One can't disregard the emotional strain that cryptocurrency holding (a slang word for long-term investment) can put even on experienced investors, especially at times of deep and rapid corrections that might occur even during the strongest uptrends and result in 30% - 40% drawdowns that are usually followed by even greater breakouts to the upside. What's even more nerve-wracking is the speed at which sharp reversals happen in these markets. corporations, so it takes significantly less capital to push the price in either direction, especially the price of altcoins with low market capitalization. In order to be a consistently profitable cryptocurrency trader or investor, you would have to forget about calm and steady trends of S&P 500 or gold and get used to the leapfrogging price action that occurs on all cryptocurrency markets, with the exception of stablecoins. These enormous price fluctuations happen because the overall cryptocurrency market capitalization is still relatively small compared to the capitalization of gold or top U.S. Being involved in crypto
requires having nerves of steel (or some other durable material) and high risk tolerance. The cryptocurrency market is much tougher than stocks or commodities markets because it's characterized by the wild volatility, which is inherent to all maturing markets. Sometimes, it takes only a couple of hours for the price to take a nosedive and disrupt the existing market structure. Due to the reasons mentioned above, along with such factors as the impact of cybercrime, the ever-toughening regulations, or crypto even state-wide crypto bans, Binance network issues, and hardforks, the price trajectory of certain cryptocurrencies could start moving like a loose cannon on shorter time frames and even fall out of the scope of our price prediction model for a short while. The proper risk management implies having a stop loss on all positions, the adequate sizing of these positions, the cautious use of leverage, the application of risk/reward ratio, and, of course, the market timing. Risk management is most certainly the best remedy against all unfortunate surprises that the cryptocurrency market might bring upon you. Remember that even though our BNB price prediction is the most accurate in the industry, crypto it doesn't cancel out the necessity of learning and applying risk management. In that case, don't indulge in panic and remember that such vagaries are the normality of the cryptocurrency market - nearly all erratic movements are smoothed out on larger time frames, and the price movement gets back within the confines of our forecast. Without it, you will be left at the mercy of volatile price swings that could inflict serious damage to your portfolio and leave you stuck in unfavorable markets for a very long time. Otherwise, the possibility of getting caught up in a panic sale or reckless buying caused by the fear of missing out is very high, btc and it will most definitely threaten the integrity of your investment portfolio.
But this is only the tip of the iceberg with regard to the amount of data that our algorithm sifts through every day and pieces together every bit of valuable information to produce the most precise short-, mid-, and long-term Binance Coin price prediction that has become the foundation for many profitable trading strategies and btc swollen (in the sense of them being profitable) investment portfolios. The combination of this data with the analysis of the price chart on different time frames, preferably the ones that are higher than the 4-hour time frame, should give you a clear comprehension of the present situation on the BNB market and how it has been developing.
The recalibration resulted in CVIX becoming a more versatile indicator in terms that it is capable of gauging the volatility and BNB forecasting the price shifts over many months - the latest updates made CVIX capable of anticipating the market behavior over the next few years, as you already saw in the 5-year price prediction above. Initially, this indicator was used to assess the market sentiment and forecast the volatility for the next 30 days, and it worked particularly well with the S&P 500 index. But the realities of cryptocurrency trading differ significantly from that of stock trading, so our developers had to recalibrate it to meet the demands of the volatile market. The foundation of the CVIX lies in the classic stock volatility indicator dubbed the Market Volatility Index (VIX) that first saw the world in the late 80s and had subsequently been adopted by traders and analysts from the Chicago Board Options Exchange that was later rebranded to Cboe Global Markets. CVIX offers three volatility modes: red, yellow, and green, which showcase different expectations with regard to volatility and the scope of market movement. When CVIX is red , it means that the market could get violently volatile with enormous price swings that could occur to both the upside and the downside. The red mode, which stretches from 61 to 99 , hints at the extreme volatility; the yellow one ( 31 to 60 ) is seen during the period of medium-high and medium volatility; the green mode suggests the lowest volatility ( 1 to 30 ) that is seen during flat or ranging markets or on the stablecoin markets. In that case, an experienced cryptocurrency trader could engage with a large stack, pull the stop loss closer to the determined support/resistance levels and consider trading with the risk/reward ratio of 1:3. Obviously, the red CVIX implies that putting money in BNB or any other cryptocurrency for that matter is very risky at that point in time - it's better to wait until the volatility wears off. Those of our readers who trade stocks know that this platform accommodates only the finest time-tested trading instruments. At times when CVIX shows yellow , the volatility remains quite strong but not extreme, which might be deemed as a good period for some swing trading if you catch the market at consolidation and right before the breakout in either direction. The green CVIX is associated with the calmest markets that don't showcase any considerable swings - those markets are most often in the ranging or consolidation mode. But if you do feel the urge to enter the market, exercise an iron discipline with regard to risk management, which means no mental stop losses, dial down on the position size significantly, and consider increasing the risk/reward ratio. This also might be a good time to increase the size of the crypto portfolio in anticipation of a breakout. The green CVIX is commonly seen on the stablecoin markets, but BNB and other cryptocurrencies can turn green from time to time too. Mental stop losses are acceptable in these conditions, along with larger entries, but don't get your hopes up too high with regard to the risk/reward ratio. When CVIX is green, you won't get a reward larger than 1:1.5.