We have already passed the one-month mark of the international quarantine period and it is yet to be predicted when this pandemic will end. Now that everything is under quarantine the industry that seems to be taking the biggest knock is trading.
Investors and traders around the globe have started to predict the outcome of the trading market, but nobody really knows what the future has in store for us. Whether the quarantine period will last for several weeks or for several months and with the probability of an extension of the quarantine period investors and traders have started to worry about their investments.
However, investors who have invested in cryptocurrencies can take advantage of this crisis. Cryptocurrency is a volatile asset, but in times like these, it is one of the most valuable and profitable investments. In times of crisis many marketers sell their assets at a very cheap price due to the low curve in the market. Here you can seize the opportunity to make a profit. If this is something that interests you, you can login to https://bitcoinscycle.com to make your first cryptocurrency trade.
So, what are the things that the cryptocurrency traders can do to keep their sanity in check?
- Don’t let your emotion control you
We all know how cryptocurrencies are volatile in nature and how it can affect your deals, but the marketers have found their own way of treating the volatility to their benefit. As a trader and investor, it is very important to get accustomed to this volatility, as it is the reason investors and traders like us make a profit. “Selling it high and buying it low” is the mantra to making a profit in the market.
Theoretically speaking, the more volatile the asset is, the more profit you can make out of the deal. However, don’t get too carried away, as the volatility comes with risks as well. This is the reason why you need to have a flexible strategy that you can bend according to reality.
This also means that your action should be controlled by your conscience rather than uncertainty such as emotion. However, it is also very important to maintain your sanity while dealing with high volatility, because there is a thin line between greed and the growth of potential profit.
- Keep your portfolios in check
Having more than one portfolio is the best way to leverage profit. It is also one of the best strategies that the marketers, traders, and investors are using in the midst of the pandemic.
Having more than one portfolio means that you have divided your capital investment into small fragments and have invested in different portfolios, which helps you to fight the volatility. For instance, if you have invested in three kinds of assets and stocks, the volatility of the market can affect one of the assets but it will not affect all of your assets. Hence, you can still come out with a profit on your whole capital investment if the other assets work fine.
The first rule of being a successful trader is having a clear idea of what a reasonable growth potential of profit is, versus greed. Knowing the difference between the two can help you to make attainable decisions. A good trader has a balance between risk and reward in order to be successful.