How to Choose a Moment to Invest in Crypto? Main Rules
Table of Contents
How to choose a moment to invest in crypto? Main rules
Entering the market is one of the most important aspects of trading or investing. The result directly depends on the decision-making. BitXmi analysts talk about how to reduce risks and increase the chances of success.
The first rule of determining when to buy is to study the news agenda, investor sentiment, and other fundamental factors. For example, when choosing a cryptocurrency, it is worth learning everything about its history and assessing the prospects. However, the possibility of error must always be considered.
Having analyzed the asset fundamentally, you need to tackle a trading strategy. First of all, it is worth determining the goals: the price for fixing profits and the moment of closing the transaction to save from serious losses if the market goes in the opposite direction.
For a complete understanding of what is happening in the market, it is important to be able to analyze price charts. However, technical analysis requires special knowledge and skills. There are many TA from various experts on the internet. It is worth collecting the opinions of various proven specialists, and on their basis make your own conclusion.
A growing market is called bullish. For example, bulls are now believed to be dominant in cryptocurrencies. In January, the bitcoin rate on Bitxmi.com renewed its all-time high at around $ 42 thousand, and since March 2020 it has grown by 1000%.
The bear market was observed in the field of cryptocurrencies in 2018-2019. Then many coins practically depreciated, having lost more than 80-90% in value. However, this was a good entry point. Those who bought assets at a low rate, in the end, received the greatest profit.
Buying in parts
You don’t have to try to guess the perfect moment to invest, it is almost impossible. Even the most experienced traders and investors make mistakes, not to mention the average user. Therefore, the best way to minimize risks is to enter a trade in parts.
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Disclaimer: Bitxmi News is a news portal and does not provide any financial advice. Bitxmi's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Bitxmi News won't be responsible for any loss of funds.