After about six months, you may study the market and realize that there is a more promising currency. Even if you have decided to wait longer, you can decide to sell and buy the most promising cryptocurrency. When investing in stocks, a good rule is to buy and hold for at least five years. Cryptocurrencies are a completely different and much more volatile market, so traditional rules don't always apply.
Keep reading to find out when to sell crypto and the factors to consider in this decision. You don't even have to be a stock trader to understand the importance of letting things go. Most of us have probably done a garage sale at some point, and selling crypto isn't much different from that. You hold on to something as long as you can and then, when the time comes, you slogan it to another person who sees more value in it.
First of all, there is absolutely no guarantee that an action will ever return. Second, waiting to break even where gains equal losses can seriously erode your gains. Of course, we understand the temptation to be healed, but reducing your losses may be more important for long-term benefits. When in doubt, hold (or “hold” as some say).
With everything that is happening and that 25% goes up and down daily, keeping could be the best option. This is particularly the case if you have only invested a relatively small amount and can overcome short-term changes because you believe that in the long term, one or more of the cryptocurrencies are here to stay and will become a central part of the financial ecosystem. Instead, start taking a share of your profits in the 30% incremental range. Rather than expecting an incremental gain of 50% or 100%, focusing on a smaller increase will make it more likely that you won't be caught up in a demoralizing 20% to 40% correction that can hit the rapidly changing cryptocurrency market.
To take out and optimize your profits, sell between 5 and 10% each time, depending on the size of your shares in that particular cryptocurrency. If the coin has earned more than 30% since you bought it, consider selling a small percentage each week. Blog) 3 Ways to Manage Your Cryptocurrency Portfolio with Profit and Loss Calculations. If you want to make a long-term investment in cryptocurrencies, you should keep your digital assets away from trading platforms because they are vulnerable to piracy at any time.
The best option to preserve digital assets is to purchase a hardware wallet. Hardware wallets are offline wallets that provide cold storage for your cryptocurrencies, making them impossible to hack. Ledger Nano S is one of the best hardware wallets in the world that allows you to store a large amount of cryptocurrencies, as it is safe and the wallet can be easily recovered. Although these returns are unlikely to be seen again, cryptocurrencies could continue to outperform traditional investment markets in the near future.
Now that you have a basic understanding of when you should take out your crypto profits, let's move on to how you can optimize your crypto profits. If you've made a decent profit, which means more than tripling or quadrupling your initial investment based on the latest prices, given the recent volatility, many personal finance experts say it might be a good time to sell up to 50% of your shares equal to your original investment. Currently, investing in cryptocurrencies in the long term has been proven to be profitable, but it is important that you know the market before investing. Trading strategies and activities are not a safe formula to win, and you should do DYOR before engaging in any trading or investing activity in the highly volatile cryptocurrency market.
A smart rule of thumb is to have no more than 5% to 10% of your investment portfolio in the cryptocurrency market. Whenever you invest in a cryptocurrency, make sure that you have thoroughly researched it and that you think it is a solid long-term investment. You can have a daily or monthly schedule if that works for you too and, through major cryptocurrency brokers, you can easily implement this recurring investment approach for any currency they offer. .