Tips on how to take crypto profits
Obviously, in the crypto industry, we have two categories of people that do influence the market. These people are traders (Buyers and Sellers) and Investors (long-term and short-term). Traders are those who are in the market for immediate profits, whereas Investors are looking for long-term profits. What matters most is profit-making, whether you are a trader or an investor.
Factors you should consider before taking profits
You need to watch out for bearish chart patterns. A bearish chart pattern usually tells us that the market is going down, meaning it is time for you to take a profit. To do this, you have to watch for bearish indicators.
Look out if there is price stagnation. Look to see if the price of the coins you are holding has been stagnant for a long time. In this case, you have to look to see if the market is going up or down before investing.
Look out for your tragedies profits: If you are into futures trading, it's better to secure some of your profits in order not to lose everything. For instance, if your trade is at 80%, you can secure 50% of your profit by adjusting your stop-loss.
Look out for news (geopolitical events). The crypto industry is surrounded by negative thoughts for those who don't know how crypto works, which sometimes affects the market. Ensure you listen to events like inflation, war, employment rate, price change, pandemics, and so on that can impact the crypto industry. To do this, ensure you join some crypto communities.
Conduct technical analysis: Always research what the crypto market is saying. Your research will let you know how much you can invest in a certain coin
How You Can Take Crypto Profits
Put an eye on your target profits: setting a target profit for your coin is the best way to go. Most crypto exchanges provide users with price alerts, which you can take advantage of. For instance, if you buy Steem when the price is $0.1812 and you want to take a profit at $0.2612, you can set a price alarm for this. Also, you can set a limit order for your trade.
Risk Anticipation: As a crypto trader or investor, you don't need to wait for the price of the coin you are holding to reach its highest level before taking profit or its lowest level before buying. This is the reason why stablecoins are available. With limited orders, you don't need to be checking your wallet 24/7.
Dollar-Cost Averaging Strategy: This is a method where traders keep on buying an asset small until it gets to a higher amount. You can use this strategy to take profits from the market since it reduces the risk.
The distinction between traders and investors is crucial, as their objectives and time horizons differ significantly. While traders seek short-term profits, investors have a long-term perspective.
However, by being informed, setting clear objectives, and using appropriate tools and strategies, traders and investors can maximize their profits and protect their investments.