With the speed at which cryptocurrency is booming, it is undoubtedly poised to become the dominant technology of the future.
Hundreds of thousands of investors are pouring money into crypto and making millions in return – an overnight rich-making opportunity as touted by many.
Carl Runefelt is one prominent example. Barely a couple of years ago, he was stuck in a nine-to-five supermarket cashier job; he was hardly making ends meet.
Today, he is a multi-millionaire with a lifestyle that many envies. He travels around the world in his private jet and roams the streets of Dubai in his dream car, Bugatti.
While speaking on his YouTube channel, The Moon, he says, “I am very confident that crypto is an excellent investment. I believe that Bitcoin is not only going to go to $500,000, I think that Bitcoin is gonna go to five million dollars per Bitcoin in today’s money. Obviously, with inflation, Bitcoin could go to trillions of dollars per Bitcoin. Actually, it will because it is inevitable, but because the dollar will collapse at some point.
But here is the thing: the ghost of volatility haunts crypto!
Ever since its inception, unpredictable market volatility has accompanied cryptocurrencies.
And it is one of the factors that are a hindrance to the global acceptance of crypto. Individual investors often are wary of investing in crypto for the same concern.
How to Cash on the Market Volatility
Although investors are often hesitant to invest in crypto due to the erratic volatility of crypto, some investors consider this an opportunity to make money.
Carl Runefelt explains, “Bitcoin and for all coins, I like to accumulate at lower levels. So, right now, when everything is silent and chilled and going down, I am happily accumulating in peace. Every single altcoin out there has been going down like crazy in the last three months, and in my opinion, that is a fantastic opportunity to pick up some cheap prices because, in the next bull run, you will be the winner if you bought when everyone else was not buying.”
The trick is pretty simple. Once the crypto value plunges – as the contemporary crypto winter has crashed the prices – you can buy the dip and hold your coins.
When the prices go up – which they always have – this is your time to make exponential profits by selling your digital currency.
But still, if constant market volatility scares you, look at some ways you can brave the volatility storm.
How to Mitigate Crypto Volatility
You plan everything right, invest your hard-earned savings, and the next thing you know, the crypto market has miserably crashed – well, that’s the way cookie crumbles.
But there are ways to get behind the wheels to minimize the loss – better yet, make profits!
Emotions portend loss:
When it comes to crypto trading, being driven by emotions is a recipe for huge losses. Always take your time to make the decisions rationally. Don’t get carried away with stories of people making millions overnight. However, it’s true but infrequent.
Get hold of your emotions and invest the amount you can afford to lose. Don’t just pour in all your savings. Remember, the crypto market is fraught with volatility; you do not want to get insolvent by becoming the victim of volatility.
Carl Runefelt emphasizes, “You should avoid being emotional when trading cryptocurrencies as you can go for panic buying.”
Don’t put all your eggs in one basket:
Well, the heading is pretty self-explanatory but let us lay some details. Investing in multiple cryptocurrencies is considered an intelligent approach rather than just buying single crypto.
Primarily invest in Bitcoin, followed by some altcoins, and not to forget some stablecoins. This is called the diversification of your crypto portfolio.
If the crypto market suddenly nosedives, you can minimize your losses because some cryptocurrencies crash more than others. For instance, due to the recent crypto crash, Ethereum has fared well as compared to other currencies that plunged.
Managing your money:
This tip should have taken the first place due to its significance. It would be best if you strived to manage your money astutely. As discussed earlier, never invest hefty sums into crypto, lest the market volatility harms your capital investment.
Invest modestly; Carl Runefelt advises that if you have a job, invest a few hundred dollars monthly from your salary. Be careful not to put in a considerable amount.
Crypto Volatility Won’t Stay Forever
As more and more companies and businesses embrace crypto, the global acceptance of digital currency will massively boost.
Time is on the horizon when crypto transactions will become a norm – a global financial transformation.
Once this happens, cryptocurrency will become stable and won’t experience any more volatility.
May seem impossible now, but it will; because the future is all crypto!