Many potential investors fear turbulence within the crypto market. Kavan Choksi asserts that the levels of turbulence seen in the crypto market this year have not necessarily been harmful. Volatility is a part of the asset market that can be beneficial if properly managed and understood.
Because of the high volatility, prices will fluctuate dramatically. However, Kavan Choksi believes this volatility can provide an opportunity for you to profit if you can navigate it correctly. Managing the related risks is critical when investing in any asset, and crypto is no exception.
Crypto Volatility Management
Any investing vehicle must adhere to fundamentals while coping with volatility. It's as essential to avoid making rash decisions as being overcautious. Kavan Choksi explores some tips for volatility management here:
· Avoid being emotional.
You're bound to be overwhelmed with folks trying to sell you on the emotionality of a particular investment if you browse an online cryptocurrency chat room. Kavan Choksi emphasizes that taking an emotional approach to investing must be avoided at all costs.
· Try not to time the market.
Because of crypto's volatile nature, locating or planning a time to buy in ahead of time can be difficult, if not impossible. Getting into the market at the right time is beneficial. However, Kavan Choksi notes that timing cryptocurrency patterns is incredibly difficult. Your best bet is to approach investing with a flexible strategy.
When Should You Hold?
It has become a cliché among online cryptocurrency groups to advise people to "Hold On for Dear Life" (HODL) until they get the desired return on investment. The high levels of volatility in the crypto market are neither an intrinsic benefit nor a detriment. According to Kavan Choksi, volatility is merely a normal part of the investment world. Knowing when to keep your purchase and trust your analysis rather than reacting based on emotions is critical to success.