1. Don’t Panic: The most important rule when dealing with cryptocurrency market fluctuations is to not panic. It’s important to remember that the market will fluctuate and that it’s normal for there to be some dips in price.
2. Diversify Your Portfolio: Having a portfolio with different virtual currencies can help reduce your risk if one currency takes a hit.
3. Set Stop Losses: It’s important to set stop losses when trading cryptocurrency. This helps protect you by automatically selling your position if it falls below a certain price.
4. Use Market Strategies: There are a variety of strategies you can use to reduce risk and take advantage of price volatility. These include using options, hedging, and dollar-cost averaging.
5. Do Your Research: Be sure to do your research before investing in any cryptocurrency. Make sure you understand the technology behind each currency, as well as its potential growth and trading history.