What are the ways loss can be prevented in cryptocurrency trading.?

[btaliat]

Cryptocurrencies ever since it's inception in 2016 has proven itself to be a volatile market. The direction of the coins is not even known to anybody even analyst. Though many people have come with different theories that may be responsible for the volatility but none really holds water.



A crypto user then is left with no other choice than to just willingly accept his fate by allowing his coin to dip during the bearish moment with tears in his eyes and rejoice when the coins starts traveling to the moon.


This was the case before some cryptocurrencies analysts came out to find solution to this dire situation and we have many crypto wallets adding some features that can stop of not limit or even prevent much loss during bearish.



The first of its kind was the introduction of stop limit feature. This feature is very useful for cryptocurrencies traders. This features allows them to stop trading at a particular points and even when there is bearish, it may not even affect their coins in an elaborate way.



Following this feature is the introduction of stable coins. Stable coins is to help the hodl. I mean, those people who prefer holding to their coins. With the introduction of stable coins, long term investors can decide to convert their coins to stable coins which neither rises nor falls. This will prevent loss that may occur along the line.



In as much as these two beautiful are very useful when it comes to cryptocurrencies, they still have their flaws because they are not able to prevent loses to the bearerest level. Which other methods do you think a crypto traders can prevent loss during bearish.

 

[Samuel72]

The best way to prevent loss in cryptocurrency investment is by follow the rules and regulation of the business, it's advisable for you to check day to day news of cryptocurrency so you can know the market rate of the coin you will like to invest in. it is also good for you to invest in the coin when the price is still low because with time the prize will appreciate.

 

[btaliat]

The best way to prevent loss in cryptocurrency investment is by follow the rules and regulation of the business, it's advisable for you to check day to day news of cryptocurrency so you can know the market rate of the coin you will like to invest in. it is also good for you to invest in the coin when the price is still low because with time the prize will appreciate.

That's right but there are always time of unforeseen circumstances where we don't even prepare for the worse that may happen. No one saw the issue bearish that's on going coming. And the bearish doesn't even affect some selected coins but all coins are affected. So I may not totally agree with your point despite the fact that it is a nice suggestion.

 

[Razor1911]

You can't actually. Prevention is not a corre t word to be precise. The loss is also a part of trading and we must acknowledge that. Whenever we trade, we are putting our money at risk. I can understand that with proper management we can minimize the risk, but to avoid or prevent it is completely impractical. Correct step would be to analyze the reason behind loss and rectify it so that mistakes is not repeated again.

 

[Alexandoy]

When it comes to trading crypto it is very similar to the stocks. You buy at a price of 10 that you will sell when the price increases to a substantial level. If the price goes up to 11 you will not sell because that 10% increase may not be substantial. But if the price goes down to 9 and it stays there for a month, what will you do?

 

[funmi]

To me I think loss can not be prevented totally, it can only be minimised. First thing to do is to learn about the trade at great length before starting the business. More so,paying ultimate attention to the trade is very crucial. You keep monitoring and checking it every now and then. Another thing that makes people to loss is when they set trade at high pride,it may fall in their favour at times it may not.

 

[Mika]

When you are trading, you need to work with low-value currency that is gaining a lot of momentum, Doge or SHIB INU, for example. Just by spending 33 US, you can buy 100 Doge. When the price increases you can earn a lot of money just from $33 investment. You can also trade higher priced currency but your investment will be very high