#ETH Yesterday I wrote about the probabilities of short-term gains in Ethereum and Bitcoin. Today, the price of ETH plummeted due to some network issues. In this market, variations occur due to several factors. Updates, hacker attacks, sales of the asset by large whales, or purchases made by corporations, cause values to fluctuate 10%, 20%, and even more!
How to profit or protect yourself in such an uncertain market? Below are some suggestions:
1 - Study and Research
Since it is different from the traditional market in several aspects, it is essential to invest time and effort in education and research. Understanding the fundamentals of cryptocurrencies, analyzing price charts and studying market trends will help you make informed decisions.
2 - Risk Analysis
Having good risk management is a fundamental part of any successful cryptocurrency trading strategy. Setting stop losses, defining profit targets and diversifying your portfolio are some of the essential practices you should have. Good profits are profits in your pocket! Don’t believe in infinite growth. Therefore, when you reach a good profit, close the trade, and have patience to start all over again.
3 - Keep Calm and Discipline
Amidst the volatility of the cryptocurrency markets, staying calm and disciplined is essential. Avoiding impulsive and emotional decisions, sticking to the trading plan and learning from mistakes are crucial skills that will help traders successfully navigate the market turbulence.
4 - Automation and Technology
Automation is a powerful tool for cryptocurrency traders, allowing for fast execution of trades and the implementation of complex strategies. The use of trading bots and intelligent algorithms can help traders make the most of market opportunities and minimize the time needed to monitor trades.
