Your Money Could Be Stolen
Be aware that a hacker can potentially steal the contents of your digital wallet.
Your digital wallet has a public key and a private key . However, crypto-asset systems allow users to remain relatively anonymous and there is no central data bank. If a hacker steals your crypto-asset, you have little hope of getting it back.
Using a wallet thats held offline, called a hardware wallet or cold storage, may provide additional protection.
A Guide On Crypto Profit Taking Strategy
These days, more people are investing in cryptocurrencies. Some people have turned into full-time crypto investors. Investing in crypto can be quite lucrative, but it also has its fair share of challenges.
You can always use a crypto profit taking strategy to earn more from your crypto assets. If youre on the hunt for the best strategy to take profits in crypto, then look no further than this article. Here, we will discuss the various ways you can earn profits from your crypto assets.
Hodl and Earn Interest
One of the easiest and hassle-free ways of earning crypto is through holding your crypto coins and earning interest from them. How so, you may ask? If you have a quite substantial amount of crypto coins, it is always wise to invest in a hot wallet service.
One of the best hot wallet service providers is YouHodler. Other than providing you with crypto wallet services, you can also earn interest from your crypto savings. You can interest with an APR of up to 12% from YouHodler.
The benefit of this is that you do not have to sell your coins. You can always look at ways of increasing your crypto savings to boost your interest earnings. The interest earnings are also deposited into your account every week.
Crypto prices are very volatile and you will not always be making profits. Sometimes, you might rake in losses, especially when doing a crypto exchange.
Way#6 Help Out With Cryptocurrency Microtasks
If you have extra time, you can also do some small tasks for individuals or cryptocurrency platforms and get paid for it. The tasks can widely vary it could be apps testing, adverts viewing, taking surveys, watching videos, and more.
You can get microtasks from sites such as Bitcoins Rewards, Coinbucks, or Bituro.
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How To Take Profit On Crypto
When to sell ethereum? At what price should you start locking in the profits of your investments. Even if you are investing for a longer period of time it is smart to lock in some profits.
But how do you know that 1000, 10000 or 20000 is a good profit?
In this video you will how to take profit on crypto. If you are new to crypto investing it is super important to know how to take profit. Without a strategy in place it is like going in a dark room without a flashlight. You will never find the exit. This strategy works if you want to take profit on binance. So if you have questions like how to take profit ethereum or how to take profit bitcoin and you are a beginner wanting to profit trading crypto as a long term investor then you are in the right place. This is not a trading crypto course but a strategy to maximise your profits in the long run.
Lets take a look at the price of ethereum
When lets say you bought some eth between january 2017 and august 2017. Since you are a smart investor you invested using the dollar cost average method. You bought at small increments at an average price of 200 usd per eth.
It is super important to have a strategy before investing. The 100% hodl mentality is not the best investment strategy
The simple reason for that is psychology and the fear of missing out on profits.
The human brain works in mysterious ways. If you just had the information that you gained 200% on your investment you would be super happy. I mean who wouldnt.
Pay Attention To Fibonacci Levels
The cryptocurrency markets are, to some extent, influenced by algorithms and automated trading bots. This market environment tends to push prices to Fibonacci levels. Paying close attention to these levels can help you gain a hometown advantage in the crypto market. This is even especially true during retracements.
Oftentimes, you should expect to have some sort of reaction based on different Fibonacci levels. And this can provide you with a temporary liquidity pool when looking to close a position and pull profits.
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Take This Word Of Advice
Before we continue, let us mention this: Thousands of cryptocurrency traders lose more money than they make.
This could be because of several factors, including trading coins with no real use case and not taking profits on time.
The rule of thumb is never to sell at a loss. So keep this in mind as you start implementing crypto trading profit and loss strategies.
Paying Attention To Fibonacci Levels
The crypto market, by its very nature, also tends to push prices to Fibonacci levels. If you pay close attention to these levels, especially concerning retracements, youll gain the hometown advantage when it comes to cryptos.
Remember that crypto markets are, to some extent, influenced by algorithms and automated trading bots. This market environment tends to push prices to Fibonacci levels.
In most cases, there will be some reaction as a result of different Fibonacci levels. This can provide a temporary liquidity pool for you to close a position and take profit.
In addition to Fibonacci levels, its also common to see price reactions at pivot points.
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When To Take Profit Cryptocurrency
Whats the bottom line when it comes to taking profit on cryptocurrency? That depends on your level of comfort with risk and ultimate goals. Nevertheless, there are a few strategies worth considering.
