Cryptocurrencies or crypto assets are known to have high volatility. This is actually an opportunity for traders to trade and take profits. Even so, there are a number of tips for trading crypto as described below. However, before that it is worth understanding what volatility is in cryptocurrencies.
What is Cryptocurrency Volatility?
Cryptocurrency volatility is a measure of how fast and how much the price of a cryptocurrency changes. The higher the volatility, the greater the price change. For example, Bitcoin now fluctuates about 64% annually, while the S&P 500 (the American stock index) only changes about 17%. This volatility can make traders stressed and confused. But, there are some tips that can help you deal with the volatility of cryptocurrencies.
1. Keep Your Money in Crypto for at least 2 years
One tip is to make a long-term investment plan. Don't put all your money into crypto if you need that money anytime soon. Instead, divide your money into several different types of investments. And, make sure you won't sell your crypto before two years. This will prevent you from losing money as the price of the crypto drops.
2. Buy Crypto Regularly with the Same Amount
Another tip is to use the Dollar Cost Averaging (DCA) strategy. With this strategy, you buy crypto for the same dollar amount every week or every month, no matter the price of crypto goes up or down. This strategy will reduce your stress and anxiety because you won't have to worry about when to buy or sell crypto.
3. Use Few and Clear Analysis Indicators
When you analyze the crypto market, don't use too many technical indicators. Technical indicators are tools that show crypto price patterns and trends. There are many indicators you can use, but it is important to choose a few that are most suitable and useful. Too many indicators will only make you confused and difficult to decide.
4. Know When to Stop
Great traders are not the ones who are always right, but the ones who know when to stop. If you lose or misanalyze the market, it's important to admit you're wrong and pause to calm down.
5. Keep Your Investment in Profitable Crypto
Conversely, if you are profitable, consider adding to your investment rather than selling it. Do not rush to take profits, because the price of crypto may rise again in the future.
6. Ready to Adjust to Market Changes
Finally, remember that these crypto trading tips don't always apply to all situations. You need to stay ready to adjust to changing markets and your goals. So, stay flexible and wise in crypto trading.
By following these tips, you can reduce your risk and increase your success in crypto trading. Always do good research and manage your risk carefully.
How to Buy Crypto on Bittime
You can buy and sell crypto assets in an easy and secure way through Bittime. Bittime is one of the best crypto applications in Indonesia that has been officially registered by Bappebti.
To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. In addition, also make sure that you have enough balance by depositing some funds into the wallet. For your information, the minimum asset purchase at Bittime is Rp10,000. After that, then you can make a crypto asset purchase in the application.
Monitor the price chart movements of Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Also Read:
What is Death Cross In Crypto Trading
Cryptocurrency Investment: The Best Indicator for Crypto Trading
DISCLAIMER: This article is informational in nature and does not constitute an offer or solicitation to sell and buy any crypto asset. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices may change significantly from time to time and Bittime is not responsible for fluctuations in crypto asset exchange rates.
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