Cryptocurrencies are digital or virtual tokens that use cryptography to secure their transactions and to control the creation of new units. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control. Bitcoin, created in 2009, was the first and is still the most well-known cryptocurrency.
A target doesn’t have to be a point on the chart where you hope your investment will go. It can be anything that will give you the signs to get out of the trade. These are usually dependent on your entry price, stop loss and other trading rules for this particular cryptocurrency trading strategy.
If you’re not looking at the price action and just trade-off of charts without any real money management plan, then targets are usually where you take your profits off. In most cases, it will be a 50% retracement from your entry price to the lowest point on the chart.
Crucial Market Indicators to Pay Attention To
In order to set your targets, it’s important that you’re aware of the market indicators. These are the factors that will dictate where the price could be going.
-Supply and demand: The number of buyers and sellers in the market will affect the price. When there’s more demand than supply, prices go up. When there’s more supply than demand, prices go down.
-News events: Events like big companies accepting Bitcoin payments is good news for the cryptocurrency market. Its positive developments like this that attract more buyers and cause an increase in demand. And when there’s increased demand, it pushes prices up.
-Other technical analysis indicators: Things like volume, price action, moving averages, and RSI can help you determine the trend of the market. This will help you set your targets accordingly.
It’s important to remember that no one indicator is ever 100% accurate and it’s always best to combine different indicators together to get a more accurate reading.
Once you have a good understanding of the market indicators, you can start setting your targets.
Here’s an example:
If you’re trading Bitcoin on BitQT and the market is in a bullish trend, you could set your target at the 50% retracement from your entry price to the low point on the chart. This would be your profit-taking point. You could also use other technical indicators like volume and price action to help you make your decision.
If the market is in a bearish trend, you could set your target at the 50% retracement from your entry price to the high point on the chart. This would be your profit-taking point.
In either case, it’s important that you’re aware of where these retracements are on the chart. NinjaTrader’s Fibonacci tool is ideal for this because it makes it easier to find these levels. It also helps determine where a stop loss should be placed so there are no surprises if the market turns against you.
But targets don’t have to be based on technical indicators or price actions alone. Get creative and do what works for you. It’s important that your targets are set before you enter the trade so you know exactly where to take profits if the price goes in that direction.
Bonus Tip: Best Ways to Sell Crypto
Okay, we hope that all the ways to set targets when selling crypto are clear now. All the important factors that influence the outcome of this task. But, before we end this part, there are a few more things we would like to explain. Before you set targets, it is crucial to know which methods of selling crypto are the best ones. We are pretty sure you have already heard certain tips on this subject, but we will highlight all the best possible ways to sell your digital funds. Let’s go!
Crypto Exchanges
As you could guess, the best possible way to sell your crypto is via crypto exchanges. That is the quickest and easiest way to turn your BTCs, ETHs, or any other crypto into money. But, finding the best exchanges is not that easy as you will need to look for those that truly feature quality.
In other words, you should find those that will strongly keep your data safe. You do not want to allow others to get access to your bank account, credit card, or any other confidential data, don’t you? On the other hand, there are also some exchanges that do not support all the fiat currencies. For example, some of them will not support USD. If you live in the United States, this could represent a big problem for you.
Sell Crypto and Get Money with PayPal
PayPal is, without any doubt, one of the most popular e-wallets in the entire world. This payment provider is available in almost the entire world (with certain exceptions). However, did you know that you can also connect your PayPal account with some other platforms and get money for your cryptos? One of the platforms that will allow you such a service is Coinbase.
But, there is one CRUCIAL thing that you need to know. You will not manage to buy digital currencies that way. All you can do is to sell your digital currencies on the platforms of that type and convert your funds into Euro, British Pounds, or Dollars.
Sell Crypto with Your Credit Card
We know that most people decide to work with crypto because of their decentralized network. But, that doesn’t mean you won’t need the assistance of some traditional banks and other financial institutions in some cases. If you are an active user of credit or debit card, then certain platforms allow you to use it to sell digital currencies. More precisely, you can transfer the earnings you established directly to your VISA or MasterCard.
Unfortunately, there are certain limitations that you need to be aware of! These limitations refer to the amount of money you can withdraw. But, if you properly verify your account, then you will not have the problem of that type.
What about the fee? Well, the fee varies, but it is usually not higher than 3%. In most cases, it is around 1.5% which is pretty affordable.
So, which of these options looks as the most attractive one?
Closing Remarks
Setting targets can be an effective way to sell your cryptocurrencies. But it’s important that you pick the right indicators and the market conditions are conducive for this strategy. Otherwise, there’s a high risk of riding your investment all the way down to zero. You keep up with the events happening around the crypto markets as this helps you make the right decisions.
