How to Keep Profits when Investing in Cryptocurrencies

CRYPTOCURRENCY MARKET

The markets are still in a sideways motion as the majority of digital currencies are in minor loss or minor gains. NEM’s XEM led the positive action in the markets on Sunday and has continued into Monday morning. Total market capitalisation has stepped over the $210 Billion mark and is sitting just over $213 Billion.

HOW TO KEEP PROFITS WHEN INVESTING IN CRYPTOCURRENCIES

One of the major factors that attract investors and traders to this type of investment is the volatility, where a crypto can be worth $1 one day and $25 a couple of months later. I have spoken about the topic of Holding and how this is not the most profitable method of investing short, medium and long-term, buying/selling a portfolio actively is always going to render more successful results.

HOW TO INVEST IN CRYPTOCURRENCY — WHAT IS A STABLECOIN

A Stablecoin offers a solution to markets where there are unknown/high levels of volatility. When Cryptocurrency Investing faces a certain level of uncertainty, crypto investors may wish to use cryptocurrency exchanges to move their assets to a holding that is not affected by the rest of the market.
The issue with the crypto market and the need for Stablecoins and the effective use of them is apparent as the major currency is Bitcoin (BTC) a currency which can move +/- 5–10% on is own each day. This creates somewhat of a problem as traders and investors need a place to be able to store their profits.
You may have found yourself placing a successful major cryptocurrency investment only to find on the way to realising your profits you end up losing a % of it because the market has dropped.
How To Invest In Cryptocurrency becomes a real question, one answer is the process of using Stablecoins. One of the most notable Stablecoins called Tether has existed to solve this problem for investors. As mentioned earlier, there are others in this space but in essence, they are all solving the same issue, providing a stable store of value in a highly volatile marketplace.

MOST COMMON TYPES OF STABLECOINS COLLATERAL-BACKED IOU (FIAT-BACKED)

COLLATERAL-BACKED ON-CHAIN STABLECOIN

STABLECOIN CRYPTOCURRENCY INVESTING

So now we have established what Stable coins are and the types of Stablecoins available to us, how do cryptocurrency investors and traders take advantage of them?

CONCLUSION

A Stablecoin is an asset in the cryptocurrency space which isn’t affected by volatility and has a stable value, offering investors and traders an option to store profits rather than the potential loss of those profits by storing them in BTC or ETH.
The current reality is that since Tether has launched in the market it has become the industry store of value, like USD in Forex trading. You can check the charts of Tether going back several years now, it has consistently provided the opportunity to store value, and is one which, although highly controversial, is being used by many crypto traders and investors.

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