The worst part of trading is that not every trader can make money from the market.
Cryptocurrency It is discussed all over the world. The central banks of the world’s largest economy are working on their digital currency. However, so far it has received legal recognition in only one country – El Salvador. Despite this, it is the hottest asset for the investor as of today. In such a situation, it is very important to know some things before investing in cryptocurrencies.
According to financial experts, before investing in Cryptocurrency it is important to know what will be the entry and exit strategy for it. There has been a huge jump in the price of cryptocurrencies during the Corona period, as central banks around the world access liquidity flows. Part of it went to the crypto market. In April 2021, bitcoin had reached 64 thousand dollars. It was at the level of $ 54350 at 2.30 in the afternoon. It has gained 28 per cent in the last one week.
Focus on monthly 8-10 per cent returns
With the crypto market maturing very fast, many hedge funds and investment banks are openly participating in it. Experts advise that when investing in crypto, volatility remains. In such a situation, instead of multi-bagger returns, investors should think about monthly 8-10% returns. Update and upgrade your portfolio every month with the help of this method. If you are able to do this, then you will get more than 125% returns on an annual basis.
invest in installments
Investors who have learned from the ups and downs of the market say that the best formula for investing in the crypto market is ‘Dollar Cost Averaging’. This is the method of investing in which you divide the value of your investment into small parts. In whatever digital currency you want to invest, instead of investing all at once, invest little by little. This will minimize the effect of volatility.
Buy on rumours, sell on news
What will be the exit strategy, it depends on how much return you want. However, in the financial market “Buy on the rumor, sell on the news.” The formula is very old and tried. This means that when the rumor market is hot, then buy, and when the news is about to come about it, then sell.
Take the help of technical analysis
Apart from this, Technical Analysis is considered most suitable for exit. Most of the investors in the market, whether they are small or big, buy and sell on the basis of technical indicators. Since most investors use this formula, it is also accurate because of this. If you study it, then you will be able to know about the overbought zone and the oversold zone. This gives you an idea of where to buy and sell levels.
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