Crypto trading is a way to generate income from purchasing and selling digital assets with the right timing for it. That is, you should understand the best time to enter and exit the market as well as be able to make decisions quickly. All that means is trading is not a lottery and not a game; otherwise, if you treat it like that, you will lose all your money sooner or later.
What is behind successful crypto investors:
- Ability to analyze the market and crypto prices
- Ability to evaluate external factors that affect the crypto market
- The vision of the ultimate goal and ability to stop and exit until its too late
- Understanding of strategies and applying them correctly
- Understanding how to pick crypto assets for investments.
How to become a crypto owner?
Here are some ways to become a cryptocurrency owner:
- Participate in airdrops offered by crypto projects.
- Play “play-to-earn” games that reward players with cryptocurrency.
- Buy cryptocurrency on trading exchanges.
- Mine cryptocurrency using the Proof-of-Work mechanism.
- Stake coins based on the Proof-of-Stake consensus.
When to Buy and Sell Cryptocurrency?
The best time to enter the market is when it is in its downtrend. For example, after the market’s collapse in 2022, large investors started to track the market, looking for worthy assets for investments. Those projects that survive the crypto winter will reach the mood in the next upward trend. Investors analyze:
- real use cases;
- social networks;
- crypto prices charts;
- investors’ sentiments;
- external factors, and news background.
When to sell coins?
Let’s see some signs it’s time to sell crypto:
- New coins constantly emerge in the market. It may happen that you lose interest in the assets you have bought before and want to switch to something new that looks more promising.
- If your trading purpose is achieved and you receive income, it is time to exit.
- If you bought crypto but can’t handle reading it (for many reasons, it may be just difficult for you to understand all the technical nuances), then maybe crypto is not your cup f tea.
- If you do not get returns from your initial investment and your losses only increase, it is time to leave the market to save at least some part of your funds.
- Sitting on the fence – when you have reasons for selling and holding assets, it is better to sell them and see what happens. Cryptocurrency prices are highly volatile, new price movements may happen at any time, but you can’t know anything for sure. So just make a decision and see how it works; after all, it will add experience to you.
Read more about crypto trading on the WhiteBIT blog.