Investing is the practice of acquiring an asset with the expectation of realizing a profit via its resale at a later date. Unfortunately, the price of cryptocurrency and other digital assets is extremely volatile.
When Bitcoin was originally made accessible to the general public in 2009, a token cost just a few cents. However, there has been a dramatic spike in price since then, often by hundreds of dollars in a few days.
These swings in value may be very profitable for investors. Still, they also carry the risk of significant losses, particularly for novice traders who may struggle to keep up with the market’s rapid ups and downs.
This article will discuss the meaning of volatility in the cryptocurrency industry, the reasons behind bitcoin’s volatility, other cryptocurrencies like IMPT, D2T, TARO, RIA, TAMA and the top five strategies to benefit from these factors.
What Does Volatility Mean?
The word “volatility” refers to the rapid changes in price that may occur in the worth of any investment (not just crypto).
Daily, it is not uncommon for crypto asset values to fluctuate by as much as 15% either way. Additionally, due to the volatile nature of crypto assets like Bitcoin, its value may either increase or decrease throughout a certain period.
What Causes Bitcoin To Be So Volatile?
The market for cryptocurrencies is comparable to the stock market in that real-world occurrences often significantly impact the value of various crypto.
Bitcoin’s market price is driven mainly by supply and demand, much like other investments, equities, and commodities. This means the number of coins in circulation and the price buyers are willing to pay for them.
Because there is a cap of 21 million coins, prices are expected to increase if the amount of coins in circulation grows closer to reaching that cap.
These developments, however, have only a marginal bearing on Bitcoin. First, Bitcoin’s susceptibility to various impacts may be to other underlying elements with a more significant influence.
How To Benefit From BTC Volatility
Now that Bitcoin seems poised for a breakthrough, investors and traders may ask how best to take advantage of the upcoming volatility.
There are many other methods that traders may use, but here are five that are available to the vast majority of bitcoin owners:
- Assert on Increased Volatility
Volatility futures, which rise in value when the market fluctuates and decrease in value when it dwindles, are a relatively risk-free option to profit from the breakout.
Contracts for volatility are novel in the bitcoin market, and thus far, FTX is the only respectable exchange to provide them. Through different futures, traders can also deliberately establish a stake in volatility.
- Increase Portfolio Diversity
Too much money invested in a single cryptocurrency is a bad idea, and prudent traders know this. So instead, they spread their holdings among various coins and tokens.
Diversifying your portfolio among various assets, including stocks and shares, digital currencies, and other investments, is crucial.
Due to the very volatile nature of the cryptocurrency market, it is recommended that investors only put their money into the largest coins by market capitalization and, most importantly, those with high potentials, such as IMPT, D2T, TARO, RIA, and TAMA. Let’s take a closer look at what makes these cryptos special.
Dash 2 Trade is a brand new crypto analytics platform that streamlines and improves the trading experience for cryptocurrency enthusiasts.
For this purpose, the cutting-edge Dash 2 Trade dashboard is available for use in developing and evaluating crypto market strategies.
In addition to trading, it may be used to monitor the state of the cryptocurrency market and draw conclusions about where prices are headed.
Furthermore, the website provides information on the economic and technological aspects of several digital currencies.
Users can compete for awards in D2T prediction competition by providing insightful market forecasts. Integrating with social media platforms like Reddit and Twitter, users can be notified of big market shifts using the app’s social trading capabilities.
Dash 2 Trade presale is approaching its end so it would be wise to hurry up if you want to invest in it at the best possible price.
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In an extremely short time, RobotEra gathered in its metaverse a huge number of users who immediately fell in love with the fantastic concept of this platform. Namely, by entering the RobotEra metaverse, you instantly become a robot, who can create a world according to its ideas, together with his robot companions.
Therefore, RobotEra provides an unprecedented way of entertainment, but at the same time, it gives you the chance to earn in different ways. But, to be able to do that, you need a TARO coin, of course. Its presale is in progress, so you have the opportunity to buy it at a more than good price!
