5 Vital Tips For Crypto Investors & Traders
There is nothing that can be done to shield a person from the power of cryptocurrency price fluctuations, no matter how skilled they are in trading. The usual metric of daily changes for Bitcoin (BTC) is now 64 percent annualized. In comparison, the S&P 500 has a volatility value of 17%, while WTI crude oil has a volatility metric of 54%.
However, by following these five simple guidelines from 9janotes, you may be able to prevent the psychological effects of an unexpected 25% intraday price movement. Fortunately, holding these strategies during periods of extreme volatility does not require specialized technologies or large amounts of money.
5 Vital Tips For Crypto Investors & Traders
1 Have a purpose to trade
There is nothing that can be done to shield a person from the power of cryptocurrency price fluctuations, no matter how skilled they are in trading. The usual metric of daily changes for Bitcoin (BTC) is now 64 percent annualized. In comparison, the S&P 500 has a volatility value of 17%, while WTI crude oil has a volatility metric of 54%.
It is important for you to have a motive or purpose for entering into cryptocurrency trading. Whether it be day trading or to scalp, a motive is always vital to drive you towards it. Get the idea clear that in cryptocurrency someone wins and someone loses. The cryptocurrency market is controlled by large whales and it is highly volatile. So when you make a small mistake, all your notes are in the hands of big whales. So sometimes it is better not to gain anything from certain trades than welcoming losses.
The best way to protect your cryptocurrency is to keep off from some trades.
2 Make target for profits and losses
The simple yet tough thing we need to know is when to get out of the trade whether we are on profit or loss of Bitcoin. It is important to set a stop loss level which can help in cutting your losses, this is one of the traits that all investors must have. This is also the same case for profits. Don’t be greedy, set a level for profits too so that things will stay right.
3 Stay alert during FOMO
Fear of missing out is one of the most common reasons why cryptocurrency traders fail in the art. Most of the people see cryptocurrency trading from outside and start assuming things that they are going to run into profits. But this is not the realistic picture of cryptocurrency trading. Your fear of missing out can be a good opportunity for others to catch hold of the digital currencies. So stay alert in such situations.
4 Keep tab on your risks
Be wise enough to not to run behind making massive profits, but rather stay put and gather small profits and be on the cryptocurrency trading on a regular basis. It is a good idea to invest less on your portfolio in a market which is less liquid.
5 Risk management
When we look at the cryptocurrency market, the prices of most altcoins depend on the current market price of Bitcoin. It is essential to understand that Bitcoin is relative to fiat cryptocurrency which is highly volatile. Simple thing you must note is that, when Bitcoin price rises then altcoins fall, it is vice versa. This may confuse most of the cryptocurrency traders. And so it is better to have either close targets or simply not trade at all during those times.
