The Current Market - A Perfect Example

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5 Jul 2024

Markets & The Weather
Just as a beautiful day can suddenly turn and become a stormy brew of misery, markets can whipsaw, leaving market participants in shock. Perplexed, many investors get shaken out, choosing to stomach a loss rather than incur a further loss. However, that’s how the game is played, and only strong hands will succeed regardless of the market. All markets are volatile… some more than others.
Dedication to the disciplines of financial markets is imperative if you wish to avoid the above-mentioned group of investors. this group of investors usually leaves the market at the worst possible time and arrives at the worst possible time. You see, the committed investor remains in the market and chooses to apply time-tested practices and strategies.
Investors with the “right” amount of capital but with the “wrong” mindset often end up in a similar situation as those without meaningful capital. It’s all about playing by the rules. No matter how much capital you may have on hand, the rules remain unchanged. Many situations in life can be altered, manipulated, or influenced by money. However, unless you are a mega whale, the rules will not be broken on your behalf.
Even In A Bull Market
An approach I have always advocated is to maintain a stablecoin reserve or a cash balance that can be deployed at opportune times. The current market is an excellent example of how crucial this idea is. No matter the market, there will always be amazing opportunities to pick up altcoins at amazing discounts. Most altcoins are down between 50% and 70% from their recent peaks.
The fact that a stablecoin such as HBD offers stakers a return of 20% APR makes this idea even more appealing. Despite the current volatility, HBD is currently trading just below $0.98, which is pretty stable considering that many altcoins have dropped as much as 20% in a single day. Even though HBD can be a little volatile it usually returns to its peg rather quickly, a dynamic day traders could take advantage of.
If possible, it’s important never to exhaust your investment capital. I know it’s easier said than done, but for those who can, it’s an excellent practice to adopt. Just look at the amazing discounts currently on offer in the altcoin market. The deployment of capital at this point would be an excellent move, even if prices were to edge lower. Having stablecoin reserves is always a smart move.
Remember, all bull markets experience heavy corrections, and it’s at these moments in the journey that you need a bag of stablecoins ready to deploy. Certain DeFi strategies can also help to generate a little yield while you wait on the market. The effective deployment of capital is a topic I have often addressed in various blog posts and it’s a crucial aspect of investing that many overlook.
Final Thoughts
Bitcoin may appear a little fragile on the weekly chart. However, regarding the monthly, it still appears relatively strong. Currently, the market is a little fragile, but still within an acceptable range regarding the continuation of the current bull market. However, time is running out, and hopefully, we will see a serious surge between July and August. Anyway, enjoy the weekend and I will catch you next time!

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Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.