Can you protect your Bitcoin from market volatility?

[taufik123]

High volatility has become a characteristic of bitcoin and is indeed very risky. no one will be able to protect the bitcoins owned from the volatility that occurs. many factors cause bitcoin volatility, negative sentiment that often occurs causes bitcoin prices to tend to be unstable and forced to continue to fall, besides bitcoin volatility is also caused by a limited supply of bitcoin with increasing demand.
experts say volatility was not always as bad as it is today. Bitcoin is no longer dominated by retail investors. Investment managers and financial firms in the United States (US) have flooded the crypto market in the past year.

[sunsilk]

Market volatile is already natural. I think no matter what happen to our bitcoin as long we not sell it then we not lose it. And honestly i think we don't need to protect our bitcoin from market volatily. Because without that, how we can made profit when in other side a lot of people want to buy bitcoin to gain profit.

It's just a suggestion and if you think that you're fine dealing with its market's volatility then you're good to hold for long term. Usually, the newbies cannot bear the volatility that bitcoin has.

They're making themselves put into negative thinking that it's not good to see bitcoin fluctuate because they're only thinking of the profit. Who doesn't think of the profit? all of us are but there's a process that everyone has to go through after investing to bitcoin.

[DoublerHunter]

Why, my thinking is the opposite.  Volatility is bitcoin's biggest draw compared to the rest.  Everything revolves around bitcoin.  Volatility creates a great return on investment.  If bitcoin loses its inherent volatility, risk, I would rather go with gold or forex.  Lol, practice risk management and increase your reserves somehow.  Don't look at the dollar value in the basket of assets it will lead us astray.

^ That it is, the word volatility of BTC is the perfect way of making a profit, and this is what we get profit through volatility, if you don't want this, why not invest in gold and other stock that does not have volatility. The nature of BTC is to have a volatility price and most commonly it is an unpredictable price. So there is no way that you can protect your asset not unless if you decided to sell while at a lower price it means you accept blindly your losses. Somehow, the OP was right, all those said were right, there should be proper asset management and I believed as long as you don't take action and selling them, there is no loss that will happen.

[Woodie]

Good write up OP but what I see here just makes you more knowledgeable about the crypto ecosystem and kind of opens up your mind to what crypto can throw at you, and possibly makes you smarter on how you make your cryptoinvestments..
But lets talk facts, I don't think there is a way to protect yourself from market volatility if you own some bitcoin or crypto. This phenomenon  affects everyone of us and the second you choose to get into cryptocurrency that fence that you had protecting you from crypto is demolished.

[jakdanyel]

To be honest, I also don't think that anybody can protect themselves from the market volatility fully. Because nobody can know when the price will dump or skyrocket. There is no sign for it. Some people believe in some positive or negative news about Bitcoin to affect the price. But it's not the situation anymore. Bitcoin is stronger than before. So, you can be careful until some point but after that it is about luck.

[nelson4lov]

Maybe you can't protect your coins from market volatility but you can have them under control as much as possible. And the tips you have shared would be beneficial for people. Experienced investors know what to do better than inexperienced ones. But people who have no idea should do a detailed research before starting to invest into any cryptocurrency. Thanks to this, they can also follow the market closely.

Yeah, that's what differentiates experienced traders from those who are just starting their trading career or people with very little experience. It's the fact that, they put in the work to ensure that their trading and investment activities don't go to waste no matter the level of risks involved. One of the biggest mistakes I've seen people make especially beginners is that, they tend to skip steps when they want to start investing or trading the crypto markets. They just think that the process of doing sufficient research and due diligence is time consuming and not too important or necessary but in hindsight, it is.

[verita1]

For the active trader and thinking about avoiding the volatility of bitcoin, it could be the case of using the pair of stablecoins.
But bitcoin has many types of holders, there are investors who think about investing for a long time. This type of investor is the one who does not sell bitcoin, on the contrary, he buys more when the price is low.
In this case, volatility is favorable because it invites you to buy.
If you don't sell your bitcoin you don't lose, is another thought.

