TOP-10 Trading Decisions On The Unstable Cryptocurrency Market
How To Act During Up and Down Trends
As it is known, the cryptocurrency market is very volatile, which can be considered both like the pros and cons of using crypto as a tool for getting income.
Why? Let me explain.
Volatility: Meaning and importance of understanding
According to Investopedia Volatility is a statistical measure of the tendency of a market or security to rise or fall sharply within a short period of time.
So, “volatile” is a kind of “unstable” synonym, but many users got used to making “easy and fast money” on such a market.
Many buyers and sellers consider unstable markets to be perfect and favorable conditions for trading. While large market variations can represent an excellent chance to get profit, they can also mean losing a lot of money if you are not prepared enough.
Unstable markets require traders to modify their approach and to pay attention to important points during volatile markets.
Since unstable markets happen more chances for trading, buyers and sellers are attracted to trading more. For many, it can end as a lousy decision, due to unstable (volatile) markets also produce higher losses. Make your trades wisely and always evaluate risk levels before doing any kind of operations
So, here are the main points you should definitely pay attention to:
Security-check
Security both for your funds and personal information is the most important thing while investing, depositing and storing your funds to any website. So it is an important thing for any market situations.
Pay attention to licenses, Legal part, team of the project a more. Remember that even a well-known platform can become scam.
Diversified coins in portfolio
If your investment portfolio will be separated into different coins it is probably the best way not to “loose everything”. I call such actions like “wise investment” and it 100% is. It lowers overall risk in general. How? Everything is simple — no matter what the current situation with economy is or what can happen in the nearest time, some assets will benefit, while other may not gain the price at the same time, so it offsets losses in the other assets. Also, the risks are reduced due it’s a veeery rare situation when entire portfolio would be wiped out by any single event. A diversified portfolio is your best defense against a financial crisis!
Always adapt to current market trends and situation
As it is known, there are several most popular types of trading. They depend on what goal do you have and how much time do you get. I mean even talking about Bears and Bulls — you don’t need to choose one strategy for all life — adapt, that works better!
Use suitable for situation Order Types
Understanding “the prime time” to trade is only a milestone part of the whole process. In essence, successful traders need to know how to make operations and which order is suitable for a particular situation according to the result you are trying for. For example, the most straightforward Buy & Sell orders are available on every crypto-platform. Still, traders who use only the buy and sell options may suffer losses due to the price slippage or trading without protective Stop-Loss functions and others.
Investing strategies and market analysis
Market analysis is a great tool to rely not only on personal opinion but also on statistics, it is also worth noting that at the same time, asset values and situations on different platforms may vary. There are many patterns on the market that are regularly repeated, the analysis will help you find the most optimal solution for such cases.
Don’t forget to check the min/max limits
Every cryptocurrency exchange or platform and even e-wallets has its own rules, commissions and minimum amounts. Always study this information otherwise you can lose your funds or even worth — your account can be banned.
Market Uptrend vs Downtrend
Both uptrends and downtrends are pretty much simple definitions to understand.
We call the uptrend situation when the price is gaining momentum or getting higher, “growing” in other words. Price growth indicates by the chart’s peaks and via getting to the new highs.
Downtrend has the similar to uptrend work-principle but in the opposite way of an uptrend situation. Which means that price is moving downward or getting lower. Characterized are also quite oppositely similar to an uptrend — peaks and troughs in the chart are falling as the trend goes on.
An uptrend is the most suitable time to purchase coins low with an idea to sell them high later. In other words, it is a chance for market-players to continue receiving profits until the trend turns to the downtrend market situation.
Downtrends won’t cause huge profits if you like going long, but they can be most useful in the case is you are doing a “short seller’s” positions with selling short by borrowing and then selling assets quickly after. The idea is to re-buy holdings at a lower rate as the price continues to decrease.
Being clever is to know you’ll never be educated enough — keep studying and wish you profitable trades 🖤
