Expert Strategies for Investing in High Volatility
Date: 2024-01-27 Author: Dima Zakharov Categories: IN WORLD
Cryptocurrency experts have shared their investment strategies in response to Bitcoin's recent price volatility. After the approval of Bitcoin spot ETFs, the leading digital currency briefly reached $49,000, but it soon faced a significant downturn, trading at around $38,000 by January 23. Bitcoin's reputation for extreme volatility is well-known, prompting discussions among cryptocurrency enthusiasts on Twitter, initiated by Cointelegraph representatives.
Trader Mo Iman mentioned a dollar-cost averaging approach, where investors diversify their capital across multiple assets. Iman emphasized the importance of taking profits at highs without becoming too attached to trades. Renowned crypto expert Helin Walker follows a simpler strategy, suggesting opening long positions as prices drop, treating potential declines as discounts.
Many participants in the discussion stressed the importance of remaining calm during periods of volatility. Users were advised to diversify their portfolios and use stop-loss orders, especially during sharp price drops.
Meanwhile, network metrics indicate increased activity among cryptocurrency whales as Bitcoin's price falls. Glassnode specialists reported a 3% average increase in the value of companies holding over 1000 BTC after industry funds were approved. Currently, the flagship of the crypto market is trading near $41,000, with the total market capitalization of digital assets estimated at $1.68 trillion. Over the past 24 hours, trading volume has surged by 24.7%, reaching slightly over $23.07 billion.
