After a big FUD (Fear, Doubt and Uncertainty) around the USDC depeg this weekend, the Silicon Valley Bank rescue plan has pumped the crypto market. However, nothing lasts forever, and as usual in cryptos, some traders will take profits, and a correction will follow.
Therefore, it might be useful to secure your precious crypto gains acquired during the pump before it dumps.
How to secure crypto gains after a pump?
Securing gains after a crypto pump can be a challenging task, but here are some strategies that you can use:
- Set a Target Price: Before you invest in any crypto, set a target price at which you want to sell. If the price reaches that level, sell your holdings, and take your profits. Stick to your plan, and don't get greedy. For instance, if your target price for Bitcoin (BTC) was USD 25700, just sell it and wait for the next dump to buy it again...
- Use Stop Loss Orders: A stop-loss order is an order that is placed with a broker to sell a stock or cryptocurrency when it reaches a certain price. This can be a useful tool to limit your losses in case the price drops suddenly. For instance, Ethereum (ETH) price is currently USD 1758, you can put a stop loss at USD 1750 in case you think it can maintain its current price or pump further but just want to make sure you get at least USD 1750.
- Take Profits Gradually: Instead of selling all your holdings at once, consider taking profits gradually. For example, you could sell 25% of your holdings every time the price increases by a certain amount. In the examples above, you can sell only a part of your BTC or a part of your ETH.
- Diversify Your Portfolio: Don't put all your eggs in one basket. Diversify your portfolio by investing in different cryptos. This can help you reduce your risk and protect your gains. A good strategy is to invest into cryptos that are not too much correlated to the ones you already have. You can check the correlations between cryptos on: https://cryptowat.ch/fr-fr/correlations. For instance, Cosmos (ATOM) can be a good diversification asset.
- Stay Informed: Stay up-to-date with the latest news and developments in crypto market. This can help you make informed decisions about when to buy or sell. You can follow me on Medium for more information: https://medium.com/@cryptofab
Remember, the crypto market can be volatile, and there are no guarantees. Always do your research and invest only what you can afford to lose.
Disclaimer: this article does not contain any financial advice. The information is provided for general informational and educational purposes only.
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