What strategies can I use to avoid excess volatility when day trading digital currencies?

1 answers

• Mar 06, 2022 · 3 years ago
  At BYDFi, we recommend using a combination of fundamental and technical analysis to navigate the volatile nature of digital currencies. Fundamental analysis involves evaluating the underlying factors that influence the value of a digital currency, such as its technology, team, and market demand. Technical analysis, on the other hand, focuses on analyzing historical price patterns and indicators to predict future price movements. By combining these two approaches, you can make more informed trading decisions and reduce the impact of excessive volatility. Additionally, using risk management techniques, such as setting stop-loss orders and diversifying your portfolio, can further help mitigate the risks associated with volatility in digital currency markets.
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