The attractiveness of the crypto market is driven by the high volatility of assets’ rates. It allows for numerous earning opportunities for investors and traders who make a profit on cryptocurrency rates changes.
There are several working trading strategies that allow getting profits from cryptocurrency values volatility:
- Scalping
- Intraday trading
- Swing trading
- Arbitrage
- Position trading.
They differ by the frequency of placing orders and the number of platforms used. For instance, the arbitrage strategy allows trading on several exchanges simultaneously, taking profits from the difference in cryptocurrency values on different crypto platforms.
Aspects impacting cryptocurrency price:
- first of all, the essence of the project and its usefulness;
- competition;
- supply/demand;
- the power and complexity of receiving one coin;
- investors sentiment;
- overall market trend.
Thus, we can see how cryptocurrency rates change, and the bullish trend is replaced by bearish market moods.
However, there are crypto assets that are not subject to volatility, and the above-mentioned factors do not affect them.
Stablecoins
From the name “stablecoin”, it becomes clear that the asset price is steady. That is, it does not change under market fluctuations and other aspects. Stablecoins are digital assets connected to fiat currency, for example, a US dollar.
Tether (USDT) and Binance USD (BUSD) are the most widespread stablecoins. They are not assets for investment because their price will not grow. However, they are massively used by investors to hedge risks. When huge market fluctuations occur, traders convert their savings into USDT or BUSD, etc., to maintain the treasury of their investments.
All crypto exchanges offer a cryptocurrency calculator where you can calculate and convert your crypto assets into USDT and then move funds to your bank card; the same goes in the reverse direction. Try to use the WhiteBIT cryptocurrency exchange for that purpose.
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