How can I use reduce volatility in cryptocurrency?
Asked 3 years ago
Are there other ways to avoid crypto volatility aside from building a balanced portfolio?
Anderson Ezie
Wednesday, February 02, 2022
Aside from building a balanced portfolio, the only other detail to hedge against potential cryptocurrency volatility is through short selling, futures, perpetual swaps, or options. As a beginner cryptocurrency investor, it is advisable to study the DeFi platforms offering this in details before going heads on to invest in any of the platforms. You must also know the inherent risks such as funding rates and liquidation points denoting time and or criteria at which you may incur losses depending on the position you take in the market in the face of the market reality. There are also chances of huge returns, but you must used reliable analysis ranging from technical to fundamental to ensure that what you are doing is right, and that you will not get reckt from losing on one position.
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