Sometimes, the crypto market can experience increased volatility during the festive season. In this guide, we’ll teach you various strategies to help you secure and properly manage your digital assets this holiday.
How to Prepare for Holidays as a Crypto Enthusiast
Here are some ways you can get ready for this year’s holidays:
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Build a Diversified Crypto Portfolio
As mentioned, the digital asset market can become highly volatile during holidays. Therefore, diversification is key as it shields you from high volatility. Holding a range of digital assets, including fungible and non-fungible tokens, can go a long way in providing much-needed balance and resilience to maneuver a highly volatile market.
Utilizing Stablecoins
It is important to include stablecoins in your portfolio since they maintain their value regardless of the level of volatility experienced in a crypto market.
Assess Your Crypto Portfolio
Holidays provide an ideal time for crypto users to adjust their portfolios to align with their investment goals for the following year. You can choose to sell assets that you think have reached their optimum prices and use some of the profits to buy new tokens that you believe will perform exceptionally well next year.
Explore Trading bots
It is easy to forget to monitor your crypto investments during holidays, as you could be enjoying some family time. But thanks to automated trading bots, you can put your digital assets to work to continue generating profits for you. Such bots execute trades according to the set criteria. For example, you can instruct a trading bot to open a buy position once Bitcoin reaches, say, $38,567. You can also set trading parameters like take profit and stop loss.
But how do you choose the right trading bot? Well, here are factors you need to consider:
Security: The trading bot you choose must not have vulnerabilities that could lead you to lose your funds.
User reviews: You want to select a trading bot with positive user reviews. Avoid any bot that has massive negative feedback.
Customization: Ensure the selected bot allows you to adjust the trading strategy to match the current market conditions.
Reliability: Choose a trading that doesn’t take a break. A reliable trading bot is one that constantly scans the market to identify profitable opportunities.
It is important to mention the need to backtest your strategy before committing funds to a trading bot.
Subscribe to Mobile Alerts
While enjoying your holidays, you need to stay updated on the volatile cryptocurrency markets. An effective way to do so is by subscribing to mobile alerts for real-time news affecting the digital asset industry. You can allow notifications from reliable crypto news platforms and price aggregators like CoinGecko or CoinMarketCap.
Secure Your Crypto Investments
Cybercriminals never stop working during holidays. This calls for the need to ensure your digital currencies are well protected. Here are some tips for securing your cryptocurrencies this festive season:
Prioritize Wallet Security
Considering how vulnerable hot wallets are, you can buy a hardware wallet to store your crypto assets offline. This will definitely give you peace of mind as you spend time with your family. Also, be sure to adopt multi-factor authentication in all your cryptocurrency accounts. Moreover, this is the perfect time to update your passwords for those accounts.
Understand the Complicated World of Crypto Taxation
As cryptocurrencies continue to witness mainstream adoption, more governments have found ways to impose taxes on these digital assets. For example, crypto holders in the United States are required to report capital gains on their holdings. That said, it is important to understand the crypto tax laws imposed by your country so you can engage in digital asset trading in a regulatory-compliant manner.
Final Thoughts
Diversifying your crypto portfolio, exploring trading bots, adopting robust security protocols, and understanding the crypto taxation landscape is key to achieving success in the cryptocurrency market during this festive season. Embracing these strategies will give you peace of mind as you celebrate with your family.