One way to make a profit in crypto space is by following the trend, by following the latest crypto market trends you can trade based on positive sentiment in the market, but how do you follow the trend? And what are the risks of trading based on sentiment or market trends?
Market trends greatly affect the money’s flow that revolves in it As in the last quarter of 2022, the market trend is towards the Move To Earn project category and also WEB3, which with this trend has caused cash flows to enter several projects in that category. And with a large flow of money entering projects with specific categories, it usually causes price increases for projects with similar categories. This is usually used by traders to carry out buying and selling actions in a relatively short time. But how do you follow the latest market trends? One way to find out market trends is by participating in community activities, in which this community is positive and educative and provides many different perspectives due to discussions between presenters and audiences. An example of a crypto enthusiast community that provides all the needs of its community members is the Dex Capital Community Not only can you find out about the latest trends in the crypto market, you can also interact among fellow crypto enthusiasts to hold discussions and exchange information.unity
Then finally, what are the risks of trading or investing by following the latest market trends? If you are a trader, who makes transactions in a short time, maybe the risk you receive is lighter compared to investors who make transactions with a long period of time Because usually if the trend or hype has passed, usually projects in that category will experience more money outflows than money inflows. Or in other words, reduced demand. This causes a decrease in the price of the project invested. Is there a way to minimize the risk if you follow the trend? Because market trends are always changing, and usually if the trend has changed then the old trend will become extinct as are the prices of projects with that trend category. To minimize the risk of large losses due to trend movements that cause price declines, then use a portion of money that is not large, or don't invest the amount you can't afford to loose, which by using this small part of portofolio’s will make your main portfolio not get disturbed. Some of us use a portion of 3 to 5% of the portfolio for trading based on the latest market trends Finally, currently the market trend is focusing on Artificial Intelligence so that several projects in this category are monitored by traders or investors. Are you one of them? Check out more article similar only on Dex Capital Community