How to ride the volatile crypto tide?
As we are inching towards another decade in the 21st century, the world of finance is advancing technologically almost at pace with the rest of the scientific world. The invention of bitcoin by Satoshi redefined how we do business online. The end of 2017 was, in fact, an eye-opener of sorts as bitcoin reached an unprecedented height of almost $19,000; detractors of bitcoin called it a bubble that will burst soon while supporters claimed that this was just a tip of the iceberg. Currently, this cryptocurrency has crashed to under $10,000 and no one knows how much more it will fall and if it will rise again.
With so much of volatility in the market anyone who intends to make profits trading in cryptocurrency must know how to protect oneself from the roller coaster ride this is going to be. Here are a few tips to help you along the way.
- Information is power: Bitcoin is not the only one in the market, there are several other cryptocurrencies that you must pay attention to and gather information about. Set up alerts on your twitter and news apps for any news on these virtual currencies. It is important that you stay abreast of the latest happening in the field.
- Not all dips are bad: Ask any experienced trader and he will tell you that dips are an opportunity to build your wealth. Especially where cryptocurrencies are concerned these dips are part of their nature and you must not freak out at the first sign of a crash.
- Diversity is the key to success: No matter, how tempting a cryptocurrency might appear doesn’t put all your eggs in the same basket; always diversify your portfolio as this will shield you through the ups and downs of the market. It’s the time you take notice of the other cryptocurrencies and spread your investment and not just in bitcoin. This will mitigate your risk.
- Don’t overlook derivatives: It is common knowledge that derivatives are shielded from the volatility of their assets. Thus, when you invest in bitcoin derivatives which are available on CME and CBOE you diminish your risk. The derivative market is comparatively stabler hence your chances of making a profit are higher.
So, whether you are looking at crypto robots like QProfit system or at regular methods of investment, keep the above pointers in mind and stay afloat even when the tide is against you.