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, 10’000 or 20’000 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.
Let’s take a look at the price of ethereum (chart)
When let’s 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.
When the market is going up you are blown away by the profits and everyone is saying it is silly to sell it will go to the moon. Now before you know it, the peak has passed
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 wouldn’t.
So let’s say you buy 1 Eth for $200 USD and it goes to $400. You are super pumped. You wait a little bit and it goes to 600$. You are euphoric. You can’t imagine that the price of Ethereum has gone up so much. You have made so much money investing. You are an investing god. The price can only go up from here and you start imagining about all the amazing stuff you can buy with this money. You fantasize about the profits about not having to work anymore.
Before you know it. The bull market has passed and price drops. Psychological trading warfare starts happening in your brain. The price of your investment has reached new highs and now it dropped 20%. You definitely can’t sell now. The price will definitely go back up again. You don’t want to give aways this 20% you just lost. Let’s just wait for another day.
By the time you end up selling your investment has dropped by 80%.
If this triggers ptsd memories from the 2017 bullrun and respective market crash, then you must understand why selling at a profit is the most important part of trading. Even if you don’t manage to sell all at the top. But, I must warn you beforehand. If you haven’t experienced the crazinzess of a bullrun, especially in the last few months then it will be difficult.
Let’s say you bought Bitcoin at 1000$ the price goes up to 5000$ you can’t imagine it. You believe the price will fall so you sell your bitcoin at a 5x profit. I mean 5x profit is not a joke, many people dream of having such high returns in any market.
If you sell a cryptocurrency for 5x twice that is 25x profit. That is a lot easier than buying a project and waiting for 25x gains.