Avoid Converting Cryptocurrencies: Here's Why
Converting cryptocurrencies directly on exchanges often means accepting the market price, a practice typically avoided by experienced traders. Conversion might only make sense for very small amounts that can't be traded on the spot market. Otherwise, it’s similar to purchasing crypto through platforms like #NuBank, where you don’t truly own the assets.
Trading is Key
Always trade your cryptocurrency rather than converting it. If you bought at price “A,” place a sell order at price “B.” Tools like a Trailing Stop can help maximize profits by adjusting to price trends.
Buy Low, Sell High
The goal is simple: buy as cheaply as possible and sell at the highest price you can. This is achievable by setting your own sell orders, whether they’re limit orders or trailing orders. Converting doesn’t offer the same control, and while it may seem fee-free, transaction costs are typically hidden in the price you receive—there’s no such thing as a free lunch.
Spot Market Advantages
In the spot market, you have the flexibility to hold onto a crypto asset without time pressure, unlike in futures trading. If you buy at a high price and the market dips, patience is your ally. Wait for a recovery to sell at a profit. However, keep in mind that not all cryptocurrencies are equal—holding BTC is very different from holding a short-lived token.
Psychology of the Market
Losses only become real if you choose to sell at a loss. No one forces you to do so. Successful trading in the spot market often comes down to maintaining a clear and disciplined mindset.