Knowing when and how to exit a cryptocurrency investment when it’s on the rise can make a huge difference in making tangible gains. Here are some important tips:
1. Set profit targets in advance: Before entering into any investment, set clear profit targets. For example, if you are targeting a profit of 30% of the investment value, stick to it and do not let greed influence your decision.
2. Use automatic sell orders (Stop-Loss and Take-Profit): These orders help you automatically lock in your profits when you reach a certain level, protecting you from rapid market fluctuations.
3. Partial Exit: Instead of selling your entire investment when the price rises, you can sell only a portion of it to secure some profits while leaving the rest to benefit from further potential upside.
4. Monitor technical signals: Use technical analysis tools such as support and resistance levels and relative strength indicators to identify optimal exit points.
5. Avoid emotional decisions and emotions: When you see prices rising rapidly, it may be tempting to hold on as long as possible, but making an informed decision according to your plan is the key.
6. Market and news analysis: Stay up to date with economic news and developments that may affect the market. Sometimes, exiting early may be better than waiting for a major market correction.
7. Secure profits gradually: If you are not sure that this is the highest high, secure your profits in intervals by selling gradually.