Surviving Crypto Dips
The cryptocurrency market has witnessed one of those tumbling dips that deplets values and for future traders who are unlucky to set stop loss function an entire wipe of funds. The onus is how do you mitigate this type of crypto market crash ?
Bitcoin plunged along with other cryptocurrencies on Saturday, in another indication of the risk aversion sweeping across financial markets.
The largest digital token fell as low as $42,296 before paring some of the tumble. It was trading at about $47,600 as of 1:50 p.m. in Singapore on Saturday, a drop of about 11%.
There is only one basic principle on how to survive crypto dips. This is what I call the principle of having steady stable coin in your wallet. Divide your wallet funds into two, use 60 percent of the funds for trading and keep the remaining 40% as reserve fund. Never allow your emotions to make you dip your hands into this reserve funds.
This reserve funds comes in handy whenever there is a general Crypto market crash. At this scenario, you can now use the reserve fund after the storm of the fall has settled and buy the dip. Once the dip appreciates, sell off and return the reserve funds back to your wallet in the form of stablecoin and keep the trading going. The profit will be an added icing for your wallet. You can spend the profit as you wish.
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