[gabbie2010]

To be honest, I also don't think that anybody can protect themselves from the market volatility fully. Because nobody can know when the price will dump or skyrocket. There is no sign for it. Some people believe in some positive or negative news about Bitcoin to affect the price. But it's not the situation anymore. Bitcoin is stronger than before. So, you can be careful until some point but after that it is about luck.

The only option to protect investors and hodlers from market volatility is to exchange their cryptocurrencies to a stable coin like USDT and BUSD however those coins would have been in exchange wallet which is not advisable, although long term hodlers might not necessarily have a feeling of price volatility, we are all aware of hacking of exchanges, on the other hand market volatility is an important and crucial tool for traders to earn profits consistently however it can equally rekt or liquidate many trader portfolio especially the inexperienced or those trading with high leverages

[JerryKin]

Why do you want to protect yourself from the inevitable. The volatility of Bitcoin is one of it's major peculiarities. If you want something stable and steady, bitcoin might not be the best option for you. The volatility has actually made alot of people wealthy at the same time  many became poor depending on what direction the market went.

In my opinion, You can only wisely manage your Bitcoin by knowing the perfect time for you to trade or when not to.

[Silberman]

Why, my thinking is the opposite.  Volatility is bitcoin's biggest draw compared to the rest.  Everything revolves around bitcoin.  Volatility creates a great return on investment.  If bitcoin loses its inherent volatility, risk, I would rather go with gold or forex.  Lol, practice risk management and increase your reserves somehow.  Don't look at the dollar value in the basket of assets it will lead us astray.

^ That it is, the word volatility of BTC is the perfect way of making a profit, and this is what we get profit through volatility, if you don't want this, why not invest in gold and other stock that does not have volatility. The nature of BTC is to have a volatility price and most commonly it is an unpredictable price. So there is no way that you can protect your asset not unless if you decided to sell while at a lower price it means you accept blindly your losses. Somehow, the OP was right, all those said were right, there should be proper asset management and I believed as long as you don't take action and selling them, there is no loss that will happen.

This is what a lot of people really do not get, the volatility of bitcoin can play against you if you do not know what you're doing but it can play in your favor if you do, which is why speculators love this market as bitcoin can present very extreme movements that you cannot usually see on the stock market, now that doesn't mean that I do not understand why this can be problematic for newbies but if they cannot deal with the volatility then it is better that they move to other markets before they come to this one.

[tabas]

Why do you want to protect yourself from the inevitable. The volatility of Bitcoin is one of it's major peculiarities. If you want something stable and steady, bitcoin might not be the best option for you. The volatility has actually made alot of people wealthy at the same time  many became poor depending on what direction the market went.

In my opinion, You can only wisely manage your Bitcoin by knowing the perfect time for you to trade or when not to.

It's just a question on the title but OP has given certain points and advises on what we should for you to become at least knowledge in the market.
It is true that volatility is inevitable and that's why you need to be informed especially the newbies that are just buying bitcoin without knowing those points.

[GeorgeJohn]

Why do you want to protect yourself from the inevitable. The volatility of Bitcoin is one of it's major peculiarities. If you want something stable and steady, bitcoin might not be the best option for you. The volatility has actually made alot of people wealthy at the same time  many became poor depending on what direction the market went.

In my opinion, You can only wisely manage your Bitcoin by knowing the perfect time for you to trade or when not to.

Yes course you can protect your bitcoin, it's obvious that bitcoin two impact or two step to adventure into, which are positive or negative, which i may likely classify as advantages and disadvantages, both the (positive and advantage )whereby you make a profit in cryptocurrency and (negative and disadvantages) are the process whereby you lose as you said, but to protect your BTC is a process know when will you sell and when to buy in order to make a profit.

[u/isoeaera]

Bitcoin, unlike fiat, intrinsically volatile. Reason? it is limited in supply, no wonder it is called the digital Gold.To avoid massive losses, if  you are averse, consider investing in stablecoins.Also, if you are always watching the market, you can use a variety of exchangers to buy and sell your BTC to stablecoins whenever you feel jittery.For instance, if you use https://www.bestchange.com/, you can access several exchangers tat will give you the best rates in the market.

