Why You Should Avoid Converting Cryptocurrencies

If you’re converting crypto instead of trading it, you’re settling for the market value the exchange gives you. This is something most beginners do, but it’s not ideal. The only time conversion might make sense is if you’re dealing with very small amounts that can’t be traded on the spot market. Otherwise, converting is similar to buying crypto through platforms like NuBank, where you don’t really own the cryptocurrency.

The better approach? Trade smart. If you buy at price “A,” set a sell order at price “B.” You can even use tools like Trailing Stops to follow the market and lock in better profits.

Here’s the bottom line:

• Your goal is always to buy low and sell high—that’s where the real gains are.

• This can only happen when you actively place sell orders, whether limit orders or trailing stops.

• Conversions are convenient but come with hidden fees, even when they seem “free.”

On the spot market, you have the freedom to hold onto your crypto if the price drops. Unlike futures trading, you won’t face liquidations. If you’re patient, you can wait for the price to recover and sell at a profit. For example, someone who bought Bitcoin at its 2021 peak had to wait years to see a profit, but they only lost money if they chose to sell at a loss.

The key takeaway is to think long-term and take control of your trades. Use the tools available to you, stay patient, and remember: the market is just as much about mindset as it is about strategy.