4 Major Strategies For Crypto TradingC.A. Writer
Investing in cryptocurrency can be very volatile. Though it is not a bad thing because a lot of profit can be made from the volatility of the market especially during a bullish market. Many, during a bearish market, consider it a terrible time or day in crypto markets. Some strategies that can help you with such circumstances include;
Always Have Reserve
As we know there will always be corrections in the market, so be prepared by not going all into your crypto investment. Ensure you have some cash on stable coins like USDT, USDC, and BUSD for the bearish or corrective days, so that you will be able to buy up things (coin/token) that suddenly become very cheap.
Always Be Updated With The Trend
You have to keep yourself up to date with everything happening in the crypto world by going for crypto news. This is one of the things we do in Cryptopreneur Africa, we do this so you can understand the reason why cryptocurrencies (coin/token) are moving.
“It is risky when you don’t know what you are doing”
So equip yourself with every useful information and resource you can get your hands on.
Always Invest Wisely
In investing wisely, there are two rules which are referred to as “The Golden Rule” and they are;
- Never invest what you can’t afford to lose.
- Never invest borrowed money.
There is always that dream of becoming a millionaire overnight, but it is worth noting that crypto is a risky investment. It can surge 1000%, but it can also go down 90%. Always have that in mind. Imagine investing borrowed money in Squid Game Token, definitely not a good place to be. It is advisable to invest money you don’t need anytime soon.
Always Use Stop Limit Order
Stop losses is one of the great strategies especially during a high bull run, it is also wise to adjust your stop-limit order from time to time to capture more profit. So when corrections hit the market you will wait outside the storm, with cash. There is also a disadvantage because you could miss a bounce back and some profit. Sometimes being extremely careful can prevent you from making huge gains.
The crypto-trading business is very risky, which is indeed a fact you must take seriously.
So before you think of diving into it, do take note of these strategies listed above. They’re proven strategies that will help you manage the risks involved while trading any cryptocurrency.
Some crypto-traders, who’ve used these strategies while trading tend to always be on a safer side when the crypto market comes crashing down. It’s better to lose 3% of your capital and have a greater chance at recovering back than to lose 70% with zero or little chance of recovering back.
Loss is always a necessity in all businesses, but the best part of every business is having your profit surpass your losses.