[Gyfts]

If you're a day trader and that is thing, then I guess dumping into a stable coin would be the way, but it's a bit foolish to try and predict the crypto market, long term holding will guarantee a ROI if you just want to make money, and ideally, the market volatility isn't something to worry about as wider adoption would prevent large swings in the price.

[Quidat]

Why do you want to protect yourself from the inevitable. The volatility of Bitcoin is one of it's major peculiarities. If you want something stable and steady, bitcoin might not be the best option for you. The volatility has actually made alot of people wealthy at the same time  many became poor depending on what direction the market went.

In my opinion, You can only wisely manage your Bitcoin by knowing the perfect time for you to trade or when not to.

Yes course you can protect your bitcoin, it's obvious that bitcoin two impact or two step to adventure into, which are positive or negative, which i may likely classify as advantages and disadvantages, both the (positive and advantage )whereby you make a profit in cryptocurrency and (negative and disadvantages) are the process whereby you lose as you said, but to protect your BTC is a process know when will you sell and when to buy in order to make a profit.

Due to unpredictability of the market then this is something hard that you cant really able to avoid but of course as a trader then it is something a challenge for you to withstand this volatility
and make yourself sustainable despite of the current condition of the market. Yes its true that this is having its pros and cons and thats the reason on why we are here but if you dont like
volatility then this market isnt really for you and find another one which is less volatile or find on your own preference.

[TinaK]

Why, my thinking is the opposite.  Volatility is bitcoin's biggest draw compared to the rest.  Everything revolves around bitcoin.  Volatility creates a great return on investment.  If bitcoin loses its inherent volatility, risk, I would rather go with gold or forex.  Lol, practice risk management and increase your reserves somehow.  Don't look at the dollar value in the basket of assets it will lead us astray.

^ That it is, the word volatility of BTC is the perfect way of making a profit, and this is what we get profit through volatility, if you don't want this, why not invest in gold and other stock that does not have volatility. The nature of BTC is to have a volatility price and most commonly it is an unpredictable price. So there is no way that you can protect your asset not unless if you decided to sell while at a lower price it means you accept blindly your losses. Somehow, the OP was right, all those said were right, there should be proper asset management and I believed as long as you don't take action and selling them, there is no loss that will happen.

You are right, there is proper management of our investment that can protect it from possible loss.
When there is a market crash you can hold your bitcoin and never sell it, this is how can you protect it from the volatility and many people do panic selling when they saw that the market had crashed. I think if we invested in cryptocurrency we know already this, the volatility and the risk on it, that is why only invest that you can afford to lose because that money is you can wait whatever happens to the market and also aiming a target profit will also help you to protect your asset.

[Kaylana]

Because individuals are at a disadvantage in the stock of capital, information and investment knowledge, short-term investment and frequent operation are difficult to make profits. The safest way is to hold it for a long time, eat a cycle of dividends and operate it once a year or half a year.

[glendall]

protect bitcoin from market volatility in a short way for me to change to sabelcoin coins so as not to lose too much in the event of a price drop
but there is a problem that cannot be avoided, from bitcoin trading which is clearly visible, among others, by the existence of a long-term holding plan
in my commitment to trading bitcoin not greedy and always grateful for the profits given in 1 day
.

[Pulsar77]

Thank you for your tips but it is obvious that it is really hard for someone to protect their coins from the market volatility. Because we can't understand what Bitcoin will do exactly and when. We can just make our own analyses and abide by them. If we are lucky also, we can save our coins from a big dump and increase their value also. It is not depending on only ourselves in the end, we need some luck to gain good amount of money in this market also.

[ChiBitCTy]

This is a pretty good write up.  You can't fully protect your bitcoin from market volatility without actually pulling your bitcoin out of the markets, which is not the same thing as "protecting your bitcoin" because if you pull out, then you're not longer in bitcoin, you're realizing a gain or a loss, and you could miss out on potential upside.  The moral of the story is to just make sure you have a well diversified participant.