Digital currency industry has both made and broken many millionaires. Volatility is the keyword for the crypto sphere that has earned the industry both kudos and flaks- and for all the right reasons. Unlike the traditional trading market, the crypto market can surge to a mighty 70% or even more in just a few days. On the other hand, when the market plummets, the cryptos can drop to almost nothing in the blink of an eye. The entire crypto market shot to $3 trillion in 2021. In less than a year, the market had a devastating fall that tanked the market value to less than $1 billion. Bitcoin lost 17% of coin value in just a single day when a leading EV manufacturer refused to accept BTC payments given environmental issues. It’s self-explanatory why a good lot of investors are apprehensive of investing in crypto. But, the good thing is, the right cryptocurrency investment advice will save you from the losses and also ensure an inspiring experience with investing spot crypto at Multibank.io.
The post below offers a brief on the best cryptocurrency investment advice.
The Crypto market is just a little over a decade old. You have not grown up understanding nuances of crypto investment or cryptocurrency investment advice.
So, crypto is a new field even for veteran crypto traders. And research is mandatory if you are foraying into a new arena. Bottom line is, you have to undertake thorough research about the crypto space if you want a less risky experience. The best cryptocurrency investment advice is to gather an in-depth understanding of the tech behind crypto, the process of how cryptocurrency works, different kinds of cryptos and their uses or purposes, the teams behind them, and so on. You also should browse through articles, forums, posts, or any reliable resource that offers genuine cryptocurrency investment advice.
It will take you around 4-6 months to undertake a thorough research before you actually proceed to invest in cryptocurrency. It might apparently seem to be a lengthy period but you need the time to enter into the crypto zone with an informed mind. Nothing is worse than signing up with a wildly volatile market all blind.
Also, you will need to carry technical or fundamental analysis, or sometimes both, whenever you will invest in a new crypto.
Diversify investment portfolio
This is extremely crucial cryptocurrency investment advice.
You might have heard this classic adage when it comes to investment- never put the entire bunch of eggs in a single basket. The same strategy applies for crypto investment as well. Almost every other article or post on cryptocurrency investment advice sheds light on the significance of diversifying your investment portfolio.
Diversification implies distribution of your entire investment sum into multiple crypto assets. This way, you will have other coins for backup if one of the coins takes a dip.
Don’t skip on legacy coins
New crypto investors generally look for coins with low entry points. Major cryptocurrencies like Ethereum or Bitcoin command higher prices in comparison to newer coins. Thus, most of the new investors have a tendency to skip bluechip coins and incline mostly towards new altcoins. No cryptocurrency investment advice will ask you not to check out new altcoins, especially if they show promise. But every cryptocurrency investment advice will stress on not to miss out on bluechip coins, such as BTC or ETH.
Bluechip coins have already proved their worth in the market. They have been through bearish phases but they also carry a strong history of recovery. They have stood the test of time till now and their mighty past makes them extremely credible investment options for both beginner and veteran traders. In fact, bluechip coins like ETH and BTC are poised to surge further in the coming months and years. So, if you want best cryptocurrency investment advice, well, according to most experts, you can go for HODL.
And if you are worried about the price point, the cryptocurrency investment advice is to invest in a fraction of these coins.
Open both long and short positions
This is probably the best cryptocurrency investment advice to combat market volatility.
In long position, the cryptocurrency investment advice is to buy and invest when prices are low. Then, you wait till the prices go up. If the prices show an upward move, then you sell it to enjoy high profit. But what if the market takes a downward stance? Now, this is where the cryptocurrency investment advice is to go for shorting or crypto short selling.
The order of trading in shorting is in sharp contrast with the long position. In this case, the trader will sell the assets when the price is high and purchase when the price is low. While long positions will enable you to make great profits when the market is up, shorting will protect you and shower you with profits when the market goes down.
It’s to note here, you will need leverage to trade in both long and short positions.
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This is another cryptocurrency investment advice that will help you to protect yourself from market volatility in the crypto sphere.
So, the cryptocurrency investment advice is to put a certain sum of money on your chosen crypto at certain fixed intervals. You can make the recurring per week or per 15 days or per fortnight.
The best part about this cryptocurrency investment advice is that here you will have a regular investment practice that would be unaffected by constant market ups and downs. It’s because you are allocating a fixed amount. The other reason is, since the recurring usually runs in the long-term, if you received less coins in the past due to the bearish market, you will be able to earn more when the market is up again.
In other words, this cryptocurrency investment advice or tip helps to smoothen down the frequent market swings for you.
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The last bit of cryptocurrency investment advice is to store your crypto holdings in a 2FA-backed cold wallet.
Trading always carries some degree of risks. The strategies mentioned are not 100% risk-proof-no strategy will ever be. But, these strategies are based on expert cryptocurrency investment advice that are meant to keep the investors and traders protected in crypto’s Wild West market.