Successfully Navigating the Ups and Downs of the Crypto Market
Here’s a quick quiz: How often do you check to see what the crypto market is doing? Do you check it the first thing in the morning? After lunch? After dinner? Before you go to bed? A few more times in between? Every hour? Every few minutes? Are you refreshing that screen every few seconds?
If you’re like most digital coin holders, you are probably closely watching the ups and downs of the coin market on a daily basis. And when the price of Bitcoin drops dramatically and other coins follow, the uncertainty often leads investors to choose one of three routes of action.
You can stay the course and wait for the market to bounce back. You can buy more coins for a lower price and earn more when the market moves up. Or you can sit back and ride the downturn out.
While there’s no right or wrong way to manage through market volatility, the most savvy investors are prepared with a plan of action. When a downturn hits, they’re not caught off guard. Making decisions on the fly can often lead to mistakes. Being prepared with a strategy can help you maintain or even grow your crypto assets.
So what’s the best plan of action? Start by diversifying your crypto portfolio. Any risk manager will tell you that putting all of your eggs in one basket can lead to disastrous losses if the one coin you own takes a dive. By investing in different coins which are based on different protocols, you can reduce your chances of “losing it all”.
Next, have fiat currency available so you can buy in a downturn. Being ready to buy makes it easier to place your order when the time is right, especially when other traders are jumping right along with you.
Third, keep an eye on the global news and equity markets. The crypto market does not operate in a vacuum. The uncertainty created by the COVID-19 pandemic has raised the profile of contact-less transactions. Fluctuations in the international equity markets are fueling renewed interest in crypto. Being in the know means being prepared.
Finally, look to STEX for help and support in building your investment plan and trading to win. We’ve built our platform to make it easy for you to track, manage and trade your digital assets quickly, easily and securely. Plus, our Smart Services offer even more ways for you to buy and sell crypto with your bank card or bank account. Whichever way the market moves, be ready to seize the opportunity with STEX.