How to Deal with Volatility? - page 2.

@sriyan

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Quote from: Lee Dynamo on February 02, 2023, 10:38:50 AM

To survive in the volatile crypto market, consider the following strategies:

Diversification: Spread your investments across different cryptocurrencies and assets to minimize the impact of market volatility on your portfolio.
Long-term focus: Don't make short-term decisions based on market fluctuations. Instead, focus on your long-term investment strategy and goals.
Risk management: Set stop-loss orders to limit your potential losses and protect your investments.
Stay informed: Stay informed about market trends, regulatory changes, and technological developments that may impact the crypto market.
Don't chase returns: Avoid making impulsive decisions based on news or rumours that promise quick profits.
Seek professional advice: Consult a financial advisor or investment professional to help you navigate the complexities of the crypto market and make informed investment
decisions.

Remember that investing in cryptocurrencies BTC comes with significant risks and it's important to thoroughly research and understand the market before making any investment decisions.

I am using the dollar cost average to minimize the volatility. It is something like you can divide the capital into multiple parts and invest in defined time periods. So you can reduce the average cryptocurrency values. Another main thing following is news regarding crypto to get an idea about the market volatility. When you come to portfolio management, don't put all the eggs in one basket. You can put the eggs in multiple baskets to handle risk and losses.

These are a few things:

1. Doller cost Average
2. Following the News
3. Portfolio management
4. Rebalancing

sulendra12

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Quote from: Lee Dynamo on February 02, 2023, 10:38:50 AM

Long-term focus: Don't make short-term decisions based on market fluctuations. Instead, focus on your long-term investment strategy and goals.

It just depends on the playstyle that trader choose. People would think volatile market is really good for day-trading and if they can pull that off then it's good for them. Sure long-term is really beneficial in most cases but you can't neglect the fact that day-trading is promising if you know what to do in some situations and conditions.

Quote from: Lee Dynamo on February 02, 2023, 10:38:50 AM

Stay informed: Stay informed about market trends, regulatory changes, and technological developments that may impact the crypto market.

This one is great since if you follow the trend or updated news for most of the time you could catch up the hype and the train if you careful enough. But be aware for FUD and FOMO because that.

shinratensei_

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You just deal with it, volatility quite funny enough is the thing that so many people seeking when they investing in cryptocurrency because it could shorten their time of investing if a coin is volatile enough that it could either rise multiple folds or even decrease multiple folds.
The only way you could deal with it is having some kind of strategy since even diversifying won't seem to work since many of cryptocurrencies are always moves in unified movements, therefore you should always watch your investments more specifically the bitcoin trends. then if you want to avoid the volatility altogether after you're done with your investments you should just convert all your investments in stablecoin, that's the reason many favours it because it gives security towards your investment so that you will not worry about it for the long term.

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Quote from: AmoreJaz on February 06, 2023, 11:33:28 AM

Quote from: KingsDen on February 06, 2023, 03:13:59 AM

Quote from: Lee Dynamo on February 02, 2023, 10:38:50 AM

Diversification: Spread your investments across different cryptocurrencies and assets to minimize the impact of market volatility on your portfolio.

Lol... This is laughable. It looks as it you haven't own portfolio of different crypto assets before. You just read it from online. Was there ever a time that bitcoin will go down in the market and Etheruem and bnb for instance will continue to go up?
Bitcoin is the king and he is the driver of the market. When the king sneezes, the whole market shilvers.
So, if you are talking about diversification, it should be outside the cryptocurrency market and not among altcoins and shitcoins.

i guess, the OP is just giving a general piece of advise. as you said, it seems he just copied from all the other pointers that are already out there. but then again, if you do want to diversify your portfolio, as you said, look outside the crypto market. consider tangible assets like real-estate, gold and other precious metals and others. also, if you do want to invest other than btc, think of top alts only with rock solid foundation.hard to hold tokens or coins with pump and dump devs. volatility factor won't go away anytime soon, so that's part of this market that you seriously need to think about.

