How to Deal with Volatility?

[Fondarchand]

Cryptocurrency trading must have Volatility in price and is not shocking for users because they have to deal with it. This volatile market provides profit to its users because if it persist in decline form then it will never have gave any sense of benefit to its users. If you think about stable coins then your lost can be reduces but those who are new in trading does not have any knowledge about anything related to trading so certain strategies should must equipped by the users. Bitcoin has the ability to reduce hour loses so always select coin like Bitcoin.

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[KingsDen]

Diversification: Spread your investments across different cryptocurrencies and assets to minimize the impact of market volatility on your portfolio.

Lol... This is laughable. It looks as it you haven't own portfolio of different crypto assets before. You just read it from online. Was there ever a time that bitcoin will go down in the market and Etheruem and bnb for instance will continue to go up?
Bitcoin is the king and he is the driver of the market. When the king sneezes, the whole market shilvers.
So, if you are talking about diversification, it should be outside the cryptocurrency market and not among altcoins and  shitcoins.

i guess, the OP is just giving a general piece of advise. as you said, it seems he just copied from all the other pointers that are already out there. but then again, if you do want to diversify your portfolio, as you said, look outside the crypto market. consider tangible assets like real-estate, gold and other precious metals and others. also, if you do want to invest other than btc, think of top alts only with rock solid foundation.hard to hold tokens or coins with pump and dump devs. volatility factor won't go away anytime soon, so that's part of this market that you seriously need to think about.

So many newcomers in the cryptocurrency industry who would say they want to diversify are not actually targeting to diversify, they are looking for the coin or any scheme that will double their money and that is why they're falling for scam projects and also run into the pump-and-dump schemes, in the end of the day they complain that cryptocurrency is scam

What we call diversification in cryptocurrency is not actually what it is called,  but it is also better than buying some shit coins only by DCA method

[shinratensei_]

You just deal with it, volatility quite funny enough is the thing that so many people seeking when they investing in cryptocurrency because it could shorten their time of investing if a coin is volatile enough that it could either rise multiple folds or even decrease multiple folds.
The only way you could deal with it is having some kind of strategy since even diversifying won't seem to work since many of cryptocurrencies are always moves in unified movements, therefore you should always watch your investments more specifically the bitcoin trends. then if you want to avoid the volatility altogether after you're done with your investments you should just convert all your investments in stablecoin, that's the reason many favours it because it gives security towards your investment so that you will not worry about it for the long term.

[sulendra12]

Long-term focus: Don't make short-term decisions based on market fluctuations. Instead, focus on your long-term investment strategy and goals.

It just depends on the playstyle that trader choose. People would think volatile market is really good for day-trading and if they can pull that off then it's good for them. Sure long-term is really beneficial in most cases but you can't neglect the fact that day-trading is promising if you know what to do in some situations and conditions.

Stay informed: Stay informed about market trends, regulatory changes, and technological developments that may impact the crypto market.

This one is great since if you follow the trend or updated news for most of the time you could catch up the hype and the train if you careful enough. But be aware for FUD and FOMO because that.

[@sriyan]

To survive in the volatile crypto market, consider the following strategies:

Diversification: Spread your investments across different cryptocurrencies and assets to minimize the impact of market volatility on your portfolio.
Long-term focus: Don't make short-term decisions based on market fluctuations. Instead, focus on your long-term investment strategy and goals.
Risk management: Set stop-loss orders to limit your potential losses and protect your investments.
Stay informed: Stay informed about market trends, regulatory changes, and technological developments that may impact the crypto market.
Don't chase returns: Avoid making impulsive decisions based on news or rumours that promise quick profits.
Seek professional advice: Consult a financial advisor or investment professional to help you navigate the complexities of the crypto market and make informed investment
decisions.

Remember that investing in cryptocurrencies BTC comes with significant risks and it's important to thoroughly research and understand the market before making any investment decisions.
   

I am using the dollar cost average to minimize the volatility.  It is something like you can divide the capital into multiple parts and invest in defined time periods. So you can reduce the average cryptocurrency values. Another main thing following is news regarding crypto to get an idea about the market volatility. When you come to portfolio management, don't put all the eggs in one basket. You can put the eggs in multiple baskets to handle risk and losses.

These are a few things:

1. Doller cost Average
2. Following the News
3. Portfolio management
4. Rebalancing

[lionheart78]

To survive in the volatile crypto market, consider the following strategies:

Diversification: Spread your investments across different cryptocurrencies and assets to minimize the impact of market volatility on your portfolio.

