You are not seeing high volatility in the Cryptocurrency market? Try these 4 trading tactics.
Price volatility has been a hallmark of the cryptocurrency market for years. The wild price swings of Bitcoin (BTC) and other cryptocurrencies have hindered their adoption by mainstream financial institutions, but have also provided speculators with the opportunity to take advantage of price swings to make huge profits in an instant.
But now we are at a very unusual moment in the history of cryptocurrencies — a period when market volatility was almost zero, and top cryptocurrencies were trading in very narrow price ranges. During this quiet period, traders and investors are adjusting their strategies to still realize profits without much market price volatility.
The cryptocurrency “big brother” remains a “barometer” for the entire cryptocurrency market, with the Bitcoin volatility gauge recently falling to its lowest level since April, stabilizing after the Terra Luna coin crash this summer. Bitcoin hit an all-time high of nearly $69,000 about a year ago, but has traded in a tight range around $20,000 for the past four months since a “big dive” in 2022.
Given the prolonged period of low volatility and little price dynamics in the market, traders are adopting new strategies to continue profiting from the cryptocurrency market. The following are some of the trading strategies that can be used in the low volatility period:
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Options Selling
Investing in DeFi firms has noticed an increase in demand for selling options, a strategy that allows traders to make money even when the market is flat or sideways. Because selling a call option still allows the trader to charge a premium when the price is flat, you can still make some profit in a low-volatility market.
Stake your tokens
In addition to daily trading, you can also make money by staking your idle crypto assets. You lock up a certain amount of cryptocurrency in a staking pool from which you will earn interest over time. Some cryptocurrency exchanges offer some interest products along with trading. For example, StormGain has a special feature: you can earn passive income by holding cryptocurrencies.
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Convert them to Stablecoin
If you’re not sure if this period of low volatility will continue, or if it’s just calm before a storm and don’t want to be caught off guard, you can consider decoupling some of your assets from potential sudden market swings. This can be achieved by purchasing stablecoins such as Tether (USDT) or USD Coin (USDC).
Long-term currency holding
This classic cryptocurrency strategy requires almost nothing on your part, but it works great for traders who can afford to wait. Just be patient and wait for the next price surge to come, and maybe add some more while cryptocurrencies are relatively cheap.
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Join StormGain and continue your new journey in cryptocurrency
All of the above strategies and others can be used effectively on the crypto platform StormGain, which also features a variety of tools that provide you with the best price levels and benefits in the market. The StormGain platform has a web version and an easy-to-use smartphone app, offering options trading, passive income streams, and a wealth of cryptocurrency assets to trade, as well as exclusive features such as: Bitcoin cloud mining tools (simply using the platform, you can get free bitcoins), waiting for you to experience. StormGain also comes with a full range of educational resources and a full-featured demo account, so users can better understand their situation and conduct a simulation exercise before officially entering the exciting crypto market.
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(Forex Broker)
Comment by Hans
April 24, 2024
as I am trading here various assets, for me it's the most important feature. i mean, flexibility in tradable markets. i alternate trading styles, meaning that sometimes I trad...