Strategies For Managing My Crypto

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I started my cryptocurrency journey back in 2019/2020 period when a very good friend of mine introduced me to some mining projects. I was fully into cryptocurrency trading during the COVID-19 pandemic, and so far I have learned that having a strategy is the key to a successful cryptocurrency journey.

Crypto traders are usually faced with the challenge of investing in the right token, and also doing it at the right time too. Someone told me that crypto trading can make me a millionaire overnight, but the truth is that it can also make me the poorest man overnight because the crypto market is very volatile.

The cryptocurrency landscape provides so many opportunities for traders to make profits, but the big question is how many traders are aware of the ways of taking advantage of the fluctuating digital market. I have learned some things from observations and I have also done my research on Bitcoin and other altcoins, making me familiar with some of the strategies I will be sharing below.

Some of my Cryptocurrency Strategies Include:

I believe you have heard of the saying "Do not make the mistake of putting all your eggs in one basket, because you might end up losing all of them at once." This is the same with cryptocurrency because every crypto coin has its unique community and ecosystem which makes it differ in strength and value from another coin.

This means that even in a bearish market where all the major coins are declining in value, there are some coins that would 2x in the bearish season. For instance, I have observed that whenever BTC is on a major downtrend, a certain coin called GMT would be on a major uptrend.

So when I say diversifying my crypto portfolio, I don't just mean buying a variety of different tokens and hoping for the best. Instead, I would take very careful approaches in selecting the most preferable assets to invest in at that point in time.

A well-planned diversified portfolio might include a combination of established cryptocurrencies like Bitcoin and Ethereum, which tend to have more stability compared to newer tokens, along with some selected altcoins and utility tokens that offer unique value propositions.

It's exciting to see that the Hive ecosystem provides a universe where users can earn different creative tokens and coins apart from the native token of the Hive blockchain (Hive). I can confidently say the Hive ecosystem has helped me alot to possess many other coins and I have learned alot from this experience.

This shows the Hive blockchain supports my strategy of diversifying because the various Dapps and frontend here allow us to earn tokens like the Leo token, Neoxag, BBH, STARBITS, POB, and so on.

Beyond just diversifying across different types of cryptocurrencies, I consider factors like the technological framework, market capitalization, and the development team's track record.

And so far this strategy has been superb because my goal of diversification is not necessarily to maximize returns but to achieve a balanced portfolio that can withstand market fluctuations while capturing growth opportunities.

Another major strategy I make use of and I believe every other crypto trader is conversant with is the risk management strategy. It's great to always check cryptocurrency news websites for the latest market trends, technological advancements, and regulatory updates. But I don't think any of that beats having a good risk-reward strategy for your assets.

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The cryptocurrency market is not an illusion, so whenever I enter into it, my expectations are always realistic. I know that with a single mistake, I could lose all my assets and so I only invest what I can be able to lose.

When I was still learning about cryptocurrency trading, I took out enough time to learn and understand how to effectively set up an effective risk management strategy. It is important and always advisable to go into a market with what you can afford to lose because the cryptocurrency market can get very unpredictable in most cases, even with your effective risk management strategy you might still cry, hehe.

Having an effective risk management strategy involves having a target and estimating what you are willing to let go. That's why I don't joke with placing a stop-loss and take-profit order whenever am trading.

Placing a stop-loss and take-profit order has proven to be the backbone of my trading journey because it has protected my investment in so many cases when the market had a dramatic swing. Sometimes everything might be going smoothly uptrend, and all of a sudden within a few seconds the market would turn red like an aggressive traffic light, making traders lose money if no stop-loss.

Over the years of my crypto adventure, I have come to realize that the crypto market is known for its volatility, and as such sudden price changes are now a common expectation for me.

Conclusively, I would tell us that the cryptocurrency space is one of the most adventurous places to be, because it has the ability to mess with our emotions, lol. Strategies are the escape routes for every form of cryptocurrency danger. Diversifying my crypto portfolio and having great risk management strategies are my ultimate keys to a wonderful crypto experience.

My entry for day 11 of the InLeo monthly prompt, organized by the InLeo team. You can check out the link here for participation.

I appreciate your time around here❤️:-)