- Keeping your eyes open for divergence
- Paying attention to Fibonacci levels
- Watching for pivot points
When it comes to becoming a crypto trader, honing the three strategies above will help you become a veritable boss.
But before we dive into these further, if youd like to reduce the risk associated with your crypto investment, consider SmartCredit.io. How does it work? Lets say youre investing in Ethereum and think your only option is day trading.
Its time to think again. You can lend your ETH with SmartCredit.io to earn more ETH. If you think ETH prices will go up, you can consider using an ETH loan to profit from this situation. Find out more about the process.
Keep A Close Eye On Pivot Points
This is another important indicator to have a clue into when its right to pull profits from your crypto investment. Pivots will help you recognize changes in market sentiment from bullish to bearish. Pivot points are especially useful for day traders as it helps them to recognize levels of entry points, profit-pulling, and stops. So you can always see them as technical indicators you can trust for a profitable trade.
You can use pivot points to identify reversals and trends primarily in equities, commodities, and forex markets.
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Buying And Storing Crypto
You can buy or sell crypto on a crypto trading platform using traditional money. Crypto is kept in a unique digital wallet or hardware wallet.
A users wallet has a set of private keys that are used to authorise outgoing transactions on the blockchain network. A wallet may be a software or hardware wallet. A hardware wallet stores these private keys on a secure hardware device not connected to the internet. This can protect the users wallet from hackers.
Scam alert: an increased number of Australians have reported losing money through crypto-asset or cryptocurrency scams.
Tools To Secure Crypto Profits
WendyO’s favorite way to add to her position is with a limit order to buy. This option allows her to pre-set a price point she’s willing to buy in at that way if a quick price dip happens while she’s taking a snooze, the order will automatically execute. This is a great option for traders to utilize, especially in the crypto market, which tends to move much faster than the stock market.
Additionally, she likes to set a stop-loss order, known as a limit order, which would sell the asset at a minimum price or higher. If a cryptocurrency’s value begins to drop, the amount of your choice would sell. This allows WendyO to secure the profits she has already gained.
Investors who use this feature often continually adjust the order, increasing the price points at which the order is executed, parallel to the asset’s growth.
WendyO emphasizes studying the historical chart patterns of the cryptocurrencies an investor is considering. Specifically, you should understand what basic support and resistance are, and determine what those areas are for each asset.
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How And When To Take Profits From The Crypto Market
Let’s do some real talk about selling your crypto.
This is something I’ve been putting some real thought into lately.
With all the buzz and enthusiasm about crypto, it is easy to always think it goes up and up. But, we all know that isn’t true.
Or you could take the utopian view. That BTC is superior to all else and you should have “diamond hands” and never sell – ever.
But, here’s the thing…
We’re still really early in this new cryptocurrency world. And yes, long term, I think it goes way higher than where we are right now. But, does that mean you never sell any?
If you don’t take profits, then what’s the point? Just holding it does nothing but make big numbers on your computer screen. For you to actually have any real-world impact on your REAL, physical life, you’ve got to sell some of your crypto back into fiatFiat, or fiat currency, is a currency that exists and has value merely because it’s home government says so. A fiat curr… and then use that to buy things.
How To Take Profits In Crypto
When it comes to taking profits in crypto, theres a lot you need to bear in mind. After all, the volatility of digital currencies represents a double-edged sword.
Its common to see multiple four to five percent moves within the span of just 60 minutes. Occasional spikes of forty or even fifty percent arent unheard of.
The advantages of crypto markets prove obvious. For example, they remain more accessible. But heres where the double-edged sword metaphor comes into play.
You see, inexperienced traders gain easy access to crypto exchanges, and there they may get presented with life-changing financial opportunities in the form of volatility.
At the same time, this volatility represents a trap to these newcomers, especially if they allow their emotions to get in the way of logic.
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At What Price Should You Sell
The sooner you start selling, the faster you realise some ROI. However, remember that the later you start selling, the more profit youll earn per transaction.
Its important to play around with these two concepts when setting your selling price levels.
If were to assume the price of Bitcoin will hit $200,000, some potential sell targets would be between $100,000 to $200,000.
If you want to be a bit more cautious, you could follow the example below and start selling sooner, for example around $50,000.
To maximise your profits, you should know what percentage of your portfolio to sell and what percentage to keep.
After all, nobody can time the markets perfectly.
