Digital Wealth Group

How to Use Volatility to your Advantage

How to Use Volatility to your Advantage

Volatility is one of the defining characteristics of this crypto game, but it puts so many people off entering. They simply don’t want to deal with the roller coaster ride it creates. But volatility is the single reason we can make such incredible gains, and if we didn’t have the volatility, we wouldn’t have the gains.

It really is that simple.

We can approach crypto volatility in one of two ways.

  1. We can fear it, become obsessive and worry ourselves over every little dip (not advised).
  2. We can ignore the day-to-day price action and look at the bigger play.

The way I see it, if we apply a negative frame to volatility, we’re likely to stress ourselves out, and we won’t reap the full benefits of this asset class. But when we embrace the volatility and learn about market cycles, we can’t be thrown off our game when our portfolio dips, because we know that it’s built-in. The market will always drop 10-30% on the way to the next all-time high. We simply need to hold through the volatility.

Remember, there is currently no other asset class in the world that can match the gains from crypto, so don’t be afraid of it – learn to view it as your secret weapon. Mastering this concept will drastically improve your results – in this market cycle and in the future.


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