Cryptocurrency trading is becoming more and more popular with every tick of the clock. For those who’ve been actively investing or trading in the stock market, you might be aware of this new “golden” opportunity. Buying and selling cryptocurrency is one of the channels you can use to grow your portfolio and diversify your investments. But given the volatility and speculative nature of the crypto market, you have to be keen on when you buy, hold, or sell your coins. Those who have some experience in crypto trading may be aware of the various slang expressions such as HODL, and SODL, and where they apply. But assuming you are just getting started, how do you know when to sell or buy your cryptocurrency shares? Here are a few tips that can help you become a better crypto trader.
1. If a Major Exchange Drops You’re Currency – Sell
When trading crypto shares, you will obviously be doing so via a certain stock exchange market. When a major exchange like Coinbase no longer carries your cryptocurrencies, there’s a big chance that others will drop it too. To avoid losses or getting stuck with valueless crypto coins, you may want to consider selling. There’s no point in HODL-ing your coins only to end up frustrated with a dead cryptocurrency. This is an important tactic you can use to minimize losses as an investor in cryptocurrency stocks.
2. Using Technology and Research
When investing in any kind of stocks or shares, you have to be ahead and informed about major changes that take place in the market. Your returns and gains depend on it. Since cryptocurrency trading is still a new thing, you may not find a lot of resources to guide you into making better investment decisions out there. Nonetheless, you don’t have to do all your research manually with the Crypto Capital available for your rescue. If you read more from the Crypto Capital review by John Parker, you will understand how this tool can help you make better buying and selling decisions as a cryptocurrency investor. It provides tons of research and resources you can use to make your trading decisions. Additionally, the service also provides a master class crash course to subscribers who are just getting started in the crypto world.
When trading shares, sometimes you just have to rely on your instincts. If you have a consistent gut feeling that your currency is going to appreciate, you can just go ahead and buy it, then HODL. If it’s going to hit a major decline, it could be the best time to sell and invest in something else or wait until the price appreciates. However, you will want to restrain from panic-selling as much as you can, given the high volatility of cryptocurrency. Panic-selling simply means selling out of pressure, especially when your currency consistently takes a declining path. It could lead to a lot of losses in the long term.
4. Your Cash Needs
If crypto is the only way you make ends meet, you may not have a choice but to sell a few coins when you need cash urgently. However, it is a wise idea to hold some of your coins, and watch how the market performs over the next few days or so. Of course, forecasts can help guide your trades in this case. When it comes to buying, of course, you will want to buy when the price is lowest. When doing so, however, keep watch of the history to ensure that the currency is not drying out. In this case, you will be using the Buy Low –Sell High approach. In essence, it is best to buy a popular coin when the rates go down below the average value based on its historical projections. This way, you minimize the risk and maximize your chances of making huge gains from a sale in the future.
5. Sudden Peaks – Sell
When the value of your crypto asset suddenly peaks, it is almost obviously the right time to sell. This is according to a recent study at Yale, which indicated that selling a digital currency or asset a week after a sudden peak in price has a lower risk. So long as the price increased by more than 20 percent, sudden peaks are a great way to profit out of cryptocurrency shares.
The secret to success in cryptocurrency assets is to know why you want to buy or sell in the first place. Once you figure this out, you will know the best time to sell, hold, or buy. The above few pointers can help make you a better investor in the virtual currency market.