The expected economic impact of the coronavirus has resulted in crashing stock markets across the globe. Unfortunately, the same thing happened in the crypto markets in the past few days when it became apparent that COVID-19 has become a pandemic.
In this article, which is not a financial advice and you should always do your own research before investing, we will discuss possible ways to trade the current crypto market volatility for those who are BRAVE (or crazy) enough to do so.
A bitcoin bloodbath
The world’s leading cryptocurrency, , lost all its 2020 gains and is now 24% down year-to-date. (But still up 31% in a year).
For medium to long-term bitcoin investors, the current market meltdown does not bode well. While experienced investors have seen this type of market drop before, it still does not feel good to see the value of your BTC holdings to drop almost half over the course of a few days.
Conversely, for traders who are actively trading in and out of bitcoin and other digital assets, the current market volatility creates opportunities to generate trading profits.
If you fall into the latter category of market participants, however, there are a number of basic trading rules, you should stay mindful of in this market.
7 tips to trade the current crypto market
Now, let’s look at a few things you can do to potentially increase your chances of coming out unscathed (and perhaps even profitable) trading the current market volatility.
1. Assess the situation
Hopefully, the money you have invested in crypto is only a small amount of your overall investment portfolio and not funds that you could potentially need in the near future. If that is the case, you should assess your portfolio and look at which assets you are comfortable holding versus assets you would like to hold more of.
