Periods of volatility are an inevitable part of the cryptocurrency market. In order to not only preserve your assets, but also try to multiply them, a well-thought-out strategy is important. Vugar Usi Zadeh, COO of one of the largest crypto exchanges Bitget, shared his opinion on how investors should best act in an unstable market.
Periods of volatility are an inevitable part of the cryptocurrency market. In order to not only preserve your assets, but also try to multiply them, a well-thought-out strategy is important. Vugar Usi Zadeh, COO of one of the largest crypto exchanges Bitget, shared his opinion on how investors should best act in an unstable market.
«When the market is volatile, it’s important not to panic. Traders should think not only about how to protect their assets, but also how to minimize risks and work with them strategically,» says Vugar Usi Zadeh. In his opinion, the key to success is diversification and competent risk management.
At such moments, traders should pay attention to several strategies:
Diversification and stablecoins: It is worth transferring a portion of your assets to stablecoins such as USDC or USDT. This creates a protective buffer against market volatility and allows you to participate in stable products with returns, such as Bitget Savings, which offers competitive APY rates. It is a kind of financial safety net in times of instability.
Hedging and Futures: Using futures contracts and inverse perpetual swaps can help protect long positions or even profit in a falling market. These tools allow for more flexible and secure trading.
Automation with bots: To reduce the impact of short-term price fluctuations, you can use automated bots for a DCA strategy. This will allow you to gradually accumulate assets such as Bitcoin or Ethereum, while minimizing the risks associated with sharp price jumps.
Copy Trading: If you are inexperienced in trading or unsure of your abilities in a volatile market, Bitget’s Copy Trading feature will help you copy the strategies of top traders who make money in volatile conditions. It is a great way to learn and also reduce your risks.
«Cryptocurrencies give everyone the opportunity to participate in the financial system. When the market becomes unstable, it is time to make informed decisions and develop a strategic approach,» emphasized Charlie Lee, the creator of Litecoin.
That is, easy and unfounded, hasty decisions in a falling market are a sure «death» for an investor. Study, think, calculate!
News related to world figures such as Donald Trump, Volodymyr Zelensky, and Elon Musk can have a significant impact on the cryptocurrency market, causing sharp price fluctuations.
For example, the recent scandal between Ukrainian President Volodymyr Zelensky and US President Donald Trump has shaken the market. As a reminder, on February 28, 2025, a tense meeting took place in the Oval Office of the White House, during which the parties publicly exchanged accusations regarding the war in Ukraine.
These events have created political uncertainty, which traditionally affects financial markets.
For example, between February 28 and March 2, 2025, the value of Bitcoin (BTC) fell from $95,000 to $85,000, a 10,5% drop. Similarly, Ethereum (ETH) fell from $2,500 to $2,200, a 12% drop, during the same period. It was not until March 3 that BTC and ETH prices stabilized again.
These developments reflect a typical investor response to political instability: the desire for liquidity and risk reduction leads to cryptocurrency sales. However, it is worth noting that in the long term, the impact of such events on the value of cryptocurrencies may be limited given their high volatility and independence from traditional financial systems.
One of the most striking examples of the influence of world leaders on the cryptocurrency market is also Elon Musk. His tweets often cause significant fluctuations in the prices of Bitcoin and Dogecoin. For example, when Musk announced that Tesla would accept Bitcoin as payment, this caused a short-term increase in the cryptocurrency. However, his statement that Tesla would stop using Bitcoin also led to a drop in the rate. Musk has long become a symbol of unpredictability in the market, and his words can literally change trends in cryptocurrencies.
During times of «market swings,» scammers come out into the world. People start to panic, and this is definitely the time for petty (and not only) thieves.
Investors should be especially careful not to run into scammers or fall into the trap of risky schemes. Vugar reminds us that it is important to beware of these «red flags»:
Phishing: Do not trust messages and links from unknown sources. Bitget never contacts users via private messages.
Excessive leverage: 100x leverage is a «poker bet» that can lead to significant losses. Moderate leverage (such as 5x or 10x) is best.
Pump and dump: Tokens with low liquidity and over-promises are often part of market manipulation. Be careful with such assets.
Withdrawal issues: Test the platform with small withdrawals to make sure the system is working properly.
