When To Buy A Crypto And When To Sell A Crypto: 7 Tips

Here are seven tips to help you identify the best time to buy a crypto and sell it in the market

Last Updated July 23rd 2021
6 Min Read

In a market filled with uncertainties, selling and buying cryptocurrency is not a cakewalk. Considering future returns, it can be a productive and lucrative activity. With a legion of cryptocurrencies in the market and ever-changing market trends, however, the common hurdle every crypto enthusiast faces is when to buy a crypto and when to sell it.

Here are seven tips to help you identify the best time to buy a crypto and sell it in the market. 

Key Takeaways:

  • Out of many things, setting your target and deciding on a strategy is of utmost importance.

  • The best tip is to invest your time and keep a close look at the market trends.


Tips: When To Buy Crypto And When To Sell A Crypto 

Begin By Setting A Target 

Start setting your target by deciding specific coin values at which you want to sell or buy a cryptocurrency. You can then employ various techniques, like limit sell orders, that allow you to close your trading once your coin hits a specific higher price. 

Therefore, deciding whether you want short-term gains or secure a long-term wealthy future will help you decide when to buy and sell crypto in the market. 

Read Also: 7 Reasons to Invest and Trade in Cryptocurrency

Significance Of Stop Loss

There should be a specific plan for you to know when to get out from a particular trade. Knowing where and when to start buying crypto and when to stop it is an effective technique to help you cut your losses. It is a skill that needs practice and patience and is not a random activity. 

Making solid decisions is of utmost importance for trading in the crypto market. A practical use case of the stop loss technique is to consider that you have acquired a coin at $2,000. Let it be the minimum point you are willing to trade. This will ensure that you reduce your losses, and when the worst-case scenario comes in, you know how to walk away with what you have initially invested.

A Detailed Research Is Mandatory 

One of the best tips on when to buy and sell crypto is to do detailed research. Keep track of the current market trends, coin values, market capitalization, etc., in order to be a successful trader who is aware of their trading journey. 

There are multiple financial news articles and global news events that traders can easily track. But the critical research tool is technical analysis. If you are willing to be a successful crypto investor or trader, you should take time reading charts, keeping track of values and prices, identifying specific patterns to know when to sell crypto and when to buy it. 

Talking and discussing with other investors is also a good practice as they might be happy to inform you of the right time to buy a specific cryptocurrency. Keep in mind to avoid taking advice at face value and do your due diligence, contemplation, and deliberation before taking a step. 

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Keep Track On The Market Volatility 

This tip is also useful while doing your research and technical analysis. All cryptocurrencies including Bitcoin, are quite volatile. The price can surge high, hitting an all-time high, and go down, hitting rock bottom within a day. 

Apart from considering the price predictions, it is also significant to keep track of its rally over the past few years, factors that might boost its price, adoption rates, future developments, etc. These are a few important factors to consider before buying or selling a cryptocurrency.  A simple tip is to have a close target for tradings when the crypto is highly volatile in a continuous pattern. 

Do Not Buy Just Because The Price Is Low 

A common mistake that most beginners make is to buy a coin when the price seems to be low according to their budget. Though it is vital to keep your target budget in mind, purchasing a cheaper cryptocurrency is not always a profitable strategy. The decision to buy a cryptocurrency should largely depend on its market cap rather than its affordability. 

Therefore, a valuable tip on when to buy crypto is to analyze its market cap. The higher the market cap, the more profitable it is for investments. 

Know When To Buy Or Sell And When To Hold 

The crypto space can be pretty lucrative at times, and a solid tip for every investor or trader is to be patient and have perseverance. An intelligent strategy while dealing with cryptocurrencies is to have a buy and hold approach. It can range from weeks to years. Buying and holding a particular cryptocurrency can help you bypass its short-term volatilities. 

Overtrading can lead to a severe loss of your profits. Therefore, the key is to be a passive trader focusing on long-term gains through a robust risk-management plan with careful stop-loss orders. 

Check Out: Can Cryptocurrency Trading Make You Rich?

Decide What Kind Of Trader You Are

Finally, all these tips have to be strategized based on what kind of trader you want to be or what kind of return you are willing to gain from the crypto investments. Here are the four common types of traders one can find in the crypto market. It might help you to clear the fog around. 

  • Scalpers: If you want to make multiple trades per day for small profits, you are in this category and need to be more active in the market. 

  • Day Traders: If you want to take advantage of the short-term market movements then you belong in this category and should plan your strategy accordingly.

  • Swing Traders: These investors indulge in detailed research and technical analysis to capture the current trends and reap maximum benefit from them. 

  • Passive Trader: This includes most traders and investors who dream of securing a wealthy future and hold on to their positions with a focus for profit for the long haul. 

Deciding on which category of traders you are in and setting specific targets gives you a clear idea of when to buy a cryptocurrency and when to sell it fruitfully.

When To Buy A Crypto And When To Sell A Crypto: The Bottom Line

Investing in cryptocurrencies can secure you a millionaire's future.  But it demands time, patience, research, and a good strategy. Have a fruitful trading journey with these seven tips and decide when to sell a cryptocurrency and when to buy it accordingly. With a good plan in place, you can secure a wealthy future from your crypto investments. 

eToro – The Best Platform To Buy Cryptos 

eToro have proven themselves trustworthy within the Crypto industry over many years – we recommend you try them out.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.