Maximizing gains and managing risks are fundamental to investing. In the past decades, many investors have opted for safe assets like gold,fixed deposits and real estate to make assured gains. Certain higher-risk investments such as derivatives, managed funds and stocks have become exclusive to those with the financial strength and the expertise to visit such markets. In the post-pandemic era, overcoming inflation with low-value assets is difficult globally. This has led to an Introduction of cryptocurrencies, an asset with huge potential, risk management and accessibility.
Choosing the right time to invest is crucial for those interested in dipping a toe into crypto. Crypto markets are notorious for their volatility, as prices can fluctuate up to 30%. Risk management is both possible and achievable for everyone. As a general rule of thumb, investors should invest a small percentage of their portfolios (to 3%) in cryptocurrencies. Does this does Bitcoin Trader work?
Finding the right time to invest
Building over time wealth
A key aspect of generating wealth is patience, as well as timing your entry. The value of cryptocurrency assets goes through cycles and accumulates over time. A long-term investor is likely to gain wealth more than a short-term trader in the crypto world.
By looking at a coin’s performance, volumes, and other indicators, traders can predict future movements in the coin. Although these indicators are not the main thing, they nonetheless function as a guide. At some point, the market reaches a certain maturity level.
As an example, if a post from an influential person wouldn’t change the momentum of the coin, short trades are mainly harmful. A good strategy is to invest and relax while overlooking the daily patterns.
- Chamisa under fire over US$120K donation
- Mavhunga puts DeMbare into Chibuku quarterfinals
- Pension funds bet on Cabora Bassa oilfields
- Councils defy govt fire tender directive
Keep Reading
Timing the exist
Dollar-Cost Average (DCA) is an effective method for managing entry points. Regardless of the price, DCA is a straightforward investment strategy. Investors following DCA split the pool and buy assets at the regular time. Using the strategy, the volatility rate is reduced as entry is prevented at a price point.
With a 7.8 billion population, about 120 million people invest in cryptocurrency. The adoption rate grows rapidly, but there is room for growth. Today, the cryptocurrency market has less than 2 per cent stock market with a $100 trillion capitalization. So, the majority of investors will probably be satisfied with the price target before entering the market.
Today, the consideration for investing in cryptocurrencies is if they will last for over 5 years. A large market cap coin such as Bitcoin, Ethereum, or Litecoin has a higher existence probability and is therefore considered safe.
In theory, it makes sense to try to buy investments at lower prices and sell them once they reach their peak. It is, however, much more challenging than it sounds. Trading cryptocurrencies can be extremely tricky due to their volatile nature, which makes timing the market even more difficult.
Bottom Line
Price fluctuations in the crypto market have made it nearly impossible to find a good time to buy. There’s a chance they could drop drastically and you’ll have invested too soon if you buy now because it seems like prices have bottomed out. Meanwhile, prices could skyrocket, and you’d miss the opportunity.
