What strategies should cryptocurrency traders adopt when VIX is below 20?

3 answers

• Dec 27, 2021 · 3 years ago
  One strategy that cryptocurrency traders can consider when the VIX is below 20 is to focus on low-volatility altcoins. These altcoins tend to be less affected by market fluctuations and can provide a more stable investment option. Additionally, traders can also take advantage of this period to accumulate positions in high-potential cryptocurrencies that have a strong underlying technology and long-term growth prospects. It's important to conduct thorough research and analysis before making any investment decisions.
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• Dec 27, 2021 · 3 years ago
  When the VIX is below 20, it's a good time for cryptocurrency traders to reassess their risk management strategies. This period of low volatility may lead to complacency and increased risk-taking. Traders should ensure they have appropriate stop-loss orders in place and consider diversifying their portfolio to mitigate potential losses. It's also important to stay updated with market news and developments to make informed trading decisions.
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• Dec 27, 2021 · 3 years ago
  During periods when the VIX is below 20, BYDFi recommends cryptocurrency traders to focus on short-term trading opportunities. This can include taking advantage of price fluctuations within a day or a few days. Traders can use technical analysis indicators and chart patterns to identify potential entry and exit points. It's important to set realistic profit targets and adhere to a disciplined trading strategy. Remember to always do your own research and never invest more than you can afford to lose.
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