Bitcoin recently made its mark by reaching a new all-time high. However, this rise was followed by a notable decline, illustrating the volatility characteristic of this market. This article presents the strategy to adopt to remain a winner even when the crypto market acts up.
Bitcoin plunges after hitting new ATH
Two weeks ago, the crypto community was exultant when bitcoin, in full bullish momentum, exploded its previous ATH. The flagship crypto crossed the $70,000 mark before setting its new all-time high at $74,000.
However, since this peak, the asset has struggled to maintain its upward trajectory. The euphoria of the days preceding reaching this ATH seems to dissipate, giving way to an atmosphere oscillating between caution and excitement among investors.
This caution is partly explained by the fear of panic selling, a phenomenon where investors, fearing an even more significant drop in prices, rush to sell their assets, thus exacerbating the market decline. This behavior can lead to a negative spiral, where the fear of losing encourages more sales, pushing prices even lower. In this context, investors must stay informed, not give in to panic, but above all make good decisions.
Trade automation: the lifeline
In a market as volatile as that of bitcoin, trade automation presents itself as a wise strategy for investors seeking to optimize their returns while minimizing risks. The crypto-wealth application Ledgity is one of the best platforms for achieving this automation.
Through its Smart Invest functionality, Ledgity allows users to automate their cryptocurrency investments, providing protection against market unforeseen events. This systematic approach helps avoid impulsive decisions, often driven by emotions, which can compromise the performance of an investment portfolio.
Faced with market vagaries and emotional biases, the DCA strategy (Dollar-cost averaging) proves to be a reliable compass, allowing you to invest with peace of mind. By spreading the investment over time, it makes it possible to apply rational discipline, minimizing the risk linked to timing and promoting diversification of entry points into the financial and crypto markets, whatever their volatility.
Pierre-Yves Dittlot, Founder and CEO of Ledgity
Automating trades through Ledgity has several significant advantages. It allows for more disciplined market entry and exit, based on predefined criteria rather than spontaneous reactions to market fluctuations. It also provides the ability to take advantage of short-term price movements without requiring constant market monitoring by the investor.
In addition, Ledgity implements several rigorous measures to protect its users' funds. The platform requires extensive identity verification to create an environment of trust among its users. It also adopts diversified anti-fraud procedures, thus ensuring the protection of investments against illicit activities. In addition, Ledgity uses a crypto custody process based on MPC technology (Multi-Party Computation), providing enhanced security for users’ digital assets.
The cryptocurrency market, characterized by its significant fluctuations, exposes investors to a permanent risk of loss of funds. Thanks to its innovative Smart Invest functionality, designed to mitigate this risk, Ledgity becomes an indispensable ally for investors aspiring to secure their crypto investments.
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