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If you’re looking for a top cryptocurrency stock in the green energy industry, go no further than IMPT. It’s fantastic news that despite IMPT’s newness, presale is already nearing its end, much sooner than that was planned and expected.
Having been established on the robust Polygon blockchain, its long-term viability and stability are assured. IMPT’s main objective is to make buying and trading carbon credits easier, which is essential in the battle against climate change.
Carbon credits are equivalent to permits that allow their owner to release a certain quantity of carbon dioxide into the air.The global community’s shared goal of creating a more sustainable environment means that carbon credits will eventually find use in various contexts.
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IMPT’s IEO on Uniswap Set For December 14th
The presale of the IMPT coin will last only a few more days, and the first crypto listings have already been announced. Already from the middle of December, IMPT will be listed on Uniswap, LBank, and Changelly Pro, so hurry up, and invest in this coin while you can still get it at the presale price! Very soon, the price of IMPT coins will be much higher.
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Inspired by the free-to-play MMORPG of the same name, Calvaria: Duels of Eternity serves as the foundation for the Calvaria blockchain ecosystem. It is a card game inspired by Mexican mythology, and the figures on each card are distinct.
In tournaments, participants pit their skills and tactics to gain upgrades and prizes for themselves and their characters, each of whom has unique attributes.
In-game money, RIA, is the backbone of the game’s economy. In-game resources can be acquired through playing the game or by making investments in the game’s economy, and players have full control over these assets.
Blockchain technology allows players to more easily and accurately claim ownership of their virtual items inside a game.
Web 3.0 blockchain technology and Web 2.0 games are perfectly combined in the innovative blockchain ecosystem known as RIA.
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With cryptocurrencies outperforming the stock market over the previous years, Tamadoge, one of the top 300 digital currencies by market size, could become one of the most notable projects in crypto assets. Tamadoge, a meme currency, distinguishes it from the pack since its owners can expect both stable value and substantial profit growth in the future.
In addition to the TAMA token, the Tamaverse will also include mintable NFT Pets, which are obtainable by participating in the brand-new game.
Pets will be available in virtual reality by the end of the third quarter of 2023, allowing gamers to take their pets out into the real world in pursuit of TAMA tokens and bonuses. They’re scheduled to get fully 3D by the year 2023.
After a successful presale and continuation into the next round, Tamadoge will stage a massive giveaway to rank well among the top cryptocurrency offers of 2022.
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- Buying Stablecoins
One way to safeguard one’s crypto holdings from market downturns is to exchange a portion of such holdings for sustainable assets.
It seeks to keep the worth of other cryptocurrencies constant by serving as a unifying factor for them. Moreover, since a more reliable core asset secures it, it has lower volatility than other cryptocurrencies.
- Purchasing Bottoms
Hold On for Dear Life, or HODL is a technique that entails holding onto bitcoins for a long time.
To avoid this, impatient investors often hold onto alternative cryptocurrencies until their values rise and trade them in for Bitcoin.
That makes it possible for them to amass even more Bitcoins. However, patience and luck are crucial with this tactic.
5. Don’t Fall Prey to FOMO or FUD
Bitcoin’s value, at any particular moment, is heavily influenced by speculation about future price changes.
We’re all familiar with “FOMO” (fear of missing out). Still, in the cryptocurrency market, the opposing mindset of “FUD” (fear, uncertainty, and doubt) may be just as damaging to rational investment decisions.
However, new cryptocurrency investors often need to fully grasp the factors contributing to this volatility.
The best way to invest is to take the time to educate yourself on the markets, accept the inherent risks, and hold onto your money for the long haul.
Bottom Line
Bitcoin’s price changes for various reasons, including its market’s liquidity, size, and maturity. Depending on your investing approach, this might be a good thing for your investments, such as IMPT, D2T, TARO, RIA or TAMA.
Conduct extensive research before investing in Bitcoin if you want to make the best of cryptocurrency’s volatility.
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