Cryptocurrency Investments: Tips and Tricks to Maximize your Returns
People who know crypto are well aware of the returns they can have. When you pencil out your estimations for holding the assets for long, it turns a profit. A phrase says, ‘you can’t educate a pork’, but the one seeking bottom fishing with ears open knows when to grab the opportunity. That’s where the traders in the crypto world win the day. Cryptocurrencies are tangible but exist in the virtual world. By using blockchain technology, cryptography and computer networks, this digital currency is peculiarly shaping the future. It is a one-horse race where you invest, hold and reap a higher ROI. Therefore, the time to shy away from cryptocurrencies is gone. Like other crypto platforms globally, cryptocurrency platforms in India came out of their comfort shell for diversifying one’s portfolio in the crypto sector for investing. They found highly volatile crypto markets eye-catching with intend to make serendipitous gains. Today, let’s drive through the road and know all tips and tricks to make money in the crypto world.
Approaches for Making Money Through Cryptocurrency Platforms in India
Making hay when the sun shines is the sign of an expert trader. But not everyone can be conscious of all the signals the Japanese Candlesticks beholds. To understand the liquidity of a cryptocurrency, you must have the patience to a standstill until you land a windfall. That’s the first half of the story. Once you flip the coin, you find other potential tricks to make money through cryptocurrency platforms in India. Let’s sneak-peek into those tricks.
Arbitrage
Cryptocurrency offers an optimal way to have a walk on the street paved with gold. The most obvious of these is through arbitrage. It is a purchase and sale of the same asset in different markets. Arbitrage exists as a result of market inefficiencies, and thus, it helps you reap profits from diminutive differences in the asset’s listed price.
To make the definition more understandable, think of it this way. When any trader purchases any stock, commodity, or currency at a given price and concurrently sell out the asset purchased in a different market at a higher price is known as arbitrage. It creates a risk-free opportunity for traders to make a profit. Cryptocurrency investments in India are risk-free, but it’s hard to profit from pricing errors in the market due to technological advancements. All it is a matter of a fraction of snapping your thumb with your middle finger. If the opportunity grabbed you turn a profit, else you’ll lose your head.
Pairs Trade
It is a trading strategy of matching a long position with a short position within two stocks at a high correlation. In other words, Pairs Trade is a trading strategy that uses both statistical and technical analysis and involving the pairing of assets that can be held or sold on stocks that are rigidly correlated to one another with the purpose to turn a high profit irrespective of the direction in which the market is moving. For instance, you want to buy BTC/LTC and assume you have both the cash in hand and BTC in your wallet. Of course, one can buy LTC through fiat currency, i.e., USD, but what’s profitable here is you must know. The day you thinks of buying LTC, the price of BTC goes up by 10 per cent, but that of LTC stays the same. In this case, if you buy LTC using BTC, not USD, you can purchase 10 per cent more LTC than what you’d buy using direct dollar trade. These tricks have higher profit on cryptocurrency investments in India or globally.
Volatility
To understand the concept of volatility, let’s choose Bitcoin. But firstly, let’s start with a definition. Volatility is the statistical measures of dispersion for a given security or market index. In other words, volatility refers to the unpredictability as per the size of changes in the security value. In most cases, the higher the volatility, the riskier the security. By this, we mean that the security’s value can be spread out over a more extensive range of values; this means that the price of the security can drastically change in a short period in either direction. A lower volatility means the security’s value will not change drastically and tends to be more steady. For instance, you plan your retirement portfolio. You are looking for a less volatile market with uniform returns. You plan out two stocks as follow:
Stock A has a beta coefficient of .93 that makes it less volatile.
Stock B has a beta coefficient of 1.63, which makes it significantly more volatile.
Which one will you choose? Yes, you got it right. The less volatile stock will help you reap steady returns even if you prefer cryptocurrency investments in India.
Direct P2P Transactions
It is a decentralized communication model between the peers named nodes. Peers can communicate with each other without the need for a central server. It will not be a falsity to claim that cryptocurrency investments in India and globally for business transactions are a deal of profit. The peer-to-peer transactions are maintained by a distributed network of computers. Each node holds a copy of the files, so the computers don’t have a server or a central administrator. These stored files act both as a server as a file. These files have their own data storage hard drives despite a central server. Therefore, each node has access to its back and forth files and is accessible to upload and download these files.
Balance Investment Risk
Another smart way to turn a profit is by balancing one’s portfolio, and hence you minimize the risk. If you use this strategy with keen consideration to the known risks of shares, equity, real estate and others, it helps you reap the most profitable deal of today. The investment’s diversification gives a seat cushion, but it is beneficial to recognise risks in crypto because of the widely fluctuating prices, no consumer protection, and never-ending frauds.
Why is Flitpay the Best for Trading and Cryptocurrency Investments in India?
Flitpay is a one-stop-shop for all your cryptocurrency needs. We have deployed a navigational cryptocurrency platform in India that offers a hassle-free trading experience to our traders. With a diversified market place, we bestow all cryptocurrencies and trading in pairs facility to let our trader walk on the street paved with gold. Every coin has two sides, the same as here. We offer you all the varieties to empower your portfolio accordingly. With some standard tools to calculate and anticipate the market trend based on its liquidity. Flitpay is known as the best platform for cryptocurrency investments in India due to its high-end security empowered wallet. The wallet is designed and deployed in such a way that it is capable of overcoming uncertain conditions in minutes without any sought of traders loss. Start your journey as a crypto trader with Flitpay today.
In case if you have questions, visit our FAQ page or you can directly email for better customer assistance.
Flitpay is a cryptocurrency platform in India that allow traders to turn a profit within a snap. With high-end security wallets, as a trader you do not need to worry about your profits. We assure you to keep your profits safe.
Original post: https://www.flitpay.com/blog/cryptocurrency-investments:-tips-and-tricks-to-maximize-your-returns
The post Cryptocurrency Investments: Tips and Tricks to Maximize your Returns appeared first on FlitPay.
Read more: https://blog.flitpay.in/cryptocurrency-investments-tips-and-tricks-to-maximize-your-returns/
Text source: FlitPay
