What are the best ways to manage cryptocurrency volatility and uncertainty?

Since m heading research at Delta exchange, biggest exchange for Crypto options and peps futures - i have seem it very closely for last 2 years. A- try to remain hedged as much as possible specially during events. B- keep close watch on events like, FOMC, FED, CPI. C- Try out spreads during events times, you can get credit spreads with good premium, ideally 65-100$ is good.

Managing the volatility and uncertainty of cryptocurrencies requires a mix of traditional investment wisdom, specific knowledge about the crypto market: 1) Educate Yourself: Before diving into any investment, especially something as volatile as cryptocurrency, it's essential to understand the market. This includes knowing about the technology, understanding different coins, and staying updated with the latest news. 2)Dollar-Cost Averaging (DCA): This strategy involves investing a set amount in regular intervals regardless of the price. For example, if you invest $100 every month, you buy more coins when prices are low and fewer when they're high. Over time, DCA can reduce the average purchase cost, dampening the effects of volatility.

With crypto being new to most people, before diving in it's important to understand the different types of wallets and where you will actually store your new digital assets. There are custodial wallets and non-custodial (or self custody) wallets. Custodial wallets mean someone else, typically a centralized exchange, is the custodian of your digital assets. While this may be necessary to make the actual trade or purchase, for storing purposes you should transfer your assets to a non-custodial or self custody wallet, where you are the custodian and you hold the private keys (also known as seed recovery phrases). There are also hardware or cold storage wallets where you can transfer and store your digital assets offline.

Volatility becomes game plan. Once you understand the basics. Invest what you afford to loose, the phycholgical stability is paramount in any investment particularly in volatile assets like crypto currencies. Knowledge is the key to understand the fundamental aspects of any project. There is no substitute to understanding the project by putting your own efforts. Try to understand the project by reading white paper and research material and engaging with community. Critical thinking is important. Keep watch on technical aspects like sentimental analysis to understand key indicators. And set your expectations. Learn to know how to safekeep your crypto Once you have enough understanding of such a key aspects Volatility becomes game plan.

No matter if it concerns stocks, bonds, derivatives, real estate, crypto or any other asset there are some basic rules that you have to follow in order to reduce the risk. 1. Diversification. Your portfolio must includes at least 5 similar assets. For ex 5 stocks, 5 bonds, 5 crypto currencies, etc. 2. Always have a cash balance. Remember, cash is the king. 3. Set a profit taking target and always execute it. Let the others take profit too. 4. Never short an asset. Never. 5. When an asset drops sharply never buy at dip. The enemy of the cheap is the cheaper. 6. Always DYOR 7. Invest only the funds that they won't affect your life if you lost them all.

Since the market has grown considerably in the last three years I observe that even equity markets show its impact on crypto markets along with the global conditions. Hence you have to be more holistic when researching on crypto

Applications and utility functions built on each chain will truly help unlock the real value. Researching such projects and applications can help make the right investment decisions. Coming up with the value of cryptocurrencies is inherently tricky, as traditional assets do not back tokens. Hence, the price of crypto tokens are generally driven by investors' sentiment. Tokens such as etherum may hit high value over the next two years as it becomes more widely used in blockchain-based covenants known as "smart contracts”, gaming and the "tokenisation" of traditional assets takes place.

Doing your own research and educating yourself is vital in cryptocurrency. I like to know about utility. Does the project actually do anything or is it just based on a funny meme?

One popular strategy is to have a target price at which you plan to sell your asset and then stick to it, regardless of whether the price goes up or down. By sticking to this plan can help you to avoid the temptation of holding on to an asset for too long and having FOMO (Fear of Missing Out) for not Taking Profits.

I'd also say that it's incredibly important to not allow your emotions to deviate you from your plan once it is set. If you've done a lot of research and feel very good about the future of an investment from a more macro standpoint, don't let short-term volatilility shake you out of a position you want to hold long-term.

Also don't put all of your funds into Defi or stablecoins. Defi protocols have a history of being hacked and stable coins aren't always pegged to the USD. Learn from the pain and mistakes of others as well!

Most important is to withdraw your digital assets and store them in a self custody wallet or a hardware wallet. It is important since till the time the funds are with an exchange they are unelder their control. Hardware wallet gives you complete control.

Buying The Dip is another term adopted by the cryptocurrency community. Its not a new term, but the volatility of crypto makes it widely relevant. The idea of this strategy is that by buying assets when they are at a lower price, investors can potentially realize a greater return when the prices eventually rebound. Its important to have a clear understanding of the asset and its underlying fundamentals. This is especially popular with Major Coins like Bitcoin.

Staking is also a good option to manage your risk, when/if able to do so given what crypto you're invested in. Getting an extra 3% - 8% can offset some of your losses in a bear market and compound your gains in a bull market.

Take and protect profits aggressively. CoinBase has useful data in their Average Hold Times. It shows you that the average person isn’t even holding Bitcoin for a full year on their platform. A lot of crypto influencers preach holding or “HODLing,” but those guys are usually dumping on their subscribers while they’re saying that. Set a target, take profits when you hit it. You should at least consider pulling your original investment to allow yourself to ride the rest of the volatility with house money, or a “moon bag.”