Investing is the practice of acquiring an asset with the hope of making a profit through later resale. Unfortunately, price of cryptocurrency and other digital assets are highly volatile.
When Bitcoin first became available to the general public in 2009, a token cost just a few cents. However, since then there has been a dramatic jump in price, often hundreds of dollars in a matter of days.
These changes in value can be very profitable for investors. However, they carry the risk of significant losses, especially for novice traders who may struggle to keep up with the rapid ups and downs of the market.
This article will discuss the meaning of volatility in the cryptocurrency industry, the reasons for the volatility of bitcoin, other cryptocurrencies. IMPT, D2T, TAROT, RIA, TAMA and the top five strategies to take advantage of these factors.
What does volatility mean?
Word “variability” refers to the rapid price changes that can occur in the value of any investment (not just cryptocurrency).
It is not unusual for daily cryptocurrency value to fluctuate by up to 15% either way. Additionally, due to the volatile nature of cryptocurrencies like Bitcoin, its value may either increase or decrease over a period of time.
What makes Bitcoin so volatile?
The cryptocurrency market can be compared to the stock market because real-world events often have a significant impact on the value of various cryptocurrencies.
The market price of Bitcoin, like other investments, stocks and commodities, is largely dependent on supply and demand. This means the number of coins in circulation and the price buyers are willing to pay for them.
Since there is a cap of 21 million coins, prices are expected to increase if the amount of coins in circulation approaches that cap.
However, these developments have only a marginal impact on Bitcoin. First, Bitcoin’s vulnerability to various influences may relate to other fundamental elements with more significant influence.
How to benefit from BTC volatility
Now that Bitcoin looks poised for a breakthrough, investors and traders may be asking how best to take advantage of the upcoming volatility.
There are many other methods that traders can use, but here are five that are available to the vast majority of bitcoin owners:
- Confirm Increased Volatility
Volatility futuresIt is a relatively risk-free option to profit from a breakout, rising in value when the market fluctuates and decreasing in value when it declines.
Contracts for volatility are new to the bitcoin market, and so far FTX is the only reputable exchange that provides them. Through various futures, traders can also intentionally create a stake in volatility.
- Increase portfolio diversity
Investing too much money in a single cryptocurrency is a bad idea, and prudent traders know this. Therefore, they spread their existence among different coins and tokens.
It is very important to diversify your portfolio across different assets including stocks and shares, digital currencies and other investments.
Due to the highly volatile nature of the cryptocurrency market, investors should only invest their money in the largest coins by market capitalization and most importantly, those with the highest potential, e.g. IMPT, D2T, TAROT, RIAand TAMA. Let’s take a closer look at what makes these cryptocurrencies special.
Dash 2 Trading is a new cryptocurrency analytics platform that simplifies and improves the trading experience for cryptocurrency enthusiasts.
For this purpose, it is possible to use the state-of-the-art Dash 2 Trade dashboard in developing and evaluating cryptocurrency market strategies.
In addition to trading, it can be used to track the state of the cryptocurrency market and draw conclusions about where prices are headed.
In addition, the website provides information on the economic and technological aspects of several digital currencies.
Users can compete for prizes in the D2T forecast competition by submitting in-depth market forecasts. By integrating with social media platforms like Reddit and Twitter, users can use the app’s social trading capabilities to stay abreast of major market changes.
The Dash 2 Pre-Trade sale is coming to an end, so if you want to invest at the best possible price, you’d be wise to hurry.
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In a very short time, RobotEra gathered a large number of users in its metaverse 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 of his own ideas with his fellow robots.
Therefore, RobotEra provides an unprecedented way of entertainment while also giving you a chance to win in various ways. But to do this, of course, you need TARO coin. Its presale is still going on, so you can get it for a great price!
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If you’re looking for the best cryptocurrency stock in the green energy industry, look no further than IMPT. Fantastic news though IMPT‘s novelty, the presale is already scheduled to end much earlier than expected.
Built on the powerful Polygon blockchain, it ensures its long-term viability and stability. IMPT’s main objective is to facilitate the purchase and trading of carbon credits, which are essential in the fight against climate change.
Carbon credits are equivalent to permits that allow the holder to release a certain amount of carbon dioxide into the air. The global community’s common goal of creating a more sustainable environment means that carbon credits will eventually be used in a variety of contexts.
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IMPT’s IEO on Uniswap for December 14th
The IMPT coin presale will last for just a few days and the first crypto listings have already been announced. IMPT will be listed on Uniswap, LBank and Changelly Pro from mid-December now, so hurry up and invest in this coin, you can still get it at the pre-sale price! Very soon the price of IMPT coins will be higher.
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Inspired by the free-to-play MMORPG of the same name, Calvaria: Eternity serves as a base for Duels. Calvary blockchain ecosystem. This is a card game inspired by Mexican mythology, and the numbers on each card are different.
In tournaments, participants use their skills and tactics to earn upgrades and rewards for themselves and their characters, each with unique attributes.
In-game money, RIA, is the backbone of the game’s economy. In-game resources can be obtained by playing the game or investing 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 within the game.
Web 3.0 blockchain technology and Web 2.0 games are perfectly combined in an innovative blockchain ecosystem known as RIA.
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With cryptocurrencies outperforming the stock market over previous years, TamadogOne of the top 300 digital currencies by market size, it could become one of the most prominent projects in crypto assets. Tamadoge, the meme currency, sets it apart from the pack because owners can expect both stable value and significant profit growth in the future.
Besides TAMA badgeTamaverse will also include mint NFT Pets that can be obtained by participating in the new game.
Pets will be available in virtual reality by the end of the third quarter of 2023, allowing players to take their pets into the real world in pursuit of TAMA tokens and bonuses. They are scheduled to get full 3D by 2023.
After a successful sale and proceeding to the next round, Tamadoge will present a great gift to rank well among the best cryptocurrency offers of 2022.
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- Buying Stabilcoins
One way to protect your cryptocurrencies from market downturns is to exchange some of your holdings for stable assets.
It tries to keep their value stable by serving as a unifying factor for other cryptocurrencies. Moreover, it has less volatility than other cryptocurrencies because of the more secure underlying asset backing it.
- Purchase of subs
Hold On for Dear Life, or HODL, is a technique that involves holding bitcoins for a long period of time.
To avoid this, impatient investors often hold alternative cryptocurrencies until their value rises and trade them for Bitcoin.
This allows them to collect more Bitcoins. But patience and luck are very important in this tactic.
5. Don’t get caught up in FOMO or FUD
Bitcoin’s value, at any given moment, is heavily influenced by speculation about future price changes.
We are all familiar with “FOMO” (fear of missing out). Still, the contrarian mindset of “FUD” (fear, uncertainty, and doubt) in the cryptocurrency market can be just as damaging to rational investment decisions.
However, new cryptocurrency investors need to fully understand the factors that often contribute to this volatility.
The best way to invest is to educate yourself on the markets, accept the inherent risks and take the time to hold your money for the long term.
Bottom line
The price of Bitcoin fluctuates for a variety of reasons, including market liquidity, size, and maturity. Depending on your investment approach, this could be a good thing for your investments, e.g IMPT, D2T, TAROT, RIA or TAMA.
If you want to make the most of cryptocurrency volatility, do extensive research before investing in Bitcoin.