Leverage only what you can afford” says Akshansh Yadav on the Recent Crypto Crash
Crypto investors are anxious as the world’s largest cryptocurrency, Bitcoin, and other digital coins continue to plunge. The entire crypto market now has a market capitalisation of $1.2 trillion, less than half of the $2.9 trillion it was worth in November. The crypto plunge is likely to scare off some of the retail investors who poured money into crypto during its surge.
putting all your eggs in one basket is not the right strategy in the world of crypto. What’s better is to split your investable income into different coins and exchanges. This is because all the exchanges don’t have the same assets. For instance, if you’re looking to invest in different coins then choose maybe a stablecoin, a coin that works on proof of work consensus algorithms such as Bitcoin, Ethereum, etc, and an environmentally friendly coin. By spreading your investments across different digital assets, crypto investors can reduce the overall risk profile.
Akshansh Yadav, GM & Group Head of Marketing for India’s biggest Media Brand opines, “The key to effective crypto investment is utilising the ‘limiting order’ function. Use the algorithm to your advantage. Start limiting orders, so even if you are asleep and the price crashes, you could still protect yourself if the market moves against you.”
Akshansh further adds that leverage only what you can afford. If buying any coin, go for small quantities, don’t fill up your wallet with big amounts of coins. That said, if you use too much leverage your trades won’t have enough time to breathe and you can lose your entire principal amount during a market crash.