Buying and selling in the encrypted market require so much knowledge and expertise, the crypto market is full of risk and fluctuations, oftentimes novice traders lose their positions in the crypto market, compared to the stock market the crypto market depends on the speculations, how to do an investment that less risky, in case of market tubulation the changes in assets prices not impacted the positions of the crypto position holder, one approach is to use the methodology of hedging.

Hedging is an investment method in which a number of funds placed in different directions and maybe in the opposite directions, the traders benefited from simultaneous placement of multiple funds in unique and different positions, the purpose of this strategy is to minimize the risk of huge losses. Before the cryptocurrencies, hedging has always been financial creativity that maintains the good return of investment under a declined market.

Crytpo hedging also possible and will become a great tool to protect investor assets from adverse market conditions, however, hedging place some limits on earning but investors never lose all of their crypto assets due to a market downturn, in order to be a successful crypto investor you have to protect your investment from unknown market risks.

When using the crypto-assets as an investment tool, the investors must be known of the potential threats of investment, Crypto assets born without regulation, but completely speculative, there were no categorization and classification appeared from the government sources, the officials always refer to the crypto assets as the commodities, un-regulatory behaviors disturb the buyer and seller relationship, the protection is limited, investors in such situation rely on development projects, new ideas, and concepts.

Due to network congestion and minimum TPS of major blockchain networks causing a big loss for investors, if the investor tries to liquidate his earning then again he has to deal with delays and communication errors and these factors also cause huge losses for investors

Invest in the crypto market is not easy as people think, if you will uncertain about the crypto market condition then it is safe to sell all of your assets and close down all of your positions if not possible then try to reduce the crypto holding gradually, if you handle risk exposure then hedging is the great strategy. You need to understand the opposite positions not on market directions but to their current position, make sure to survey the liquidity assessment, the transaction speed and quickly convert the cash without too much price slippage, finally put all of your eggs not only in one blockchain, but you have to establish the positions in Bitcoin (BTC), Ethereum (ETH), and Litcoin (LTC), the diversified portfolio of your crypto assets is the secret of your success.

In the crypto market, the short selling and future have their own advantages and disadvantages, in short, when investor found that their assets will depreciate, the accurate advice here is to sell the assets and buy back at a lower price, this way the investor reduces the chance of the loss and persists his positions with a lower price, in contrast, the Futures refers to an agreement to buy and sell at scheduled time and date, the Future could also be sold before the agreed date.

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Source: https://medium.com/cryptocurrencies-ups-and-down/basics-of-crypto-investment-2cb4beeab73b?source=rss——-8—————–cryptocurrency