The cryptocurrency market has experienced so many highs and lows since its inception. The large and unpredictable price changes demonstrate the volatility of the cryptocurrency world. It is so volatile that a simple tweet from the likes of Elon Musk can affect the market as a whole.
This unpredictable nature of the crypto market is an issue of concern to most newbies in the market and experts alike. This is so because while rebounds and robust expansions may follow most market downturns, declines may be stressful and challenging to handle regardless of your level of experience. A minor mistake can land you in irrecoverable debt in no time.
Nonetheless, you need not become a spectator, watching your colleagues make money from digital currencies. Neither should you be pressured to invest because others are doing it. All you need is to make smart decisions in order to avoid regrets.
To stay afloat in this ever-changing market, you need to know tested strategies to invest in cryptocurrencies. The best way to do this is by learning from an expert in the field. Thus, today, we will be learning from Ryan Dean Hoggan on how to strive in the crypto market.
Don’t fall prey to FOMO
FOMO (fear of missing out) can strongly influence our choices to buy and sell. As humans, we tend to follow the crowd, which also relates to the crypto space. A lot of people invest to avoid regretting when their colleagues are raking in profit.
Ryan Dean Hoggan stressed the importance of ignoring the hypes and filtering a particular coin’s information. When it comes to investments, be it online or the traditional method, your decisions should not be based on public opinions. Some cryptos aren’t worth the hype, no matter what you hear.
The smartest method to invest is to research the market properly, take reasonable risks based on what you’ve learned and seek expert advice if necessary. This will help you filter out unwanted and exaggerated information and know when the hype is actually worth it. Rather than follow the trends on social media, read the chart.
Diversify your Investment
Ryan Dean Hoggan believes that putting all your eggs in one basket is a risky sport. It is better and safer to spread your investment across different cryptocurrency assets. The rationale behind this is to reduce your losses should the market take a decline.
The best way to do this is by buying multiple cryptocurrencies so that you can benefit when any of them boom and spread losses should one or many of them dip.
Make use of stop losses
Establishing a clear stop loss level is a skill that is rare among traders. However, Ryan Dean Hoggan said it is a great skill to navigate the crypto market. Crypto is here to stay, and investing early and intelligently will help you navigate this complicated market.
Stop losses will help you in the face of adversity to at least walk away with what you invested in or slightly lower, even if you don’t make a profit from the investment.