Crypto Investment: When to Buy? When to sell?

Bitcoin investment and any cryptocurrency investment require knowing the buying and selling points. Bitcoin is equivalent to the index of the entire cryptocurrency market. The key to crypto trading lies in timing—knowing when to buy and when to sell.

The secrets of crypto trading can be summed up in two sentences: Keep losses as small as possible, and let profits run.

This means that if you notice something isn’t quite right with a cryptocurrency’s trend, cut your losses immediately and minimize them as much as possible. Once you have a profit, you must be patient and let small profits grow into big ones.

The first priority when choosing a buying point: Select a stop-loss point.

There are three bases for buying cryptocurrencies: value analysis, technical analysis, and market cycles.

Some people buy cryptocurrencies solely based on value analysis, that is, researching the project’s intrinsic value without considering other factors, like Warren Buffett. Others rely exclusively on technical analysis, believing that the market’s view of the cryptocurrency is fully reflected in its price and trading volume changes. Most traders fall into the second category.

A cryptocurrency’s price reflects the future prospects of the company behind it. A more suitable approach is to use value analysis to select cryptocurrencies. After finding a cryptocurrency, your operations mainly rely on technical analysis. Then, follow the principle of minimizing losses when you’re losing money and maximizing profits when you’re making money, while setting timely stop-loss orders.

Imagine you’re a major player. How would you manipulate public sentiment?

The tricks of major players are actually quite simple. When they want to buy, they either do so quietly, in which case you’ll notice a slight increase in trading volume but not a significant one, and the price gradually rises step by step. Or they create panic selling among the public by engineering what everyone considers a good selling point. When major players want to sell, they either buy first to drive up the price sharply, triggering the public’s greed to join in and push the price higher, or they create what everyone considers a good buying point.

The process of finding the inflection points of cryptocurrency price fluctuations is the process of learning cryptocurrency trading. You need to continuously discover inflection points that suit your personality and risk tolerance.

Considerations for when to sell a crypto can be divided into two parts: First, how to choose a take-profit point; second, how to choose an appropriate selling point to realize profits after you have a profit.

It’s difficult to catch the beginning and end of a crypto’s price movement. Traders should learn how to capture the middle 70% of the price range. Don’t try to find the highest point of a cryptocurrency’s price; you’ll never know how high it can go. Deciding when to sell is more difficult than deciding when to buy. When you’re losing money, you hope to break even; when you’re making money, you want to make even more. Your mind is constantly in conflict. For beginners learning cryptocurrency trading, having a mindset of “not selling unless I make a profit” is extremely detrimental. With such a mindset, failure is almost predestined.

The simplest way to decide when to sell a cryptocurrency is to ask yourself, “Would I be willing to buy this crypto at this moment?” If the answer is no, then consider selling it.

Pay attention to warning signs. As you gain experience, you’ll gradually develop a sense that it’s time to sell. Don’t ignore this intuition; trust yourself.

Protecting your capital comes first. Under any circumstances, if the crypto’s price falls below your buying point, you should consider setting a stop-loss point. The prerequisite for making money is not losing money. For example, if a cryptocurrency rises from 10to12, your selling point should be above 10,sayat11.

Trend followers often die in consolidations; range traders often die in trends; short-term traders often die in sudden price surges; those with methods often die in execution; those relying on subjectivity often die in feelings; and those without methods often die in random trading. Please find your own category.

When to buy and sell cryptocurrencies is just one part of cryptoc trading. How much risk to take and how to allocate your assets are also important topics to consider. Crypto trading is actually a systematic endeavor.