Diversification doesn't mean you need to invest your money in different cryptocurrencies.  Remember the most liquid in the market is Bitcoin, so investing your funds in other cryptocurrencies means making your risk of losing getting higher.  Instead, you can invest your fund out of the cryptocurrency industry.  That is what we called true diversification.  If you can see the picture: one basket is a cryptocurrency, another basket is on stocks, then another one is on gold.  that is what true diversification means to me.

[worle1bm]

The volatility is part of this market so we can't avoid it but we need to handle it like you have to invest in some potential coins like btc with long term in mind which already releif you from volatility tension as you will gain profits in that time period.The second option is to stick with some altcoins that have market liquidity and huge market cap that can help the coin to pump again.The volatility will always be there but you have to manage it accordingly that it won't effect you in bad way.

[stadus]

Nothing can do about this but face it and challenge ourselves to go along with the situation because no matter what we do, the volatility of the market remains. But I don't think that is a problem, in fact, we are indeed grateful to have this volatility for this is the reason that will give us chance to earn more (and lose). But if you are still doubtful about the capability of the market, no matter what you do, negativity is still in your mind which could beat you from moving.

[posi]

Nothing can do about this but face it and challenge ourselves to go along with the situation because no matter what we do, the volatility of the market remains. But I don't think that is a problem, in fact, we are indeed grateful to have this volatility for this is the reason that will give us chance to earn more (and lose). But if you are still doubtful about the capability of the market, no matter what you do, negativity is still in your mind which could beat you from moving.

Yes, let's face it, or rather take advantage of market volatility to our advantage instead of being scared. Most people invest in bitcoin because they like its high volatility, the more volatile the better the chances of making a profit. If bitcoin is not volatile, I would rather invest in the stock market or forex than invest in bitcoin. Bitcoin has risks, so once we invest in bitcoin, we have accepted the risk, so we also need a larger reward, if the risk is high but the reward is low, no one would be foolish to invest.

[LUCKMCFLY]

To survive in the volatile crypto market, consider the following strategies:

Diversification: Spread your investments across different cryptocurrencies and assets to minimize the impact of market volatility on your portfolio.

Diversification doesn't mean you need to invest your money in different cryptocurrencies.  Remember the most liquid in the market is Bitcoin, so investing your funds in other cryptocurrencies means making your risk of losing getting higher.  Instead, you can invest your fund out of the cryptocurrency industry.  That is what we called true diversification.  If you can see the picture: one basket is a cryptocurrency, another basket is on stocks, then another one is on gold.  that is what true diversification means to me.

I would not really diversify my money or my investment in other altcoins, I prefer to put everything in Bitcoin, because we do not know if Bitcoin could have a strong fall, it is not exempt from it, that can happen, however we hope that it will not be like that, Now the only good thing I see about putting money in the altcons is that bitcoin becomes bullish and we have confirmation of such a trend, at that moment it is good to buy Altcoins because I am sure they can jump 2x, 3x, 5x, even more, and this is because I have seen it in the trends that Bitcoin has developed.

[AmoreJaz]

To survive in the volatile crypto market, consider the following strategies:

Diversification: Spread your investments across different cryptocurrencies and assets to minimize the impact of market volatility on your portfolio.

Diversification doesn't mean you need to invest your money in different cryptocurrencies.  Remember the most liquid in the market is Bitcoin, so investing your funds in other cryptocurrencies means making your risk of losing getting higher.  Instead, you can invest your fund out of the cryptocurrency industry.  That is what we called true diversification.  If you can see the picture: one basket is a cryptocurrency, another basket is on stocks, then another one is on gold.  that is what true diversification means to me.

I would not really diversify my money or my investment in other altcoins, I prefer to put everything in Bitcoin, because we do not know if Bitcoin could have a strong fall, it is not exempt from it, that can happen, however we hope that it will not be like that, Now the only good thing I see about putting money in the altcons is that bitcoin becomes bullish and we have confirmation of such a trend, at that moment it is good to buy Altcoins because I am sure they can jump 2x, 3x, 5x, even more, and this is because I have seen it in the trends that Bitcoin has developed.

better yet, diversify your assets not only in bitcoin or crypto, but other assets like real-estate or precious metals. we know that crypto market is a very volatile one up until now. if you have tangible assets, you can still be at peace with yourself if the crypto market crash for a reason. hard to trust alts these days. if you will venture into alts, make sure you are keeping up with their developments, otherwise, don't touch this market.

[LUCKMCFLY]

To survive in the volatile crypto market, consider the following strategies:

Diversification: Spread your investments across different cryptocurrencies and assets to minimize the impact of market volatility on your portfolio.

