Before starting trading, you must remember 1 golden rule in trading. Namely “Buy when Cheap and Sell when Expensive” or which means buy low and sell high huh! Not buy high and sell low. Remember! Buy when it’s cheap or low and sell when it’s expensive or high!
Well, then how do you determine the right time to buy?
The most appropriate time to buy crypto assets is when the crypto price has decreased very deeply and there seems to be an upward movement. This is because there is a price correction after a sharp decline and prices will likely increase again. This condition is often referred to as Overbought in which the price has experienced a significant increase and has reached a saturation point due to sizable buying activity followed by profit taking that has caused prices to fall. However, after that there is a market consolidation where prices will reverse towards rising again.
So when there are crypto assets that are experiencing a sharp decline, these crypto assets can be entered into your watchlist!
Then how do you determine the right time to sell?
The best selling time for crypto assets is when crypto prices have risen too high in the short term, for example, going up by 100% -200% and prices are starting to move flat again before declining. Because after the price rises dramatically, there will be price adjustments. At this moment, the market begins to experience the saturation of buying actions which can cause prices to fall back.
So my last trading tip is to avoid buying crypto assets which at that time the price is high or for example, which has only gone up 100%. Because at that time it could be time for the price of the crypto assets to be corrected. So you must pay attention to whether prices have started to decline, and note which crypto prices are still undervalued or are below normal prices and which are included in overvalued prices or far above normal prices on the market!
At this point, I’ve given you tips on when the right time to buy and sell crypto assets. If there is still something you don’t understand, you can submit a question in the comments below. To learn blockchain and crypto asset trading, you can go directly to the indodax.academy page.