Crypto is a field with a lot of ventures and investments. Each project has its tokens, but you don’t have to be an expert in all cryptocurrencies. However, as a beginner in the cryptocurrency market, you may feel overwhelmed by how cryptocurrencies are being traded; or how cryptocurrencies can be stored and made available for use. All these make cryptocurrency management a challenging task for any trader or investor.
Moreover, there are also cases of volatility in the market, which can easily scare away investors even though it’s one of the biggest opportunities in crypto.
Making and losing money in this volatile market depends on how well you manage your crypto. As you venture into the exciting realm of cryptocurrencies, careful planning is essential to protect your investments. Safeguard your digital assets and unlock their growth potential by considering the best high-interest savings account. Here are the following tips to help you manage your cryptos:
1. Use Crypto Bots
A bot is an automated program that buys and sells cryptocurrency on your behalf. They can build up portfolios over time and make more money from trading than you would by buying and selling manually. There are different types of crypto bots, as explained on WP Dev Shed, among other sites, so you need to check the detailed features of each crypto bot before using one.
Crypto bots are freely available online, but many require you to set up an account with the provider before you can use them. Some bots even have an accompanying mobile app that allows users to monitor their portfolios.
Crypto bots such as Quadency and many others also offer charting features, market research, and data analytics. They will help you keep track of your portfolio from your web browser or mobile app and customize your trade strategies.
2. Diversify Your Portfolio
If you’re a crypto investor, the best way to manage your risk is by diversifying your portfolio. By having a diverse portfolio, you can shield yourself from market fluctuations. When one asset in your portfolio falls, another asset might rise.
The best example of this is how people invest in a stock market index fund or mutual fund. These funds don’t just invest in one company — they invest in hundreds of companies across different industries. This way, if one company fails, it won’t affect the overall value of your investment fund.
You can do something similar with cryptocurrencies by investing in different coins and tokens related to but not dependent on each other. For example, if you have invested in Bitcoin and Ethereum, you may consider investing in Litecoin because these three coins have different uses and benefits.
3. Re-balance your Portfolio Regularly
Re-balancing is selling assets that have gone up in value and buying assets that have gone down in value (or vice versa). It ensures that your portfolio is always appropriately allocated across different asset classes.
This strategy can help you reduce risk by maintaining a diversified portfolio. For example, if you invested USD$100 in Bitcoin when it was first released and rose to USD$2,500 within a year, you would want to sell some coins and re-balance your portfolio so it wasn’t too heavily weighted towards one asset class.
4. Track Market Trends And Movements
The first thing you need is to keep track of the market trends and movements. This way, you will know when to sell or buy. You should also keep up with the latest crypto news to know if the market is in a bull or bear cycle. This can help in making better decisions when managing your portfolio.
Multiple websites can help you track the price movements of various cryptocurrencies to prepare you for any upcoming changes in their prices. You can also use these websites to see the market trends, which will help you determine whether it’s a good time to buy or sell. However, you should be keen to avoid the noise about crypto performance as you’ll come across them when doing market research. Learn to differentiate between reputable sources of information and noise.
5. Store In A Cold Wallet
A piece of a hardware device, which refers to a cold wallet, stores your private keys offline, making them inaccessible to hackers. The device should also be kept in a secure place where no one can access it without your permission.
It’s advisable not to keep all your funds in one cold wallet as this could make you vulnerable to theft if someone gets hold of it. Also, ensure that there are no backdoors or hidden features on the device that could allow anyone access to your funds even if they’re offline (which is highly unlikely).
Conclusion
Remember, the crypto market is extremely volatile. That means that there will always be chances to earn big, but there will also be a lot of inevitable corrections and dips in the road. The results won’t be pretty if you try to go all-in on some hot new token without doing your research first.
The best thing is to put some of the advice above into practice and keep yourself informed about recent crypto space developments.