Diversification doesn't mean you need to invest your money in different cryptocurrencies.  Remember the most liquid in the market is Bitcoin, so investing your funds in other cryptocurrencies means making your risk of losing getting higher.  Instead, you can invest your fund out of the cryptocurrency industry.  That is what we called true diversification.  If you can see the picture: one basket is a cryptocurrency, another basket is on stocks, then another one is on gold.  that is what true diversification means to me.

I would not really diversify my money or my investment in other altcoins, I prefer to put everything in Bitcoin, because we do not know if Bitcoin could have a strong fall, it is not exempt from it, that can happen, however we hope that it will not be like that, Now the only good thing I see about putting money in the altcons is that bitcoin becomes bullish and we have confirmation of such a trend, at that moment it is good to buy Altcoins because I am sure they can jump 2x, 3x, 5x, even more, and this is because I have seen it in the trends that Bitcoin has developed.

better yet, diversify your assets not only in bitcoin or crypto, but other assets like real-estate or precious metals. we know that crypto market is a very volatile one up until now. if you have tangible assets, you can still be at peace with yourself if the crypto market crash for a reason. hard to trust alts these days. if you will venture into alts, make sure you are keeping up with their developments, otherwise, don't touch this market.

Actually, I think we all always have a fresh start every day, because in trading you learn every day. I am a person who likes to read many books about trading, about the stock market, about any speculative market because I know that all the information that can be extracted from there is very applicable now.

In some books they always recommend diversifying your money, just as you say, I think that one of the best things that can be done is to diversify into Real Estate, Gold, and why not, have some Fiat money for any emergency, even sometimes even in any business you can put a part of the money.

[michellee]

better yet, diversify your assets not only in bitcoin or crypto, but other assets like real-estate or precious metals. we know that crypto market is a very volatile one up until now. if you have tangible assets, you can still be at peace with yourself if the crypto market crash for a reason. hard to trust alts these days. if you will venture into alts, make sure you are keeping up with their developments, otherwise, don't touch this market.

Precisely with the fluctuation of the crypto market, it can provide an opportunity for us to benefit from many coins. It will not be as easy as we imagine because we have to analyze each coin that we want to use as a trade. And this is the appeal of altcoins that can make many traders still use altcoins as a way to make a profit. But many of them cannot even benefit because of wrong analysis. To make peace with volatility, we must learn more than others to find loopholes that we can use to buy at low prices and sell at high prices.

Maybe investing in the things you mentioned can help diversify their assets but usually, it will require a large amount of capital. So the crypto market can be an option to diversify assets but don't be afraid of the volatility because crypto market movements may be more extreme than other markets.

[rozak]

better yet, diversify your assets not only in bitcoin or crypto, but other assets like real-estate or precious metals. we know that crypto market is a very volatile one up until now. if you have tangible assets, you can still be at peace with yourself if the crypto market crash for a reason. hard to trust alts these days. if you will venture into alts, make sure you are keeping up with their developments, otherwise, don't touch this market.

Precisely with the fluctuation of the crypto market, it can provide an opportunity for us to benefit from many coins. It will not be as easy as we imagine because we have to analyze each coin that we want to use as a trade. And this is the appeal of altcoins that can make many traders still use altcoins as a way to make a profit. But many of them cannot even benefit because of wrong analysis. To make peace with volatility, we must learn more than others to find loopholes that we can use to buy at low prices and sell at high prices.

Maybe investing in the things you mentioned can help diversify their assets but usually, it will require a large amount of capital. So the crypto market can be an option to diversify assets but don't be afraid of the volatility because crypto market movements may be more extreme than other markets.

All of course requires stages to achieve it all. For beginners market fluctuations are clearly worrying, even making panic novice traders. For those who are used to it, as you say, it will make it easier for them.
Beginners must pay gradually, focus on some of the assets traded and they can analyze how the market characters of some altcoin assets will be different. And everything requires a different analysis. Those who want to learn can definitely control their emotions. And that will provide valuable lessons.

[Davidvictorson]

Stay informed: Stay informed about market trends, regulatory changes, and technological developments that may impact the crypto market.

By now, both traders and non-traders alike are familiar with the volatility in the crypto ecosystem and have either developed their own system for dealing with it or just followed the systems already in place in the public space. As a trader, I have my own ways of dealing with it. The first thing I do every morning, which is something I learned from my trading mentor, is to read the news. I have read everything that relates to the cryptocurrency market. It would be a shame if I was ever caught off guard. Having the latest information at hand helps me stay focused and guides my trading during the day.