Why Are Cryptocurrencies So Popular
Cryptocurrencies appeal to their supporters for a variety of reasons. Here are some of the most popular:
Supporters see cryptocurrencies such as Bitcoin as the currency of the future and are racing to buy them now, presumably before they become more valuable
Some supporters like the fact that cryptocurrency removes central banks from managing the money supply, since over time these banks tend to reduce the value of money via inflation
Other supporters like the technology behind cryptocurrencies, the blockchain, because its a decentralized processing and recording system and can be more secure than traditional payment systems
Some speculators like cryptocurrencies because theyre going up in value and have no interest in the currencies long-term acceptance as a way to move money
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Crypto Is Not Regulated
Many crypto-assets and other digital assets are commonly not considered to be financial products. Because of this, the platforms where you buy and sell crypto may not be regulated by ASIC. This means you may not be protected if the platform fails or is hacked.
When a cryptocurrency fails, investors will most likely lose all the money they put in. In most countries, cryptocurrencies are not recognised as legal tender. You’re only protected to the extent that they fit within existing laws.
How To Pull Profits From Crypto Investment
The cryptocurrency world is not always as easy as it looks from the outside. It can also be full of ups and downs with lots of questions in the mind of any crypto trader. One of such questions is when and how to pull profits from your crypto investments. Knowing when to take out profits is one important factor that helps distinguish between a profitable trader from unprofitable one.
However, you cant just pull out profits from your investments any time you feel like doing so. There are some factors you need to carefully consider before pulling profits from crypto. For instance, you need to consider when you entered the trade and what your plans are for entering into such a trade.
At the same time, you will want to think about the crypto exit strategy you will be using in case the market goes south. So lets go deeper into the topic now and see how you can pull profits from crypto.
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Are Cryptocurrencies A Good Investment
Cryptocurrencies may go up in value, but many investors see them as mere speculations, not real investments. The reason? Just like real currencies, cryptocurrencies generate no cash flow, so for you to profit, someone has to pay more for the currency than you did.
Thats whats called the greater fool theory of investment. Contrast that to a well-managed business, which increases its value over time by growing the profitability and cash flow of the operation.
For those who see cryptocurrencies such as bitcoin as the currency of the future, it should be noted that a currency needs stability.
Some notable voices in the investment community have advised would-be investors to steer clear of them. Of particular note, legendary investor Warren Buffett compared Bitcoin to paper checks: It’s a very effective way of transmitting money and you can do it anonymously and all that. A check is a way of transmitting money too. Are checks worth a whole lot of money? Just because they can transmit money?”
» Learn more: Is Bitcoin safe?
This price volatility creates a conundrum. If bitcoins might be worth a lot more in the future, people are less likely to spend and circulate them today, making them less viable as a currency. Why spend a bitcoin when it could be worth three times the value next year?
The Volatility Of Cryptocurrency Is A Double
In case no one tells you about this before you venture into cryptocurrency trading. Crypto is an asset subjected to too many changes. It is highly volatile. The price of a crypto token can increase by 5% within only one hour. At the same time, it can surge deep even in the next hour. It can be very unpredictable.
However, many inexperienced traders today when faced with a lifetime opportunity that comes in form of volatility, it can be very difficult to make a smart decision. But many of them oftentimes fall victim to the volatile nature of cryptocurrency by allowing their emotions to dictate their trades. So, always learn to tame your emotions.
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Have A Strategy For Crypto Trading
It isnt easy to separate genuine cryptocurrency recommendations from the scams there are lots of sharks out there waiting to take your money.
In 2020, according to the UK fraud-alert service Action Fraud, reports of crypto investment scams surged by 57% year on year to 5,581, with investors losing a total of £113m.
So when youre confronted with a lot of information about a cryptocurrency, take a step back from the hype.
Try to look critically at the project. How many users does it have? What problem does it solve? Does it have any links with industry? Avoid coins that promise the Earth but havent delivered anything tangible.
Why Did You Enter The Market In The First Place
Before you app in on a coin, you need to know why you wish to buy the coin. Just like me, some people also enter the market for a long term hodl and that’s why when the coins go side ways I have nothing to bother about because it will eventually pump back.Some get into the market for quick profits and when when the coins go side ways, they start to panic.
The funniest thing is that the charts might be tricky pointing to go down but all of a sudden pumps massively. What will you do there?
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How Crypto Is Used
Crypto-assets were first developed as a digital form of currency, to be used as money. Some stores accept crypto as payment for goods and services, and some ATMs let you withdraw it as physical money. However, crypto is not legal tender in Australia and is not widely accepted as payment.
Crypto is more commonly used as a speculative, longer-term investment, as most people dont access their balance for everyday transactions.