Managing risk in the volatile altcoin market requires a balanced strategy that combines technical indicators and market sentiment analysis. While technical indicators like moving averages, RSI, and MACD help identify trends and entry/exit points, market sentiment can provide insight into broader market conditions that affect price movements, especially during periods of hype or panic.
For effective risk management, setting stop-loss orders and defining clear entry/exit strategies are essential. Additionally, diversifying your portfolio helps mitigate the impact of extreme price swings. Staying informed through social media, news, and on-chain data platforms can further help gauge sentiment shifts.
How do you combine these strategies to navigate the wild price fluctuations in altcoin markets? Any specific tools you rely on?