Make a “Take-Profit” Strategy That Works in The Cryptocurrency Market

To reap long-term benefits from crypto trading, market participants must devise strategies that make trading both enjoyable and risk-free.

The cryptocurrency market is a massive market in the digital market.How to Profit in a high Votality Crypto Market

When it comes to profiting in cryptocurrency, there is a lot to consider. After all, the volatile nature of digital currencies is a two-edged sword.

It’s not uncommon to see multiple four to five percent moves in a single 60-minute period. Occasional spikes of 40% or even 50% are not uncommon.

The benefits of crypto markets are obvious. For example, they continue to be more accessible. But here’s where the metaphor of the double-edged sword comes into play.

Inexperienced traders, for example, have easy access to cryptocurrency exchanges, where they may be presented with life-changing financial opportunities in the form of volatility.

At the same time, this volatility represents a trap for these newcomers, especially if they allow their emotions to cloud their judgment.

Different Markets, Different Strategies: Crypto vs. Stocks

Many cryptocurrency newcomers make the mistake of assuming that cryptocurrencies and stocks are the same thing. However, these markets are fundamentally distinct and necessitate distinct strategies.

Remember that if you want to make a take-profit strategy work in the cryptocurrency market, you must approach it objectively and without emotion. Don’t get into the habit of expecting more gains after you’ve met your profit goals, for example.

Because of the volatility of the cryptocurrency market, HODLing could cost you a lot of money. Don’t fall into the trap of letting huge gains pass you by without taking a profit.

Prices can change on a dime, and holding assets can result in rapidly dwindling portfolios. Make an investment strategy and stick to it no matter what.

Understand What a Take Profit Strategy Is

It is also a good idea to make some decisions ahead of time about how you want your take profit strategy to look.

With small profits from each trade, it is possible to generate a significant amount over time. Due to the highly volatile nature of the cryptocurrency market, scalping is also a popular trading strategy. Scalpers frequently use leverage to open more trades, as well as tight stop losses, to manage risk.

Trading during the day not exceeding 48 hours

This trading strategy entails entering and exiting positions on the same day. A trader’s goal in engaging in such a trade is to profit from intraday price movements in a cryptocurrency of his choice. For a successful trade, investors frequently rely on technical indicators to determine entry and exit points for specific crypto.

As Crypto are traded on24/7 basis ,this is an excellent strategy for volatile cryptocurrencies. However, with potential cryptocurrencies such as XRP or ADA both are hot with specific reason-make sure do your research ,as their gain or losses can just happened in any hours

The first step is to learn how to save your earned profits and avoid losses.Instead of booking more profit… say you start with a $20,000 account and take a 5% loss, your account value drops to $19000

Taking a 5% drawdown is another term for this.

Now, if you make a 5% profit, you will make $950. This only restores the account to $19950. You’re missing $50.

This may appear insignificant, but as the drawdown percentage rises, it becomes increasingly difficult to recover losses.For example, it may not seem like much if you lose 1% of your trading account because it only requires a 1.01 percent increase to return to its previous position.

A 20% drawdown, on the other hand, necessitates a 25% return, whereas a 50% drawdown necessitates a massive 100% increase in profits to recover to the same balance.

The greater your losses, the more difficult it will be to recover. That is why we always keep our losses to a maximum of 5–10%. If you lose 50% of your account, you’ll have to double your money just to get back to where you started, but unless you catch another low to top up 25% or more ,when you slide further, subjective if you have the necessary cash

Drawdowns and slight top up are normal, but because the market is so volatile, this rule should not be applied to long-term investments.

Separate your short-term and long-term portfolios. Don’t touch your long-term portfolio every day; instead, set it aside and concentrate on short-term trades.

To become a high-profit trader, you must devise a trading strategy that will allow you to weather these periods of loss.

The risk management strategy is an important component of your trading strategy.

The rewards will be incredible if you practice these money management strategies with patience and discipline.

To believe otherwise would be irrational. Periods of prolonged drawdown will occur at some point in your trading career.

Even the best hedge fund managers and investors on the planet have entire years of losses in a row.

After few winning trades, it’s easy to become greedy and try to capitalize on an opportunity by risking too much on a single trade. You could be severely harmed, and repeating this behavior could lead to your complete withdrawal from trading.

Here are few strategies to consider during a market downturn in order to preserve the value of your portfolio, avoid emotional trading, and sleep better.

Don’t succumb to FOMO or FUD.

Staying up to date on the latest news and trends in the cryptocurrency space is critical, but having too much information can be detrimental. This is especially true during market downturns, when it’s all too easy to be swayed by your instincts and make rash trades.

• FOMO (the fear of missing out) and FUD (fear, uncertainty, and doubt) are common terms in the crypto space, and they can have a heavier influence on our decision to buy and sell, than many of us would dare to say, that we are on our toes and already too fast to make a possible unfavorable choice

• FUD is a negative market sentiment caused by a rumor, an unfavorable news article, or a prominent figure expressing concerns about a specific market or asset.

Set specific goals, diversify your portfolio, and only trade within your means.

You should never invest more than you can afford to lose, no matter how confident you are in a particular asset. The last thing anyone wants is to be caught in an emotional rollercoaster while their portfolio’s price slowly falls.

Long-term thinking and HODLing

While the adage “it’s not a loss until you sell” is only partially correct, it has some weight. If the value of your assets has decreased since you purchased them, this is referred to as unrealized loss, and it is only realized when the assets are sold for less than the purchase price.

Prepare to ride out the downturn or take profits which means monitor by having access to few exchange board, compare and see their chart movement ,readily must decide fast when the market recovers

Converting some of your volatile crypto holdings for more stable assets is one of the safest options for avoiding crypto volatility and protecting yourself during a market dip.

In a cryptocurrency bull market, this can help an investor ‘lock in’ their balance, reducing risk and the need to actively manage their portfolio and stress levels.

Consider the possibilities to swap between those ,on the slide with those that has been stagnant ,or with least loss, somehow either has still chance for recovery but the concept is to top up those that are sliding too much , and trader might need to sacrifice some handling fees .but swap some time works ,when the coin you are holding put you in a position to take some action, to reduce and cushion impact to those going downsliding on the decline

Even when the cryptocurrency markets are in decline, there are opportunities if you know where to look. Whereas others see a see a new window of opportunity to acquire their preferred assets at a discount and profit.

This strategy can be applied to a potential newcomers for 2022. Let’s get started on increasing our wealth.

• Keep in mind to diversify your trades. Combining Bitcoin, Ripple, Litecoin, Ethereum and layer two coins , and other cryptocurrencies reduces the daily risk associated by spreading out your net wider

• Reduce trading costs.

• Keep an eye on trading hours.

• Subscribe to cryptocurrency News., twitter, telegram , look out for news!!

• Employ technical analysis.

• Use stop-loss orders.

Pray for Good Luck

#Disclaimer Note : This publication is not intended for use as a source of any financial , money making legal, medical or accounting advice. The information contained in this guide may be subject to laws in the United States and other jurisdictions. We suggest carefully reading the necessary terms of the services/products used before applying it to any activity which is, or may be, regulated. We do not assume any responsibility for what you choose to do with this information. This article is not meant for financial advice , Use with your own judgment.