The second thing I do follows from the first. Based on the news information, I may rewrite it, modify it, or just stick with it. My plan is robust, and I do not joke with my risk management contingencies. It is not always perfect but it leaves only 5% -10% margin for error. I have many more ways I deal with volatility but then these are the two most important.

[tvplus006]

better yet, diversify your assets not only in bitcoin or crypto, but other assets like real-estate or precious metals...

Not every forum participant can afford such diversification, since for this you need to have a lot of capital that will allow you to invest money in real estate, gold and cryptocurrency at the same time. Nevertheless, if you have achieved success in crypto, you need to invest some of the money in the real sector of the economy.

[Taskford]

better yet, diversify your assets not only in bitcoin or crypto, but other assets like real-estate or precious metals...

Not every forum participant can afford such diversification, since for this you need to have a lot of capital that will allow you to invest money in real estate, gold and cryptocurrency at the same time. Nevertheless, if you have achieved success in crypto, you need to invest some of the money in the real sector of the economy.

Everyone could start with a chunk and later in if they are successful then they think about investing on other alternative option since this is the best thing to do. Since trusting only on altcoins might put you at risk because we know sometimes its volatility is so traitor and we could lose all we have in short period of time.

To deal with volatility well maybe the least thing we can do is always not to expect to much with more huge pump because once we look for more and never secured the possible profit we already achieve then maybe we will hit back by the dump and somehow we go on losing stage.

[kamvreto]

better yet, diversify your assets not only in bitcoin or crypto, but other assets like real-estate or precious metals...

Not every forum participant can afford such diversification, since for this you need to have a lot of capital that will allow you to invest money in real estate, gold and cryptocurrency at the same time. Nevertheless, if you have achieved success in crypto, you need to invest some of the money in the real sector of the economy.

Everyone could start with a chunk and later in if they are successful then they think about investing on other alternative option since this is the best thing to do. Since trusting only on altcoins might put you at risk because we know sometimes its volatility is so traitor and we could lose all we have in short period of time.

An alternative option means diversifying the investment to be made. To choose altcoins, it is better to use altcoins that are already highly ranked, don't choose high-risk altcoins that will be lost and abandoned. even the top altcoins are not a guarantee of success either. Altcoins do have higher volatility because there are many influences that will make the price very unstable, but by doing the right management and entering at the right price, the profit will be bigger.

To deal with volatility well maybe the least thing we can do is always not to expect to much with more huge pump because once we look for more and never secured the possible profit we already achieve then maybe we will hit back by the dump and somehow we go on losing stage.

The big pump only happens instantly and it will also be accompanied by a big dump. instead of hoping for a big pump, it is better to focus on accumulating profits for the long term, and that would be a good strategy. Expecting fast profits, you must also be prepared for fast losses.

[Oilacris]

better yet, diversify your assets not only in bitcoin or crypto, but other assets like real-estate or precious metals...

Not every forum participant can afford such diversification, since for this you need to have a lot of capital that will allow you to invest money in real estate, gold and cryptocurrency at the same time. Nevertheless, if you have achieved success in crypto, you need to invest some of the money in the real sector of the economy.

You are right and this is why not all would really be having that chances on diversifying out because of lack of funds or not really that financially capabled or had already put up into various
investment but we do know about that diversification is always been best, its not necessary on getting on all in but having several ones would really be that recommendable.

Speaking about volatility handling then it would really be depending into you on how you would really be dealing off with.Just make sure that you are fully aware
on what are the opportunities that it could really give and also the risks that it is really that involved.

[virasisog]

better yet, diversify your assets not only in bitcoin or crypto, but other assets like real-estate or precious metals...

Not every forum participant can afford such diversification, since for this you need to have a lot of capital that will allow you to invest money in real estate, gold and cryptocurrency at the same time. Nevertheless, if you have achieved success in crypto, you need to invest some of the money in the real sector of the economy.

You are right and this is why not all would really be having that chances on diversifying out because of lack of funds or not really that financially capabled or had already put up into various
investment but we do know about that diversification is always been best, its not necessary on getting on all in but having several ones would really be that recommendable.

Speaking about volatility handling then it would really be depending into you on how you would really be dealing off with.Just make sure that you are fully aware
on what are the opportunities that it could really give and also the risks that it is really that involved.

Volatility is uncontrollable so we have no choice but to deal with it with grace. It all depends on our purpose and our target goal. If we are focusing on long-term investment, we should just observe the market as well as the movement of our holdings but if we know their capability, better be patient and wait for the best peak to sell. It might sound as easy as others think but it is a big challenge to us emotionally. As for me, if we already know how the market moves previously, we shouldn't feel bothered by every price drop of our coins but instead, take them as an opportunity either to buy or sell.