Using a little strategy and some analysis, it may be possible to earn triple-digit cryptocurrency profits in any market
Investors in digital assets see investing as a profitable opportunity because early adopters are retiring millionaires, and newbies are making 300% or more on their cryptocurrency holdings.
Nonetheless, cryptocurrency remains one of the most volatile asset classes, including a high price swing, a low price swing, and a very wide range of price swings. Because of this, new investors typically try to time the market, especially if they have made a few successful trades in the past.
Despite the fact that this thinking is dangerous, it cannot be determined when asset classes will rise or fall, as they do in traditional markets. For example,
There are few people who could have predicted the current market the world is experiencing, making this a prime time to purchase top cap tokens at discount prices from previous all-time highs but now that top cap tokens are facing a significant markdown. The fact that the cryptocurrency market is available 24 hours a day adds to the complexity, making it all the more challenging for new investors. Due to this, it's nearly impossible to time the cryptocurrency market with any level of accuracy, and the very idea is discouraged.
If you are planning to build wealth over the long run, patience and strategy become increasingly important over timing an entry point. As with traditional assets, cryptocurrency prices follow standard cycles and continue to rise over time.
This means long-term investors, especially those who focus primarily on strategy, will gain wealth much more quickly than short-term traders. As the saying goes, timing the market is sometimes less effective than spending time in the market.
Accordingly, investors should move away from luck and toward more responsible investment strategies. Even though crypto trades are available all day, the everyday analysis will produce patterns, and a strategy will minimize risk.
Developing a strategy
An effective trading strategy requires several key principles, including investing only what a trader is willing to lose and avoiding the sway of greed and fear. Most of these efforts are only possible in theory and are best carried out with the aid of a partially or fully automated trading platform.
For example, Users are encouraged to adopt a dollar-cost averaging (DCA) strategy, as it allows them to build their cryptocurrency portfolio while limiting their stress.
This strategy, favored by Warren Buffet, includes varying the cost over a period of time so that payments on an investment are spread out over the long term. By setting a recurring amount, investors can effectively average out the cost of the asset over time, minimizing any impact of paying too much or missing a drop in price in the future. A number of new investment tools aim to simplify this process through automation, allowing users to choose a frequency (hourly, daily, weekly, etc.) and price limit, which the automated platform will execute.
The grid trading strategy follows a similar strategy. Grid trading involves placing orders above and below a set price. Traders can place buy orders averaging $2,000 below the price of Bitcoin (BTC) and sell orders averaging $2,000 above it. When assets fluctuate within that range, an automated program will attempt to buy low and sell high based on these movements.
By using this strategy, investors will not need to time the market and will be able to profit from sideways markets when the price fluctuates within an agreed range.
Mitigating the effects
To help bridge this knowledge gap, Matrixport has released a collection of tools aimed at making cryptocurrency trading easier for beginners. Today, Matrixport is Asia's fastest-growing platform for digital assets financial services, offering users the option to employ buy-below-market (BBM) or sell-above-market (SAM) strategies with its Auto-Invest tool and grid strategy.
Among the first of their kind in the market, BBM and SAM allow users to purchase and sell Bitcoin at a discount or premium, depending on market conditions. These offerings were inspired by traditional wealth management products like accumulators and decumulations and reimagined for cryptocurrency investors. This offers two advantages to investors: It allows them to tame an otherwise volatile market while eliminating human emotion, which triggers panicked reactions when markets dip. However, Traditional models had a minimum requirement of $1 million, but BBM/SAM has lowered that requirement to $100, making the feature more accessible to the average investor.