Crypto Crash: How to Survive the Crypto Crash
There has been a lot of buzz about cryptocurrencies lately. With the market fluctuating, many people are wondering how to survive the crypto crash. No wonder, with all the talk of it being a bubble or a fraud - if it’s not in your best interests, why invest? This article will give you some tips on what you can do to minimize losses during this volatile time in crypto investing.
The crypto market is unpredictable and prone to bubbles. An easy way to prepare for the crypto crash is to diversify your portfolio by investing in different cryptocurrencies. There are several types of cryptocurrencies that can help protect you from drastic drops in the market like Ethereum, Ripple, and NEO. We recommend purchasing a mix of these three when you first start trading cryptocurrency so they don’t get too much attention and make your investment go down with them.
Why is the crypto market so volatile?
Cryptocurrency is a type of digital currency that runs on blockchain technology. The blockchain technology is an important part of cryptocurrencies because it makes them safe and easy to use.
But the truth is, there’s no guarantee that cryptocurrencies will continue to rise in value. In fact, this could lead to a fall like the one that happened in 2017 when Bitcoin dropped by more than 70 percent from its high value at the end of December 2016. A dramatic drop like that would be bad for your portfolio as you won't get all the gains you were expecting from cryptocurrency investment.
The good news is that investing in cryptocurrencies does not have to be risky! Some experts recommend diversifying your portfolio by investing in different types of currencies, but we recommend a more conservative approach by choosing just one type of cryptocurrency: Bitcoin or Ethereum. This will make sure you can easily access your money if anything unexpected happens with other cryptocurrencies.
How to get started in trading cryptocurrency
Cryptocurrency trading is fairly easy and straightforward if you know what to do. Here are the steps to getting started.
You can trade cryptocurrency through an exchange like Uphold , or directly on your favorite cryptocurrency website like coinmarketcap.com.
Decide if you want to buy a certain amount of cryptocurrencies at once, or smaller amounts of them over time.
If you're interested in learning more about trading cryptocurrencies, we recommend investing in a good book like Crypto Investing for Beginners: A Step-by-Step Guide for Trading Cryptocurrencies by Andreas Antonopoulos . It's written in easy-to-understand language so that anyone can get started with trading cryptocurrencies.
Diversify your portfolio
If you see a drop in your portfolio, it’s important that you diversify your portfolio. There are many cryptocurrencies out there and some are doing well while others are not. Diversifying is also important because some cryptocurrencies have a similar value to each other. If you invest in one cryptocurrency, you may be unintentionally investing in multiple cryptocurrencies at once, which could cause a drop in their value and lower your overall investment.
When investing for the long-term, it’s better to spread your investments rather than have all of them invested in one cryptocurrency. For example, if you own Bitcoin and Ethereum simultaneously, this means that both of these cryptocurrencies will appreciate in value over time since they’re worth the same amount of money at the moment. This can quickly lead to an increase in your total investment value.
Safeguard yourself from a crash.
It sounds like a cliché, but it is true. A crypto crash will cost you dearly. When the market crashes, the price of bitcoin and other cryptocurrencies decrease dramatically. The volatility in the market can make it hard to choose which cryptocurrency to invest in and how much money to invest. This makes it harder for you to determine which coins will get more value during a crash.
If you’re going to invest in cryptocurrencies, then you need to be certain that they will still be available when the market crashes. Have some safety nets in place so that you’re not completely wiped out by a sudden market drop. You can take the following steps:
-- Invest in reputable altcoins such as Ethereum or NEO;
-- Buy some bitcoin or other cryptocurrencies;
-- Don't buy any of your stocks until after the market crashes have begun;
-- If you are going to use an exchange, avoid using platforms where there are lots of altcoins being traded at once because they may cause prices to spike and crash right when every altcoin is at its lowest price point(s)