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- How to Take Profits in Crypto? Long-Term Trading Strategies
How to Take Profits in Crypto? Long-Term Trading Strategies
Proactive Tactics for the Future: How to Take Profits in Crypto
Business by its very nature is all about seeking out opportunities for profit. The business of crypto trading is, of course, no different. However, understanding how to take profits in crypto takes time and effort. There are several different ways for an individual trader to approach crypto currency. All these strategies have been proven to work and be viable when implemented correctly and with the discipline they demand. It is up to the trader to pick the strategies that best suit their needs and character and figure out how to employ them into their trading ventures. All of this is possible with the right amount of patience, research and dedication to crypto trading.
The crypto trading market has the potential to be highly profitable, but catching a lucky break should never be an aspiring trader’s target. You should always be aiming to reach a level of somewhat consistent, successful trading. In doing so, you will constantly be pushing yourself to evolve as a trader, thus tipping the scales in your favour in the long run.
A good trader should always be asking themselves (and others) how to take profits in crypto. There will never be a single answer that solves everything, so developing a diverse set of knowledge, thoughts and points of view should be your number one priority. That way, you will never (or at least less frequently) be caught off guard by the market’s constant, hard to predict twists and turns.
An adequate understanding of how to take profits in crypto is earned one step at a time, through both success and failure.Arguably, the best way to take said steps is by employing long-term strategies to your crypto trading endeavours. Contrary to reaction based, quick profit strategies, long-term ones give you plenty of time to carefully study and analyse them through many different scenarios. Of course, short-term strategies are just as viable, but serve different purposes and offer other benefits. But this is a lesson for another time. For now, let us look into the answers to the question ‘how to take profits in crypto’.
Long-Term Strategies and How to Implement Them
One of the most common and easiest to employ strategies is called HODLing. HODLing is one of the most popular techniques in the crypto trading market and is a great way to keep researching ‘how to take profits in crypto’, while also staying engaged. It refers to the action of buying an asset with the intention of keeping it in your possession for an extended period of time (usually one to three years). By practising ‘HODLing’ a trader’s goal is to benefit from long-term value appreciation. At the same time, HODLing essentially nullifies the effects that the notoriously volatile crypto trading market has on assets. Short-term strategies are all about carefully monitoring market fluctuations and adeptly reacting to them, which is of course easier said than done.
However, with this strategy a beginner trader can ignore all this ‘noise’ and focus on understanding the ways the crypto market works, while simultaneously having made a promising investment. This technique can provide different benefits to more experienced traders, as it allows them to be looking for other investment opportunities at the same time, thanks to its passive nature.
It should be noted that like with any other strategy, HODLing does not come without its own risks. Holding onto an asset for such a long period, you will inevitably have to go through some extreme highs and lows with it, due to the extreme volatile nature of cryptocurrency. The problem is that lowest lows could lead to liquidation of an investment, so HODLing demands a certain capital capacity from the trader. Moreover, holding onto an asset for an extended period poses the risk of fraudulent activities affecting its value in the long run. Cryptocurrency is not only an unregulated currency, but it is one with a very short history. These factors make it all the more difficult to predict and make sure your investments are safe.
Another long-term strategy you could consider adding to your repertoire is Dollar-Cost Averaging (DCA for short). Finding the right time to invest into crypto can be tricky to say the least. It could take years of practice and even then an investment is anything but a guarantee. In this strategy, you invest a fixed amount of funds on a specific asset of your choice. These investments are made on a regular basis over an extended period of time, regardless of the prices at any given moment. By implementing the Dollar-Cost Averaging strategy, you can save yourself the trouble of trying to pinpoint the exact moment that would be most beneficial for you to invest. At the same time, the effects of an extremely volatile market are limited to a certain extent. Because of its automated nature, DCA is quite easy to employ, even if you’re not the most experienced trader.
Crypto Staking: What is it and Why you Should Consider it
We already covered some of the most basic long-term strategies that have proven to be lucrative for many investors worldwide. Also, we have established that a trader can approach the task of learning how to take profits in crypto from a multitude of different angles. Actively employing trading strategies, whether they may be short or long-term ones, is not the only way. There is a similar kind of investment technique that despite the passivity it engenders, can be highly beneficial to trader’s of any aptitude and experience. Said technique is called crypto staking and is used by a lot of people. To stake crypto all you have to do is keep your coins ‘locked’ in your account and earn from interest. Sounds pretty simple, does it not?
