bitcoin exchange rate is more than 141 in a month, while the Ethereum exchange rate can easily pass the 186 mark.
The development of the currencies actually has an average volatility that fluctuates around 9 to 10. An investment that gives 10x or 100x return is in most cases quite risky. Thus, it is necessary to measure your investment well to avoid losing much more than you are investing.
But if you still want to get into the crypto market’s relentless world, here are some strategies and tips that can save the day:
Do your research before jumping into the crypto market
What to choose between the different altcoins when starting to invest in cryptocurrency? Do you want to keep your capital safe in your wallet or turn it into hundreds of billions on a crypto platform, even if it involves risks? In general, cryptocurrency exchanges do not include insurance or protection, so the risk of losing your capital is quite high. However, you can make millions and billions if you know how and when to invest your money.
How cryptocurrencies use your capital is pretty random. In fact, stock exchanges provide no information about the actions they perform with capital. Examining the cryptocurrency market and platforms is the only solution to avoid losing money during the cryptocurrency crash.
Do not try to predict the development of the cryptocurrency market
Depending on the time period, the price development of Bitcoin or Ethereum may experience a significant drop, just like what has happened in recent weeks. This does not mean that the crypto has reached the bottom. When entering the crypto market, one should avoid predicting its course by looking at the crypto. The market forecast is only 60% likely.
Avoid short-term stock trading
The crypto market is very volatile, which means that the Bitcoin or Ethereum exchange rate may experience a meteoric fall or rise in one day. Thereby, If you are one of the investors who is new to the world of cryptocurrency, you should avoid placing your capital on short-term trading at all costs. At the same time, for strategy, avoid leverage at all costs, which is quite common in the crypto world.
Knowing how to adapt during the cryptocurrency crash
To survive by exploring the cryptocurrency market, you need to focus on stack coins like Bitcoin or Ethereum. The thing is, if you follow crypto, you can see that the crypto market is following the same wave as the average financial markets.
In general, professional investors avoid the fall of cryptocurrencies by only investing their capital in stack coins like Bitcoin and Ethereum. Actuallye Bitcoin is among the cryptocurrencies that dominate the market, regardless of the change in the speed of other cryptocurrencies. Therefore, when the cryptocurrency market falls, all investors will expect BTC (Bitcoin) to be the first to recover against Ethereum (ETH), which is one of the stable currencies.
Thereby, a good portion of the capital or your actions must be allocated to Bitcoin (BTC), regardless of the change in the exchange rate of this cryptocurrency. The other parts of your assets need to be dedicated to other stack coins such as Ethereum. You can also keep the other part of your assets as fiat currencies (dollars, euros, etc.).
When cryptocurrencies fall, the Bitcoin exchange rate coincides with other cryptocurrencies. The best strategy to adopt is to allocate your capital well to reduce the loss of money until the period when the crypto market rate returns. This will greatly help investors stabilize their actions in the crypto market. Adjustment of your position should be done gradually. As the price of Bitcoin rises, you can convert some of your assets to other cryptocurrencies like Ethereum.
A trader should keep in mind that the crypto market can experience a sharp decline or a meteoric rise in a very short time. So you need to know how to spread your stocks to prepare for a cryptocurrency.