#ETHBreaksATH The most important strategies for dealing with the volatility of the crypto market to protect your capital and take advantage of opportunities:
1. Risk Management
Do not invest more than 5–10% of your capital in a single currency.
Use Stop Loss orders to set the maximum loss you can tolerate.
Do not invest money that you cannot afford to lose.
2. Diversification
Distribute your portfolio among strong currencies like BTC, ETH, and some promising projects.
Do not put all your money into "small coins" as their volatility is more severe.
3. Swing Trading / Scalping
Take advantage of quick movements for profit instead of fearing them.
Identify support and resistance levels and enter at the rebound.
4. Hedging
In times of fear, convert part of your portfolio into stablecoins (USDT, USDC) to protect profits.
Some traders use Futures contracts for hedging, but this requires high expertise.
5. Long-Term Investment (HODL)
If you choose strong currencies (like Bitcoin and Ethereum), sometimes the best approach is to hold for long periods and ignore daily fluctuations.
6. Monitoring and Analysis
Follow global news (regulations, Federal policies, institutional adoption).
Use technical analysis tools like RSI and MACD to identify entry and exit points.
🔑 Summary:
Volatility in crypto is both a threat and an opportunity at the same time. Those who lack discipline lose quickly, while those with a risk management plan can multiply their profits.