The crypto market has its fans all across the globe. In the last few months, a lot of famous people have made it even more popular by advertising it. The market surely got a lot of visibility with these celebrities vouching for its authenticity.
It led to a lot of people buying cryptos left, right, and center. However, while doing so, they ignored the fact that this market is highly volatile. It doesn’t support anyone in the time of need and if invested heavily without any security at the back, it can make you go homeless!
Re-assessment of the market by the one-time investors
In the last one month, the crash of the market has surely caused a lot of outcries. The prices of bitcoin have moved down from 68000 dollars to 38000 dollars in a single moment! This is surely a record fall that the market has seen in the recent past.
A lot of panics are visible in the market, which has furthermore made a lot of single-time crypto fans skeptical about their investments. They have started assessing the market’s volatility and ability to help them make profits yet again.
The market dip comes with a lot of insecurities. Hence, it is necessary to be on a safer side while investing in the world of crypto. There are some ways through which you, as a new investor in the crypto world, are at a bit safer end.
1. Avoid the shorting strategy
Crypto miners and traders come with a lot of strategies when it comes to playing in the crypto market. One major one is crypto shorting. This is the method in which a trader buys bitcoin, or any altcoin for that matter when the prices are high. Later on, he tends to purchase it back when the prices go low.
This is the time when a lot of traders may be wanting to go for this strategy. They would want to opt for the shorting practice, and it may be an impulsive decision for a lot of them. However, as they think that the market is soon going to be on point zero, they would want to short the market. Nonetheless, this may end up causing them harm rather than providing them anything good.
If you, as a trader, want to buy crypto at this point, you may get some benefits. However, opting for shorting wouldn’t lead you with many benefits, whatsoever!
2. Go for a long-term goal
A long-term rather than a short-term goal is something that will aid you in the future. Though a lot of people still consider it as a digital goldmine, it actually works just like a very regular asset. It offers its own peaks and dips.
Looking at the market and the assets with a long-term goal in the head is the right way to go! The thesis of the longevity of the goals stands true as it has the ability to manage the volatility of the market. Even if you are buying multiple cryptos and managing them with bitcoinup while having a long-term plan in mind, you would be in safe hands!
3. Staking is a must!
As the value of the assets goes down in the bear market, there are great chances of the investors feeling unprotected and vulnerable. They are insecure about their investments and feel like their assets will not give them any considerable output, rather they will lead to a huge loss. This is when staking helps. It leads to bringing some level of stability in investments.
The phenomenon of keeping the coins locked in some time on blockchain in order to make some passive income is referred to as staking. Rather than putting your money in the bank and saving it, you would put them in staking, which will keep it safe and let it grow slowly with time. This way, you can earn a considerable amount of money by the end.
If you choose Finance, you can stake Ethereum on it. Resultantly, you would be able to make a profit of around 5.20% APY. However, Binance is not the only option. There are many others including Coinbase and Kraken, which helps in a great end profit prospect!