Exit Strategies in crypto world
Crypto market may face the same situation in next couple of years. This scenario necessitate the importance of defining exit strategy from crypto world. It is a fact that crypto market is one of the most volatile market of the world where pump and dump is part and parcel of the market. In such situation, importance of exit strategy increase. Now, the question comes in our mind how to make exit strategy.
Before joining crypto world you must know about the objective of your investment. How much profit or loss is acceptable to you. Defining your limits will help to overcome emotional decision. Controling emotion is very important in crypto world. It save you from greed and impulsive decision which may create huge loss.
There is no need to love your crypto asset. Buying at lower price and selling at higher price is one of the effective way of exiting strategy.
You can dynamically move the exiting strategy by applying stop loss to your investment. Stop loss is one of the effective way of reducing the risk with your investment. Stop loss facilitate you to sell your asset at loss but comparatively at higher price which means it reduce the risk of market volatility.
Another point of exit strategy is try to withdraw your initial investment. It is only possible if you take the profit on regular basis. Little profit is far better than a big loss. Booking profit is a good exiting strategy. I am not in favor of withdrawing all your investment at once or sell your coin at big loss. it is better to take partial exit, so in case if the price of coins go up you may earn decent profit. Try to recover your initial investment and than play with the market.
Dollar cost averaging is an other important way of exit strategy. Dollar cost average give you opportunity to buy coins at lower price which reduce your average buying cost. I am not in favor of doing Dollar Cost average on meme coins but it is important to do dollar cost average on a project which has a good used case. Dollar Cost average is actually a launchpad which helps to multiply your profit during bull run.
In the end I would like to admit that there is no single formula of success in crypto market. In order to become successful in this world you must keep enhancing your knowledge and skill. Good technical analysis may help you to gain lot from the market. It is only possible if you do consistent efforts. I hope you will find my post useful. By the way what is your favorite exit strategy?
This is it for my today post. Wish you all a very happy, healthy and prosperous life ahead. Have a nice time.
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Crypto demands alot of patience and greed and fear free trade
Checking on history and graph is as important as investment is
Informative post
Having a target in mind when to sell is the most important thing, Otherwise, you can't get out of this market. Always be happy with what you got and never regret what you haven't got.
We ourselves did not understand all his words before and we have also lost a lot because we did not take profit. Today things are great but their value has completely disappeared. Those who extract profits.
Do not fall in love with your investment is how the saying goes.
This holds true for crypto as well. happy investing and regular posting :)
https://twitter.com/LovingGirlHive/status/1684830967117279233
Withdrawing one's initial investment when the opportunity presents itself is my favorite exit strategy. Taking profits is important and we should try to not get too attached to our investments. DCA is also a good exit strategy, as it allows one to gradually take profit from their investment.
https://twitter.com/lee19389/status/1684905453388754944
#hive #posh
I agree that it's important to have a clear exit strategy before you invest in any crypto project. You need to know how much profit you're looking for, and when you're going to sell. It's also important to be prepared for the possibility of losing money, and to have a plan for how you're going to handle that.
I like your suggestion of using stop losses to reduce your risk. This is a great way to protect yourself from big losses if the market takes a sudden downturn.
I also think it's important to take profits on a regular basis. This is especially important if you're investing in a volatile asset like crypto. By taking profits, you can lock in some of your gains and reduce your risk.
your insights and recommendations show a deep understanding of the crypto market and the need for continuous learning and skill enhancement. Thank you for sharing this valuable information with the community. It's posts like this that help fellow crypto enthusiasts make informed decisions and navigate the dynamic crypto landscape successfully. Well done!