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Are you new to cryptocurrency trading? Here are five pointers to help you get off to a good start in 2022.
Trading stocks and cryptocurrencies might be difficult, but here are a few pointers to get you started.
It makes no difference how experienced you are at trading because there is nothing that can be done to safeguard a person from the power of cryptocurrencies’ price fluctuations. Bitcoin’s (BTC) volatility, which is the standard metric for daily changes, is currently 64 percent annualized. In comparison, the S&P 500 has a volatility spec of 17 percent, while WTI crude oil has a volatility spec of 54 percent.
However, by following five simple guidelines, it is easy to prevent the psychological impact of an unexpected 25% intraday price movement. Fortunately, these strategies do not need the use of sophisticated equipment or big quantities of money in order to be effective during periods of extreme volatility.
Plan on not withdrawing money in less than two years.
Assume you have $5,000 to invest, but there’s a fair chance you’ll need at least $2,000 of that in the next 12 months for vacation, automobile repair, or some other job.
The worst thing you can do is make a 100 percent allocation to cryptocurrency since you may need to…
