Currently the price of crypto is continuously falling, i.e. from the end of November 2021 to Dec 08,2021, The crypto market fell from US$2.6 trillion to US$2 trillion, so as much as $600 billion of market value has been lost in a very fast time, Bitcoin price currently it is $48k while Ether costs $4,225.50, but I think volatility or price correction in cryptocurrencies is very reasonable, because no crypto price continues to rise without correction. It is not surprising that what happened in the past will also happen again in the future. Many crypto-loving friends always do the opposite. When the market is in a bull run, everyone doesn't want to miss out on buying crypto. But when the market corrected, everyone was worried about getting in, even rushing to sell a lot of their crypto. To overcome this, it's a good idea for traders to start building a solid understanding of risk management. Another thing, continue to monitor the latest market developments from trusted media. As a result, with all the information we collect, it will give us a strong signal about when is the best time to enter and exit the market.
Simple and Effective Way
Here are 3 simple and effective ways that you can do when crypto prices drop:
1. Buying Crypto Regularly
Just a suggestion, when the crypto asset market is experiencing a decline, that is the right moment to add potential crypto assets such as Bitcoin, Ethereum, Binance Coin, Solana etc. The best way, simple and can be done by anyone, is dollar cost averaging (DCA) aka saving Bitcoin. The trick is to do it regularly, for example, at the beginning of every month you buy Bitcoin with the same USD value. The purchase does not consider whether the price is high or low, because the main goal is to accumulate as much potential BTC or crypto as possible over a long period of time.
2. Staking and Earning Interest
If you hold crypto with a proof-of-stake consensus mechanism like Cardano, you can store it in a PoS-enabled wallet or exchange. Currently, there are many exchanges and wallets that provide interest if you store crypto, use this feature to earn interest on a monthly basis. So basically we must have long-term goals and insights.
3. Trade Arbitration
When the crypto market weakens, you can also trade in cash-and-carry arbitrage. This type of arbitrage involves trading between the spot market and the derivatives market (eg futures). The trick is in the spot market you place a long or buy position. Whereas in the derivatives market you open a short position or sell. The profit is derived from the price difference between the two markets.
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