🌟 Hello everyone! I am a hardcore investing lamb.
Did everyone sleep last night? Hahaha, many friends have sleepless nights because of this wave of SEC operations.
What I want to share today is not an ordinary investment tip, but a key tip for staying steady in this volatile cryptocurrency market! 🔥
1. Diversification: We know that putting all your eggs in one basket is very dangerous. By the same token, if you invest all in one or a few cryptocurrencies, your losses will be huge if those currencies fall. So, the key is to spread the risk.
How to do it? Simply put, it means spreading your investments across different types of cryptocurrencies. For example, part of it is invested in Bitcoin, part is invested in Ethereum, and part is invested in some small tokens with great potential.
In this way, even if a certain currency performs poorly, the good performance of other currencies can make up for the loss.
2. Hedging with derivatives (options): Options are a powerful tool that can keep us calm when the market is unstable.
Options allow you to buy or sell a cryptocurrency at a specific price at a certain time in the future.
For example, if you are worried that the price of Bitcoin will fall, you can buy a put option. If the price of Bitcoin does drop, you can reduce your losses by selling Bitcoin at the price on the options contract.
On the other hand, if you expect the price of a certain currency to rise, you can buy a call option so that if the price rises, you can buy the currency at a lower price.
🚀 In short, through diversified investments and reasonable use of derivatives, we can sail steadily in the sea of cryptocurrency, and even if we encounter occasional storms, we can deal with them calmly!
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