When to Buy Crypto and When to Sell, My System and Opinion
If you want to profit in the crypto market, the most important thing to learn is when to buy and when to sell. In this text, you’ll find some help on that.
This is the part one of the article!
Introduction
Greetings, dear readers and loyal followers! I’m back! As our good old Arnold would say! I’ve been away for a while and haven’t written anything new because of the Christmas and New Year holidays. Just like everyone else, we writers deserve a break during the holidays, but that time has passed, so now we can get back to our routine and start writing again.
The topic of today’s article is hinted at in the title, but I haven’t fully explained what I mean. So let’s start slowly and get into the writing. Many people who haven’t encountered crypto or any form of investment think that the answer to the question in the title is entirely easy and simple — buy crypto when it’s very, very cheap and sell it when it’s very, very expensive and worth a lot! Is it all that simple, or not? Let’s try to find out together in the following lines of this article. Let’s start with buying cryptocurrencies first, then we’ll address selling.
So, when is the real right time to buy crypto, and what’s the right price at which someone should buy it? The simplest answer to this question is to buy crypto during a Bear market and buy it when it hits rock bottom. But where is that bottom, and how can we be sure that we bought it cheaply? The answer to this question is not easy because crypto is highly volatile. What’s the bottom today might be the peak of growth in a few months or even days.
If you’re already a crypto expert, you surely know what I’m talking about. But for those less familiar, let’s explain this thesis with a simple example.
Bitcoin Example
Let’s say we’re monitoring the price movement of Bitcoin or any other currency, but for simplicity’s sake, let it be Bitcoin because it’s the most famous. We’ve decided to invest specifically in Bitcoin and look for a favorable moment. For the sake of this example, let the price of Bitcoin now be $23,000, and let the Bear market still be ongoing. We bought 0.1 BTC at this price, and it cost us $2,300.
If the market starts moving favorably or, as they say, “goes green,” and the price of Bitcoin starts rising, we’ll be in profit, and we’ll start making money. We’ll surely be happy with our decision. If the price of Bitcoin starts falling and “goes red,” we’ll start losing money and be dissatisfied. If the price continues to drop significantly and for a long time, let’s say it reaches a price of $15,000, we’ll be in big trouble and lose a good portion of our money.
Now, let’s explain the thesis from the earlier part of the text!
If someone else (anyone) buys Bitcoin at this price of $15,000, also 0.1 BTC or an investment of $1,500, and if the price starts to rise and keeps increasing every day, reaching $23,000, then this other buyer will be in a good profit, and maybe it’ll be the peak for them. But for us, who bought it at $23,000, it means just breaking even and that we need to make a profit now. As we see, what means profit to one person can be a loss or just breaking even to another.
So, as we’ve seen from this example, the concept of bottom is highly relative, and it’s difficult to determine. Until it’s dark for someone, it can’t dawn for another!
So, how should you act on the market, and where, when, and in what to invest, you’re probably wondering now?
Well, there are no easy answers to this question, but I’ll try to help you make difficult decisions with my example.
https://cryptonftworlds.blogspot.com/2023/12/how-i-earned-137-in-crypto-completely.html
Option One for Hodlers
The best time to invest is indeed during the Bear market, but then you must be prepared for a potentially long wait to realize your investment. You also need to invest in those cryptocurrencies that are somewhat “safe,” like Bitcoin or Ethereum. They have proven themselves over the years in multiple Bear and Bull cycles because investing in “unsafe” ones like “Meme Coins” can be fatal, and you can lose all your money.
If you’ve chosen this option, be sure that it’ll take several months or even years until your investment starts returning, and the dollars start filling your pockets.
My investments from 2021 have only now started giving returns, just so you know. So, I’ve waited a long time, but I think it was worth it, and my moment to fill my pockets with dollars is just around the corner.
https://cryptonftworlds.blogspot.com/2023/11/my-crypto-investments-for-upcoming-bull.html
Option Two for Quick Earnings
If you’re not the type of investor who likes to wait for a long time, then the second option is for you, where the investment returns can be smaller, but they’re certainly much, much faster.
So, you should wait for the Bull market to kick in and for all crypto to “go green.” Then, your choice is quite easy, and almost everything you invest in will return your investment and even reward you. But here, it’s harder to achieve profits like 5x, 10x, or 15x because most cryptocurrencies have already experienced at least a part of their growth, and some have done half or more. Here, you might come across real gems, but only if you’ve done good research or if you’re really lucky.
You might choose a crypto that has already grown by 5x, but it’s expecting a real rally and then it adds another 15x or 25x, although such situations are rare, like winning a lottery, but not impossible.
My experiences with these situations were in the previous Bull market with SHIBA INU, where I earned 10x because I bought at the right time, just before the rise. And now, in this Bull market, where I hope for something similar to the crypto I recently bought.
https://cryptonftworlds.blogspot.com/2023/12/bulls-charging-again.html
So, my advice to all of you would be to invest in “safe” cryptocurrencies like Bitcoin and Ethereum while we’re deep into the Bear market and then Hodl, and in ALTs only when the Bull starts and after good research and a lot of analysis.
Option Three for Traders
Of course, there’s also a third option, which is trading. With it, you can earn in both Bear and Bull markets, but it’s not for everyone, and losses as well as gains can be enormous, but also fatal, and you might lose your hard-earned money.
https://cryptonftworlds.blogspot.com/2023/10/crypto-trading-unveiled-more-exciting.html
Remember that nearly 80% of small investors lose everything in trading, and this statistic is well-tested and proven, so use your brain and make wise decisions!
This was the first part of my article, and you can expect a continuation soon. Please remember that I’m not a professional financial advisor, and everything in this article is my personal views and thoughts. So, please use your own brain, do your research (DYOR), and think really hard before any investment!
You can read this article and much more about crypto on Medium, Publish0x, or Substack:
https://www.publish0x.com/world-of-cats-dogs
If you want to support my work buy me a coffee for $1.
Greetings, and until my next article!
Neo77
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