Capital management in cryptocurrencies

2023-12-17 07:02:00

Capital management in cryptocurrencies
By using capital management, you can prevent your big losses and easily compensate them in the next successful transactions.

Capital management in cryptocurrencies

In the financial markets, especially the cryptocurrency market, capital management means that if you enter a trading position; Whether for investment or short-term trading, if the price moves against your desired direction, you will not lose much.
By using capital management, you can prevent your big losses and easily compensate them in the next successful transactions.

For example, suppose you bought Ethereum with all your capital at a price of $3,000; Now if the price of this cryptocurrency reaches $1500; You lose half of your total money and you have to double your money to get back to square one!


Now if you do the same thing with capital management, what will happen?

You want to buy Ethereum and its price is 3000$. According to your analysis, if the price reaches $2700; can experience further decline; Now, if you buy Etterboom at $3,000 with only 10% of your capital and sell it at $2,700 when you change your mind, how much have you lost?
By doing this you only lose 1% of your total investment, which is much easier to recover than doubling your money!

 

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