So many newcomers in the cryptocurrency industry who would say they want to diversify are not actually targeting to diversify, they are looking for the coin or any scheme that will double their money and that is why they're falling for scam projects and also run into the pump-and-dump schemes, in the end of the day they complain that cryptocurrency is scam

What we call diversification in cryptocurrency is not actually what it is called, but it is also better than buying some shit coins only by DCA method Grin

Fondarchand

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Cryptocurrency trading must have Volatility in price and is not shocking for users because they have to deal with it. This volatile market provides profit to its users because if it persist in decline form then it will never have gave any sense of benefit to its users. If you think about stable coins then your lost can be reduces but those who are new in trading does not have any knowledge about anything related to trading so certain strategies should must equipped by the users. Bitcoin has the ability to reduce hour loses so always select coin like Bitcoin.

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Quote from: KingsDen on February 06, 2023, 03:13:59 AM

Quote from: Lee Dynamo on February 02, 2023, 10:38:50 AM

Diversification: Spread your investments across different cryptocurrencies and assets to minimize the impact of market volatility on your portfolio.

Lol... This is laughable. It looks as it you haven't own portfolio of different crypto assets before. You just read it from online. Was there ever a time that bitcoin will go down in the market and Etheruem and bnb for instance will continue to go up?
Bitcoin is the king and he is the driver of the market. When the king sneezes, the whole market shilvers.
So, if you are talking about diversification, it should be outside the cryptocurrency market and not among altcoins and shitcoins.

i guess, the OP is just giving a general piece of advise. as you said, it seems he just copied from all the other pointers that are already out there. but then again, if you do want to diversify your portfolio, as you said, look outside the crypto market. consider tangible assets like real-estate, gold and other precious metals and others. also, if you do want to invest other than btc, think of top alts only with rock solid foundation.hard to hold tokens or coins with pump and dump devs. volatility factor won't go away anytime soon, so that's part of this market that you seriously need to think about.

AnonBitCoiner

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Market is not trustable because its highly volatile and if you want to get success then apply some strategies because they will help you to reduce loss percentage. The strategies you have given will aid in getting profit. Stop loss will minimize your failure and will aid in taking good revenue.

If a person is not familiar with cryptocurrency price and prediction of price then taking help from fellows and Telegram group will correct your decision.

KingsDen

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Quote from: Lee Dynamo on February 02, 2023, 10:38:50 AM

Diversification: Spread your investments across different cryptocurrencies and assets to minimize the impact of market volatility on your portfolio.

Lol... This is laughable. It looks as it you haven't own portfolio of different crypto assets before. You just read it from online. Was there ever a time that bitcoin will go down in the market and Etheruem and bnb for instance will continue to go up?
Bitcoin is the king and he is the driver of the market. When the king sneezes, the whole market shilvers.
So, if you are talking about diversification, it should be outside the cryptocurrency market and not among altcoins and shitcoins.

Hamza2424

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Op very simple avoid haha. Volatility is the opportunity and if you are not able to grab it then simply avoid it. In volatility for the Future traders it might be the curse or might be the blessing for them. Dear OP avoid future in volatility and hold your heartbeats take entry and give try to luck otherwise RIP volatility.

Captain Corporate

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It is definitely a psychological thing. I mean if you are not entirely sure where it is going, then it could be a very scary thing. If you don't own any, and its going up, you may feel a fear that you are going to miss out a chance to make a profit, buy it, but since it already went up, it could go down. Or even worse, you could sell because it is going down and you think it will bottom, so you sell at a loss, and then it goes up. You can see a ton of people saying "of course it went up as soon as I sold", because they do not wait, they don't "really" wait, nobody that waits years and years for bitcoin has ever lost, at most a year, but when its multiple, you make a profit. Which means that volatility could be beaten by ignoring the price and being long term.

