When to fix profits in investments in cryptocurrency?

There are a number of factors to consider when planning to sell your crypto assets. Since knowing when it is best to sell cryptocurrency is of great importance for a profitable return on investment.

Investing in cryptocurrency and seeing the price rise is always a pleasure. Only ignorance of how and when to sell cryptocurrency can interfere with the potential profit of the investor.

There is a concept of "unrealized profit" — this is when an investor buys a cryptocurrency, the value of which increases, but continues to sit and watch, hoping that the price will continue to rise forever, which, alas, will not happen. Therefore, it is very important to know how and when it is profitable to sell cryptocurrency, so as not to miss the right time.

In this article, we will delve into the economic cycles and trends of the cryptocurrency market. We will look at the definition of free market capitalism and discuss a number of ways that can help plan a profitable investment strategy for selling crypto assets.

Understanding Cryptocurrency Markets
Free market capitalism
When to Sell Crypto Assets
Technical analysis
Fundamental analysis
Strategic Investment Plan
DCA Profit
Gaining knowledge
Sales Alternatives
A loan secured by cryptocurrency
Instant Loans
Steaking
HOLD
Results

Understanding Cryptocurrency Markets
In 2009, Bitcoin became the first launched cryptocurrency. It was launched by a developer (or a group of developers) under the pseudonym Satoshi Nakamoto, and was presented as a decentralized peer-to-peer payment network. By introducing innovative blockchain technology, Bitcoin has solved the problem of double spending.

cryptocurrency markets

The result was a distributed network of computers working together to confirm peer-to-peer transactions. Thus, it eliminates the need for expensive third-party intermediaries between users.

Since then, thousands of different cryptocurrency projects have been launched. Creating a token is pretty easy now. The value of the token lies in its usefulness for the project, advantages for its owners, uniqueness and scarcity.

Free market capitalism
Capitalism is famous for its "free market" of supply and demand. In principle, it contributes well to competition, creative development and innovation. In a free market, useless enterprises and assets will be reset and become insolvent, and assets will be redistributed among innovative promising and in-demand companies.

However, within the traditional financial industry, market capitalism is most often manipulated. This is due to the fact that local governments, corporate giants and central banks can jointly influence traditional markets. The incessant greed of directors of companies that disproportionately distribute profits has now led to the worst global inequality in centuries.

Blockchain technology has become a real revolution. With cryptocurrencies, all transactions are publicly and securely transparent, and with decentralized funds, the tokenomic design of cryptocurrencies cannot change. The only exception to this rule is when the project community voted for it by a majority vote.

Consequently, neither the intervention of the government or the central bank can affect the dance of cryptography, mathematics and computer science in a crypto project. Token projects are unchanged, unless the project community voted to the contrary. This in itself is a revolutionary opportunity for the capitalist free market.

When to Sell Crypto Assets
The skill of when it is best to sell crypto assets is improved with experience and over time. Very often, novice crypto investors sell their assets at a loss. This is simply due to lack of experience, and thus you become a victim of market psychology trends.

For example, as the price rises, people invest, thinking that it will continue to grow. And as the price decreases, most people, on the contrary, rush to sell, because of the fear of a rapid drop in price. Below we will look at some basic tips on how to learn how to calculate time in the markets and when to sell cryptocurrency.

Technical analysis
Technical analysis (TA) is applicable to all forms of investment, including cryptocurrency, stocks, gold and other commodities. TA refers to the patterns of market behavior that correlate with the patterns on the trading chart. Thus, if investors can understand how to read a trading chart and catch the general market trend and the time of microtrends on a smaller time scale, it is easier for them to make probabilistic calculations and assess possible risk.

In addition, knowledge of TA is crucial for investors who want to know when to buy and sell cryptocurrencies. The general theory of economics is that market models are "cyclical".

THAT is a set of trading principles followed by the trends themselves. Thus, the ability to identify a significant trend change is a good investment tactic, which, accordingly, helps to understand when it is best to sell cryptocurrency.

Fundamental analysis
Another form of market analysis, more common in crypto markets than in traditional markets, is fundamental analysis (FA). Instead of tracking price movements on trading charts, the FA focuses on the upward and downward indicators in the industry, looking at market trends from a holistic perspective.

Looking at trends and knowing what is relevant now and what is not, you can significantly succeed in selling cryptocurrencies.

