The cryptocurrency market is always very risky whether you are new or even have many years of experience. Preventing risks is not easy. Equip yourself with some methods to research and learn."
Futures: Through the use of cryptocurrency futures, investors can buy or sell cryptocurrency at a predetermined price on a specific date in the future. This is a useful tool to protect yourself against potential price fluctuations.
For example, if you are an owner of a cryptocurrency but are concerned that its price may fall, you have the option of selling futures contracts. It is possible that the profits from the futures contract could compensate for the loss of your holding in case the price falls.
- Perpetual swaps: Perpetual swaps follow the price of an asset like bitcoin and provide continuous trading. Leverage allows traders to open larger positions with less margin.
If you expect the price of bitcoin to decrease, you can short a Bitcoin perpetual swap. Bitcoin losses should be minimized by increasing the perpetual swap if the bitcoin price falls.
- Short selling: Certain platforms facilitate short selling, which involves borrowing cryptocurrency, selling it, and then buying it back to pay it back. If the price falls as you expect, you will make a profit, which can offset losses in other assets.
In addition, you should also understand about cryptocurrency "Risk Insurance".
It is essential to understand the situation clearly before making any commitments, as every financial tool and plan has both positives and negatives associated with it.
Consider the possibility of investing in several different cryptocurrencies and possibly spreading your money across a variety of assets.
When it comes to investing, simpler tactics are often more effective.
However, consider very carefully, try not to invest everything you have... invest for the long term and acquire more knowledge.
