How can I use reduce volatility in cryptocurrency?
Asked 4 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.
Please follow our Community Guidelines
Related Articles

MakerDAO: The History and Role of the Building Block of DeFi
Anderson Ezie
March 25, 2022

BlockFi vs. Compound: Interest Rates, Fees, Lock-in Terms, & Payouts
Filip Dimkovski
June 26, 2022

AAVE: Reviewing and Evaluating Leading Crypto Lending and Borrowing Protocol
Marcel Deer
August 16, 2022
Related Posts
Filip Dimkovski
Akropolis Explained: Features, Pros & Cons, and More
Filip Dimkovski
What Does APY Mean in Crypto?
Anderson Ezie
How Ethereum is Changing the Crypto Narrative
Anderson Ezie
How to Invest in the Ampleforth Stablecoin
Josiah Makori
Key Insights to Maximizing Staking With Lido
Can't find what you're looking for?