We are living in the era of a decentralised future, in which there will be no authorities to solve our problems. Cryptocurrency is the trend that brings this era closer. Right now we need to do anything else but just mining and investing as if it were our only way of life. We need to create strategies and need to learn about the market and how to keep our portfolios safe and growing. We need to learn how to deal with bear and bull markets. There are several important factors that affect each cryptocurrency price and the market as a whole, you can use these factors to construct your own strategies for your trading or investing goals.
Strategy #1: Diversify your portfolio:
Diversification is one of the most important things in any crypto portfolio management strategy. It is a process in which investors try to reduce the risk by investing in multiple projects rather than investing all of their funds into one project or category. It is important to remember that at any point up to a certain point you can decide not to hold on to your investments, for whatever reason.
Strategy #2: Do your own research thoroughly:
Before investing in any cryptocurrency you must do your research thoroughly and understand every aspect of it first. You should also know what you are going to do with that particular cryptocurrency. There are hundreds of new coins and tokens released every day, it is extremely important to perform research before investing.
Strategy #3: Never buy at the peak:
Always buy your stocks when they are in the low point not when they reach the highest price. In this way, you can get a better price and also you will avoid much risk because there will be more people trying to sell than those trying to buy. This means that people who want to sell will be putting pressure on the price, lowering it with their large number of sell orders.
Strategy #4: Try to use the momentum of the market:
You must be able to determine when a coin or token is going up and when it is going down. If you can do this then it will be easier to time your buys and sells. Usually, coins go down after reaching their peak and they reach their peak before they go up, this means that there is a window of opportunity if you time it right between the peak and the high point. Remember that trading requires some knowledge of psychology, real life experience as well as market analysis.
Strategy #5: Try to minimise risk in your portfolio:
Investing in a cryptocurrency means that you are taking a risk. The rate of return on invested money depends on the market, but investing in a safe place will minimise your risk. The safest place to invest is where there are no risks involved and that is always the bank. But this is not what you want, because you want much higher returns, but in order to achieve high returns, you take the risk.
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