The cryptocurrency market is known for its sharp fluctuations ⬆️⬇️ You may see a sharp rise in prices one day, followed by a sharp drop the next day ⚡ So it's important to understand the mechanics of the market and how to deal with those fluctuations 🧠
What causes these fluctuations? 🔍
1. News: Any announcement or news that directly affects prices 🌐 such as celebrity statements or changes in government regulations 📰
Example: When Elon Musk tweeted about Dogecoin ($DOGE ) its value skyrocketed 🚀 but after a short while, it saw a sharp drop 🔻
2. Market sentiment: Fear and greed are two major factors in moving the market 🧩 When investors feel fear, massive selling occurs 📉 But if greed prevails, prices rise irrationally quickly 🚀
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How to benefit from fluctuations? 💡
1. Learn technical and fundamental analysis: Use tools like Japanese candlesticks to understand market trends 📊
2. Portfolio Diversification: Spread your investments across several strong currencies such as Bitcoin (BTC), Ethereum (ETH), and Cardano ($ADA ) to reduce risks 💼
3. Use smart orders: such as Stop Loss to protect your capital 💰
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Warning ⚠️
Don't risk large sums in the market unless you are prepared to lose them 💔 The market is unforgiving to unprepared traders 🔥
Example: Do not invest based on rumors or empty promises about coins like $PEPE without checking their project well 🛑
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