How To Know When To Buy And Sell Crypto In 2021

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how to buy and sell cryptocurrency for profit
Crypto

The prices of Crypto have been crashing over the past few weeks and months.   Initially the price of Bitcoin has come down to 50% since its peak in mid-April. Ethereum  has fallen by nearly 54% since the middle of May, and Dogecoin  down to a whopping 72% from its peak in early May.

Although falling prices can be cause for concern among investors, they can also make for great buying opportunities. This is especially true for higher-priced investments, and buying during a downturn can make them more affordable.

With the crypto market crashing, it may seem like a smart time to buy. But should you really invest now? Here’s what you need to know.

Finding The Right Time To Buy With Analysis

In theory, it is logical to try to buy investments when their prices are lower, and then sell once they have reached their maximum. However, that is far more difficult than it sounds.

Timing the market is incredibly challenging, and it’s even more difficult with cryptocurrency because these investments are far more volatile than the average stock.

Crypto prices have been on a wild ride-along, so trying to find the perfect time to buy is almost impossible. If you buy now because it appears that prices have capped, there is a chance that they could drop even more and you will have invested too soon. But if you wait too long, prices could go up dramatically and you missed your chance.

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How To Know When To Buy And Sell Crypto In 2021
The  prices  of Crypto have been crashing over the past few weeks and months.   Initially the price of  Bitcoin has come down to 50% since its peak in mid-April. Ethereum  has fallen by nearly 54% since the middle of May, and Dogecoin  down to a whopping 72% from its peak in early May.
How To Know When To Buy And Sell Crypto In 2021.

E-currency also doesn’t have a proven track record like stocks, so it’s anyone’s guess whether these currencies will bounce back from their slumps.

So far, major cryptocurrencies like Bitcoin have successfully recovered slowdowns. But there is no guarantee that those investments will continue to flourish, and there is a chance that cryptocurrency in general will fail. If you buy when prices are low in the assumption that they are going to jump again, you can set yourself up for disappointment if cryptocurrency does not succeed.

When Is The Best Time To Buy\how to tell when to sell crypto?

If you are interested in purchasing cryptocurrency, then when should you purchase it? The truth is, it’s not necessarily important — as long as you’re strategic about this.

The key to making money in the stock market is to purchase strong investments and retain them for the long run. If they’re actually good investments, they should grow over time, and their prices should go up with them.

The same thing applies to cryptocurrency. If you believe cryptocurrency has a promising future and will change the world, it doesn’t necessarily matter if you buy when bitcoin costs $58,000 or $30,000 per chip. If it ends up achieving, say, $400,000 a token one day, you’ll make a substantial profit, whatever.Of course, there is no promise that bitcoin or any cryptocurrency will make it. But the reason you’re going to invest is because you believe in its potential and you’re willing to hold on to your investments for years or even decades. If you invest only to try to make money quickly, this is a dangerous game and you will probably end up losing more than you earn.

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Another way to reduce price volatility is to take advantage of dollar-cost averaging. With dollar-cost averaging, you invest a certain amount of money on a set schedule — say, $9,000 every quarter, or $300 each month.Sometimes, you’ll end up buying when prices are high. But other times you’ll invest when prices are lower. Over time, those highs and lows should average out. This can help reduce the impact of volatility on your investments, and you don’t need to worry about buying at just the right moment.

No matter when you choose to invest, be sure to keep an eye on the long term. Nobody knows if cryptocurrency is going to succeed or not, but if it does, you can maximize your earnings by holding your investments for the long run.

READ ALSO :  SEC Chairman Draws Dividing Line Between Bitcoin, Crypto in Aspen Speech

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ONE WAY TO DO WELL IN CRYPTO IS TO ALWAYS BUY WHEN MARKET IS LOW, LETS SAY JOB WANT’S TO BUY BTC @ $42,783 (It’s advisable he divide’s #the $100 into two, buy at $42,783. In case market drops further to $41,465 buy the dip because this way will help cut down on losses)

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*Stock Advisor returns as of 17th September, 20211 This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.