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Quote from: tjtonmoy on February 05, 2023, 02:04:58 PM

Quote from: Rigon on February 05, 2023, 08:04:54 AM

Yes, it is definitely better to invest on Bitcoin. Investing in Cryptocurrencies is however risky then investing in Bitcoin is much less than that of Altcoins. If the Bitcoin market is dumping, there is a possibility of recovery later. We have seen the Bitcoin market pump and then dump after that but the market recovers. In this regard, no matter how dumping the Bitcoin market is, there will be a recovery. But there are some altcoins that are dumped and may not rise again in the market later. So I would say whatever you do don't invest unnecessarily in different altcoins. You will fall into loss.

Yes, this is the first mistake newbies make. The one easy way to get your hands on some crypto is some giveaway or airdrop. And most of the time they pay you with alts. So the first thing you get is altcoins. From this direction, newbies choose to stick with alts and not focus on Bitcoin. By the time they understand the value of bitcoin, they already lose a lot in alts. Not everyone does this, but majority of them fall for this. But a smart investor or trader will always choose BTC over any shitcoins.

I think this mostly applies to the newbies of this generation but back when most of us pioneers are still a newbie, there are no other popular cryptos that time than Bitcoin so this is the first coin that we approach.

There are less or no losses at all but only regrets for not hodling our BTC longer and not buying more. Losses are normal but lots of it can be painful though it's still great if the newbies realize that BTC is much safer than some random alts. They can still possibly recover what they have lost before if they buy and HODL BTC harder. For us experienced users, many of us can still play around with altcoins and it's not wrong either because we already know how to play their game.

tjtonmoy

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Quote from: Rigon on February 05, 2023, 08:04:54 AM

Yes, it is definitely better to invest on Bitcoin. Investing in Cryptocurrencies is however risky then investing in Bitcoin is much less than that of Altcoins. If the Bitcoin market is dumping, there is a possibility of recovery later. We have seen the Bitcoin market pump and then dump after that but the market recovers. In this regard, no matter how dumping the Bitcoin market is, there will be a recovery. But there are some altcoins that are dumped and may not rise again in the market later. So I would say whatever you do don't invest unnecessarily in different altcoins. You will fall into loss.

Yes, this is the first mistake newbies make. The one easy way to get your hands on some crypto is some giveaway or airdrop. And most of the time they pay you with alts. So the first thing you get is altcoins. From this direction, newbies choose to stick with alts and not focus on Bitcoin. By the time they understand the value of bitcoin, they already lose a lot in alts. Not everyone does this, but majority of them fall for this. But a smart investor or trader will always choose BTC over any shitcoins.

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Quote from: GreatArkansas on February 05, 2023, 09:32:03 AM

I don't really agree here because you don't need really to diversify if you are just positioned on a good coin and good size, you will not really have a problem at all about diversification.
The best example here was Bitcoin and other altcoins, there is some time before that I regretted converting my Bitcoins to buy some altcoins. I calculated, if I just held my Bitcoin, I got more profits.

I think you got it right, but if you are more patient you will definitely get better returns. Basically this market can generate profits for both bitcoin and altcoin, both of which are equally profitable but of course with different proportions.

I have diversified assets so far and I own bitcoin as well as altcoin. I can expect both of these assets to give me decent returns, but I rarely convert bitcoins to altcoin, but I only prioritize DCA to buy them both on an ongoing basis.

Gladitorcomeback

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Strategies you mentioned are beneficial for those who wants to be successful in trading but one other strategy which I think that everyone should follow is that a person should not make sudden decisions first think that whether you are doing well or not. Like if trader sell the coin at low price and do not think that it will be enhances and do not think about holding so it's the fault of trader.

Market is not stable all the time it goes pump and dump so trade accordance with the market condition is good way to get income. Although users do no have information about the market pump and dump so keeping eyes on price chart will help the users to make better decisions.

GreatArkansas

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Quote from: Lee Dynamo on February 02, 2023, 10:38:50 AM

Diversification: Spread your investments across different cryptocurrencies and assets to minimize the impact of market volatility on your portfolio.
(.....)

