Cryptocurrencies are one of the most volatile asset types that the average person can invest in. Over the past few years, the value of these currencies has swung up and down as important developments take place for this new type of currency. Because of the great rewards and hazards that come with investing in such a dynamic asset, it is very important that any trader be constantly aware of what the asset is doing. One of the best ways of doing this is through having some sort of app that can notify one of any developments related to these currencies. This article will attempt to further explain the value of such a crypto alerts app.
The Dynamism of Cryptos and Avoiding Downturns
As has already been stated, cryptocurrencies have seen great volatility on a month by month and even on a day by day basis. Over the past few years, JP Morgan Chase has released its own cryptocurrency, Facebook attempted to launch a cryptocurrency, cryptocurrencies have been criticized sharply by the US Treasury Department, and derivatives contracts are now being sold on some more traditional cryptocurrencies.
Very few other asset classes have seen such dynamism and development over the past few years. This underscores the need for reliable information on the status of these assets on the part of traders. Some traders get this information simply by checking their portfolio every 15 minutes or so. This is a solution which many people adopt and although it does represent a responsible attitude towards these assets – it is perhaps not quite the best way to do things.
Not only does checking your portfolio frequently take a good deal of time, but it also interrupts your other work and social interactions. Additionally, with assets as dynamic as crypto the value of one’s portfolio can easily fluctuate by 5-10% in a 15-minute time frame. These fluctuations can be very damaging.
These problems can easily be solved through the use of a crypto alerts app. With such an app, one no longer needs to constantly check the prices of all the different currencies which they own. Furthermore, should the value of any one of their holdings go down they can act immediately and not have to wait until they next check their account to find out about it.
It should also be said that there is a very high chance of continued volatility in cryptocurrencies. More banks might follow in JP Morgan’s footsteps in releasing their own cryptocurrencies and it will be interesting to see what Facebook does going forward. Although, it should be noted that these cryptocurrencies do have major differences with more traditional cryptocurrencies.
Exploiting Opportunities with a Crypto Alerts App
It should be said however, that any crypto alerts app does not only offer the trader protection when things go wrong. It also affords him the opportunity to act upon investment opportunities which he might have otherwise missed.
More specifically, very often traders will know of certain strategies for trading cryptos which go unutilized
simply because they were not able to track the assets which the strategies depend on.
Some well know examples of these sorts of strategies include finding relationships between certain assets, such as if Bitcoin’s value went up every time the US dollar’s value went down. Another example would be if Bitcoin’s price fell every time it gained too much value in too short a time. Strategies of this sort are well known among traders; however, they go unimplemented because they cannot track all the necessary assets at all times of the day.
A crypto alerts app allows the trader to take advantage of these sorts of opportunities. All he has to do is at some point in the day simply set the alerts which will let him know when to implement certain strategies. After he has done this, he can go about his day and will be notified when any opportunity arises.
Cryptocurrencies are a very dynamic asset that requires close monitoring in order to trade successfully – monitoring which can best be achieved by a crypto alerts app. Not only is this necessary to avoid losses but it is also necessary in order to capitalize on opportunities that would have otherwise been lost. It is hoped that this article has offered insight into this topic.