Factors to Consider for Selling at the Top (Bull Market)


Every cryptocurrency cycle tends to follow the same pattern: most people lose everything or simply leave the market with no gains. The main factors that influence cycles are fear, greed and FOMO. While it is impossible to predict every cryptocurrency move with precision, having a solid understanding of the market structure can help you close positions at the best possible times. However, remember that if you are investing in the long term with a Dollar Cost Averaging you should not see the price, however in case of large speculative bubbles you should lighten your positions (especially if you hold altcoins which are subject to high inflation over the years and change from cycle to cycle cycle) or rebalance them (selling part of them).  

 

The first thing you should understand is the difference between:

-Trading (you are buying a derivative, in particular its price. You should always set a "take profit" and "stop loss")

-Investment (generally the best long-term investments over a 10-20 year period are BTC and ETH. Altcoins are usually not investments to hold over multiple cycles)  

 

Before investing in a token you should ask yourself these questions:

-What is the growth potential? (compare token with others in the industry)

-Who are the large holders and main VCs involved?

-What is the roadmap, partnerships, team, etc?

-Are there any upcoming listings on CEX for the token? (quotes usually lead to liquidity and price increases, especially on the news)  

 

What you should consider is: 1) Market cycle model 2) When to sell BTC/ETH/altcoin/memes  

The price of BTC, like any other asset, moves following specific patterns. This cycle repeats itself because of human emotions, especially FOMO. The diagram below illustrates the emotions that traders go through at different time frames.

GLypt3eXUAElxO1.png

To maximize profits, it is crucial to invest in altcoins during the trough phase.  "Buy when blood flows in the streets, even if the blood is yours"  

-Respect your money (don't treat it like it's a lottery ticket or in a casino)  

-There are no get rich quick schemes in this world (be patient, don't get caught up in FOMO)  

-Don't be the person who arrives after the party is over  

-When news comes out, it's time to sell, not buy (if you buy late, you're just feeding those who got in early)  

-Try to have a strategy (if you have decided to sell, you should do so. People who go into losses often find countless justifications for why they hold particular worthless tokens)  

static1.squarespace.jpg It is crucial to recognize when altcoins are truly taking off. During an altseason (usually lasting 1-2 months in a cycle of around 1.5 years), you could potentially earn dramatically more than BTC or ETH, due to the lower market cap. One of the main factors to keep in mind is the dominance of BTC.  

GLyp3qhXoAIp-m6.png

 

 

    Are you interested in ways to earn crypto bonus? Check it out here: Some Sites To Earn Crypto Bonus (Old & New)    

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