I don't really agree here because you don't need really to diversify if you are just positioned on a good coin and good size, you will not really have a problem at all about diversification.
The best example here was Bitcoin and other altcoins, there is some time before that I regretted converting my Bitcoins to buy some altcoins. I calculated, if I just held my Bitcoin, I got more profits.

cryptothreads

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Quote from: Yamifoud on February 05, 2023, 07:41:35 AM

It was indeed worrying for those who are not risk-takers and of course, for those who don't understand the nature of the market.
The volatility of the market is not the thing we consider a threat but indeed, it was a beneficial tool to help us traders and investors to gain profit. As we can see, the sudden pump of Bitcoin becomes widely talk not only in social media but also in the business world. It means that it attracts more attention and curiosity which brings more people to invest.

Yo dude, it's totally understandable to feel worried about the market and its volatility. But, let's not forget that these ups and downs can be used to our advantage as investors and traders.

I mean, just look at the recent buzz surrounding Bitcoin - it's getting major attention and drawing in more people to invest. So, instead of seeing volatility as a threat, let's see it as an opportunity to make some sweet gains.

Rigon

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Quote from: tjtonmoy on February 02, 2023, 01:29:17 PM

Quote from: Lee Dynamo on February 02, 2023, 10:38:50 AM

Diversification: Spread your investments across different cryptocurrencies and assets to minimize the impact of market volatility on your portfolio.

I'm not so sure about this one, tho. I have close to zero trust on Alts. It totally centralized and can go downhill at any given time. While its rise may seem pegged to BTC, but it's not. Bitcoin will pump to the sky, while many alt coins may fall to the ground. So the best bet is to only Buy and HODL BTC. You can try Dollar Cost Averaging to survive the bear market. And on the bull run, it will also help. Invest in BTC in parts, but not in shitcoins.
Buy low, sell high. Or HODL for long term investment plan.

Yes, it is definitely better to invest on Bitcoin. Investing in Cryptocurrencies is however risky then investing in Bitcoin is much less than that of Altcoins. If the Bitcoin market is dumping, there is a possibility of recovery later. We have seen the Bitcoin market pump and then dump after that but the market recovers. In this regard, no matter how dumping the Bitcoin market is, there will be a recovery. But there are some altcoins that are dumped and may not rise again in the market later. So I would say whatever you do don't invest unnecessarily in different altcoins. You will fall into loss.

Yamifoud

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It was indeed worrying for those who are not risk-takers and of course, for those who don't understand the nature of the market.
The volatility of the market is not the thing we consider a threat but indeed, it was a beneficial tool to help us traders and investors to gain profit. As we can see, the sudden pump of Bitcoin becomes widely talk not only in social media but also in the business world. It means that it attracts more attention and curiosity which brings more people to invest.

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Always make a trading plan so you have a track of when you got lost in your current situation because of the market volatility, for me ideal here is to keep updated with the current news so we know how the economic status really affects the market price of the bitcoin and if this is suitable with your trading plan you can now make a stop loss and take profit immediately. Another thing is to prevent doing a single investment in a single coin scattered your assets to prevent the price of the other asset goes down not all of your current portfolio losses.

tygeade

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Quote from: hugeblack on February 02, 2023, 05:00:15 PM

Diversification means your investment in different investment sectors. These sectors are not related to each other, or at least they work in opposite ways, so that you achieve a gain if one of them decreases because it works in the opposite direction.

Yes, of course. Diversification principle emphasizes NOT to invest in single thing with ALL 100% of capital. So, you may diversify within crypto space like 50% in bitcoin and 30% in ETH and then 20% in LTC. Again, investing only in cryptocurrencies (yet diversified crypto portfolio) will not help so for example, if you choose real estate means, you should not buy properties in a same city but you should diversify by buying in urban towns and agriculture lands in villages as well.

Diversification can help to cope up against volatility because different assets must be having different appreciation rate and different volatility levels. So, overall rate growth rate will have significant improvement over the time for sure.

Topic: How to Deal with Volatility? - page 2. (Read 463 times)