Many believe, cryptocurrency is here to stay, but for many who are interested in entering the cryptocurrency space, market volatility is still a concern. Knowing how to protect your investment during fluctuations is vital.
Let’s take a deeper look into a few strategies you can easily employ to ensure your digital currency is performing the way you want it to.
Convert Between Fiat and Crypto Currency
One way to avoid market fluctuation issues is to convert your cryptocurrency to a fiat currency. This essentially secures your money from any big dips. It will be held safely in your exchange wallet for later use, or when you’re ready to move back into crypto.
Minimal transaction fees and the ability to move your digital currency around as you please are important elements. To truly protect yourself against market fluctuations, you need to choose a cryptocurrency platform that’s includes:
- Transparent transaction fees and policies
- A strong industry reputation
- Security (preferably no past hacks)
- High volume of digital currency up for grabs
- Accuracy in pricing
You ultimately want a crypto-platform with a robust list of digital tokens and fiat currencies for you to work with. This will allow you to diversify your cryptocurrency portfolio while keeping control of your holdings.
Uphold.com, one of the top digital wallets, allows users to quickly move their money around between 30 plus cryptocurrency and fiat currency choices. Transaction fees are also lower than normal exchange rates with complete transparency.
Start Thinking Long-Term
Many experienced cryptocurrency holders suggest purchasing digital currency with a long-term goal in mind. You should also only use money you can afford to lose, like buying digital currency with credit cards.
“Never invest more than you are willing/able to lose – Bitcoin is a very risky investment and you should keep in that in mind at all times,” Ofir Beigel of 99Bitcoins suggested.
When it comes to cryptocurrency, short-term market analysis is almost impossible. This makes long-term thinking a valuable way to protect yourself against market fluctuations. You are not watching the market daily, but looking years down the road.
Wrapping Up . . .
The ups and downs in the market will inevitably continue until mainstream adoption. These strategies to protect yourself from cryptocurrency market fluctuations are a great place to begin. They are also easy to implement for any crypto-holder level. Are you taking steps to stay profitable?
TheBitcoinNews.com – Bitcoin News source since June 2011 –
Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to consumer protections. TheBitcoinNews.com holds several Cryptocurrencies, and this information does NOT constitute investment advice or an offer to invest.
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