Strategic Investment Plan
Another sure way to make a profit when selling crypto assets is to create a strategic investment plan. Long-term and reliable investments in developing cryptographic projects with real utility can be a valuable and profitable business.

strategic investment plan

The point is to determine the return on investment strategy in advance, and then just stick to your plan when the time comes.

Some crypto investors got carried away with the hype, believing that prices would only grow. Moreover, greed wakes up in some investors, and they have little profit already received. And this is very dangerous, due to the extreme volatility in the cryptocurrency markets. As a result, many investors missed out on higher profits by selling assets at a lower price during a bear market.

A popular cryptocurrency investment strategy for deciding when it's time to sell a cryptocurrency is a time when the initial investment has doubled, tripled, or even more. Investors then sell their initial investments, keeping the resulting profits for themselves. As a result, investors will not lose profitable amounts.

DCA Profit
Another popular investment strategy in the crypto community is often referred to as "DCA-ing" or dollar value averaging. This means that when buying crypto assets, investors buy a small amount over a long period of time.

For example, with a budget of $200, an investor can buy $20 worth of BTC every day for 10 days. Or they can choose $50 a week for a month. Frequency and quantity don't really matter. However, DCA is a great way to get the best price exposure of a volatile asset over time.

The same thing works in reverse when deciding on the sale of crypto assets. Even with the best technical analysis tools and many years of experience, it takes time to reliably confirm trend changes. Trend changes are common and can happen very quickly in the crypto market.

Thus, it has already been proven that knowing the current trends of fundamental and technical analysis and averaging profits from investments in cryptocurrency is the most profitable strategy. However, as with any investment strategy, the best solution is to stick to your plan clearly.

Gaining knowledge
It is important that you understand that education is crucial. Relying on the "flair" and advice of friends and family will never be as profitable as developing a final investment strategy and following it.

Moreover, in order to make the best investment plan, it is vital to understand the tokenomic design of the project and value propositions. In addition, to implement an investment strategy with a profit, research and monitoring of market conditions are required.

The ability to navigate economic cycles and volatile market conditions generates a sense of financial freedom. Understanding when to buy cryptocurrency and when to sell cryptocurrency is a valuable skill that everyone should learn. In addition, in order to fully assess how the global financial infrastructure works, it is worth understanding how it has developed.

Sales Alternatives
There are many reasons why people may decide to sell their cryptocurrency. This is often due to a bearish reversal in the markets or when people need more fiat money. If you are not sure whether to sell your cryptocurrency, here we will discuss several alternatives to selling your assets.

alternatives to cryptocurrency sales

A loan secured by cryptocurrency
A loan with crypto collateral is a great option for those who need quick access to cash, but they do not want to sell their crypto assets. Decentralized Finance (DeFi) applications offer independent and censorship-resistant financial loans. This often requires collateral in one form or another, while the debt-to-collateral ratio varies depending on the project.

Instant loans
For more savvy investors, instant loans offer new investment opportunities. In other words, fast loans allow users to take out a loan, use a profitable arbitrage opportunity and repay the loan, and all this within a single transaction. Moreover, instant loans do not require collateral, but they are more technical and difficult to understand and execute than conventional DeFi loans.

Steaking
For investors wondering when to sell cryptocurrencies during a bear market, an alternative may be to transfer assets to the staking protocol. This is extremely common in the crypto ecosystem. Users can lock their existing funds on the platform and receive passive income from interest. Often interest rates are calculated in double digits, and some automated market makers (AMM) offer three-, four- or five-digit annual interest rates. Staking can be a profitable alternative to selling crypto assets during a bear market.

HOLD
If you find yourself in a bear market and don't know when to sell cryptocurrency, the alternative may be to simply save your assets, which is called HODL. The word got viral after a drunken typo by one of the users on the Bitcointalk forum, where he wrote "I am HODLing", which translates to "I hold", which can be correlated to "I hold cryptocurrency during a bear market".

Results
I hope this article has given you some useful tips about when to sell cryptocurrency. However, do not forget that the decision to sell cryptocurrencies should be your own decision, and not because of the influence and advice of others. Ideally, deciding when to sell cryptocurrency should be part of a larger action plan.

If you don't know when to sell cryptocurrency, then maybe you shouldn't even. The best way to ensure profitable investments is to conduct extensive due diligence and learn about market trends and technical analysis.

In addition, it is worth taking the time and attention to organize your investment strategy, and not succumb to hype or greed. Not only is it risky, but it can also turn out to be an unprofitable step. Be confident in your investment strategy before you start investing and stick to your plan.