Recent years have seen the cryptocurrency market provide some of the highest-paying investment opportunities in the world. Small-scale business owners have been noticing. Many are now relying on investments in cryptocurrency to make up an essential portion of their portfolios. However, since the beginning of the year, the investment markets, including crypto, have been slipping into bear territory. This is putting a substantial economic burden on business owners who must balance their financial well-being with the well-being of their companies. This is why some have begun moving away from cryptocurrency to stop more losses. However, similar to the market for stocks, it’s the individuals who remain on the right track who eventually emerge in the lead. Instead of shedding cryptocurrency, businesses should alter their portfolios to minimize the risk and take advantage of market fluctuation. Here are three strategies that crypto investment owners can use to get through the recession.
Automated trading GRID
One of the most challenging aspects when investing in a volatile market is that it’s hard to adhere to any plan for a long time. Unpredictable price fluctuations could make what appears to be an investment that is sound today seem to be a poor option in the future. There is an option for the investor can profit from volatility when they’re willing to hand an account to a trading robot. In this way, they’ll be able to create and implement an automated GRID strategy to yield huge returns in a volatile market. The GRID strategy allows investors to select different prices for entry and exits and relies on technology to put in the correct orders when opportunities occur. The advantage of this strategy can be seen in the fact that it lets investors tailor their plans according to their tolerance to risk. Since it’s a method based on market volatility, this strategy can work for the investor’s benefit regardless of how the market is performing. If the market performs well, it makes money by trading low while buying high. If the market exhibits weakness, it serves the opposite, making money from covers and short-term orders. This is an ideal long-term investment for investors in crypto.
Yield Farming
A different option to look to for constant returns during the current market downturn is to use yield-facing. This is an investment strategy that is unique, with no apparent analogy to traditional finance, aside from instruments such as CDs issued by banks. However, with cryptocurrency, no central organisation generates the returns that investors can distribute. Yield farming instead allows investors to use cryptocurrency assets to make high-APY yields by using them with funds for market-related operations. In light of the rise in base rates by the Federal Reserve, yield farming has become more appealing than ever. This makes the present the ideal opportunity for investors to give the concept a go. The most popular kind of yield farming is known as staking.
Investors decide to put their funds — or stakes -into the crypto account for a specific time. These assets become part of the currency’s blockchain, which uses stakes to confirm transactions made on its network. In exchange, the buyer receives a share of the network’s revenue. In addition, crypto-asset owners can participate in yield farming by joining the crypto lending platform. These platforms allow loans based on funds from investors and reward investors with a substantial part of the interest these loans earn.
Furthermore is that many of them have features to maintain interest rates to ensure predictable returns for investors. Investors can also make substantial returns by locking up their money in liquidity pools. These pools supply the cash needed for thousands of trades that occur each day. In exchange, investors get a share of the processing fees incurred through the collection.
Make investments based on Elliott Wave Theory.
One of the reasons that make crypto an attractive investment is that it’s not under the traditional banks. It created it (in investors’ minds more likely to be favoured by more prominent investors over the smaller investors. It was a natural fit for small-scale business owners, who often fight to compete with larger market rivals. Although crypto markets are a fair playing field than other traditional markets for investing, they depend on the preferences of investors. In other words, deteriorating conditions may trigger sudden price drops when panicked investors attempt to limit losses. These movements aren’t necessarily tied to any financial fundamentals but rather an expression of investors’ mood at the time of the day. However, it turns out there is one investment method that can take advantage of this trend. It’s known as the Elliott Wave Theory and utilizes crowd psychology principles to forecast the direction the crypto market is headed. When applying the concept to their portfolios, crypto investors can benefit from the fluctuations in price which occur as market speculation triggers the volatility. It’s possible to build a risk-free investment in crypto-based assets -an option that isn’t available with other investment options.
The Bottom Line
Any business professional will tell you that one of the critical elements of running a profitable company is to find ways to profit from mistakes made by competitors. Also, they’ll know that the most promising opportunities to make money occur when economic pressures force the competitors to make unforced mistakes. The same logic applies to cryptocurrency markets. When the market conditions worsen, investors can alter their strategies to reap significant gains as competitors leave. It’s possible to do this by implementing one or one or more of the strategies mentioned that are listed above. The traditional saying says luck favours the brave — and this is the ideal moment to hit the jackpot.
