Established cryptonauts may remember the situation at the end of 2017: The Bitcoin price is making high waves. Within 24 hours, the crypto currency climbed in valuation by 628 US dollars (as of 26 November, 08:15 a.m.). The Bitcoin exchange rate was thus able to make up almost 10 percent – and to slow down the slide of the past few days somewhat. The digital currency is currently quoted at 7,193 US dollars.
The Ethereum exchange rate is also benefiting from the wave movement on the crypto market. The second largest crypto currency by market capitalization was able to recover 9.7 percent within 24 hours. Thus the Ethereum exchange rate or Ether Token is currently 147.08 US dollars.
The Ripple price (XRP) was not able to make quite as many profits as its comrades-in-arms during this period – here it is 3.68 percent. Thus the Ripple price (XRP) is quoted at 0.219 US dollars.
The IOTA price (mIOTA), on the other hand, rose by 6.6 percent. The crypto currency for the Internet of Things is thus currently 0.209 US dollars.
Volatility: Surfing at the Bitcoin exchange rate
Now the question arises: How can one profit from such strong price fluctuations? The first step here is to decide on an investment horizon: Do I invest long-term or do I try to make short-term profits? The latter in particular requires a well knitted nervous costume – because you can’t stress that often enough: Emotions tempt to FUD and FOMO and are out of place in the crypto market. As you can read in the BTC-ACADEMY under Trading Tips, both lead to overheated decisions, which can sometimes lead to misjudgements.
However, if you want to profit from the Bitcoin price and the waves on the crypto market in the short term, it is advisable to ride on it. Remember the motto of the anti-cyclical investment:
Buy when the cannons thunder, sell when the violins play.
In other words, use volatility to your advantage. Because on the crypto market there is little you can rely on – the only thing that is relatively safe is phases of price fluctuations. So: buy after strong price falls, sell after strong rises, unless there is really fundamental news explaining a price direction. Bitcoin price targets are important in order not to fall into one’s emotions. The same applies “downwards”: How much am I willing to lose?
Dr. Julian Hosp shares a similar opinion:
Especially in times of extreme ups and downs, one must never forget that the truth often lies somewhere in the middle. It’s never as great as something is often sold, but never as bad. If you can separate emotions from rational thinking as an investor here, you usually have the opportunity to get good entry prices or good exit prices after pumps. Therefore: Stay calm, don’t let yourself be unsettled and sometimes simply take the fictitious step backwards to question the whole chaos from another perspective.
No stress: Hodler in the long run
Hodlers live – at least theoretically – a much more relaxed life in this respect. They trust in Bitcoin’s promise of values and in the fact that the Bitcoin course will reach its highest levels again in the long run. But here, too, it is important to set yourself firm course targets. Because that is a trading principle that one likes to overlook: The last big all-time high can only be recognized in retrospect, i.e. when it goes downhill again. Here, too, you can apply the principles of anti-cyclical investment.