To get started you first need to make sure you have the crypto you have stored in your NAGAX Crypto Wallet. In case you do not, you could buy coins straight from NAGAX or transfer them from a different wallet of your choice. Then, you need to stake your coins for a minimum of fourteen days. However, there is no maximum staking period in NAGAX’s Stake & Earn, so you can take it easy while your interest goes up!
It goes without saying that a smart investor should always be researching for the best options in the market, regardless of the subject. Staking your idle coins and actually earning from them sounds enticing enough, but despite the passive nature of this technique it should by no means be left to chance. Picking out the best platform to stake your coins is essential, as there are many factors that could make or break your efforts. Choosing NAGAX as your go-to platform for staking your idle coins, offers multiple benefits that simply cannot be overlooked.
We have already established how flexible NAGAX’s Stake and Earn process is. Thanks to its very low fourteen day minimum staking period to its limitless maximum withdrawal period, NAGAX offers you the ultimate freedom in your endeavours. Its low minimum staking period when combined with the equally low staking minimum, makes it as accessible as possible and the perfect choice for any investor. The rewards for staking coins are calculated on an annual basis and are adjusted to the actual period they were frozen. Owners of NAGA COIN (NGC), stand to benefit from higher returns on their interests of up to 8% annually on specific coin staking.
Currently, NAGAX offers the option to stake ten different crypto coins (BTC, ETH, BCH etc.), thus making it highly versatile and accessible to most interested investors. When choosing a platform to stake your coins in, your investment’s security is of the utmost importance. By choosing NAGAX, you basically eliminate all such concerns, as its state of the art algorithms and systems in place, not only protect your funds but actively improve and strengthen the blockchain. Last but certainly not least, your investments are not bound in case you change your mind within the first fourteen days. NAGAX allows you to easily withdraw your funds, without any kind of penalty, before the minimum staking period. By doing so, you simply will not be earning any rewards.
Crypto staking is a procedure that could be of benefit to both novice and veteran investors. It is easy to execute and requires little knowledge of crypto currency, while also demanding no monitoring, which makes it ideal for an inexperienced trader. However, its long-term value on your trading growth is up to you and how you choose to go about staking crypto. For example, a trader with the right mindset would take advantage of staking crypto hands-off nature to study the crypto trading market, while also remaining active and on the course for future gains. On the other hand, you could see it as a shortcut to quick profits based on return interests, which is of course possible, but also very restrictive and may slow down your development as a hopeful trader.
Established crypto investors could make good use of crypto staking as well, albeit for very different reasons. Crypto staking allows them to make use of idle coins and earn from interest returns, without any effort. Therefore, it makes their overall crypto trading strategies much more efficient. Furthermore, the luxury of a strategy that requires absolutely no monitoring whatsoever, opens up the way for them to implement two or more strategies at once. Needless to say, successfully managing multiple strategies at the same time can improve a trader’s skills, as well as potentially yield even greater rewards. Finally, the very act of staking crypto, improves the blockchain and helps it operate in a more secure manner.
Final Thoughts on Crypto Profits and Long-Term Trading Strategies
Finding a definitive answer on how to take profits in crypto is a complicated matter that branches into multiple subjects. Although it cannot be distilled into a single sentence that instantly solves everything, it can definitely be broken down into certain core elements:
- You should always be searching for ways to understand how to take profits in crypto.
- HODLing is an effective long-term strategy that eliminates many of the issues beginner traders may be facing.
- HODLing demands a certain capital capacity from the trader and leaves you open to possible fraudulent activities from third parties.
- By implementing the Dollar-Cost Averaging strategy, you can limit the effects of market volatility, while making investment timing much simpler.
- Crypto staking is a viable alternative to long-term trading strategies, where you lock your idle coins for a certain period and withdraw them afterwards, along with their interest returns.
- NAGA’S Stake and Earn offers a low staking amount minimum, with just fourteen days minimum staking period.
- NAGAX offers a wide range of ten different crypto currencies available for staking.
Risk Warning: Cryptocurrencies are highly volatile and trading can result in the loss of your invested funds. Before investing you should be aware that cryptocurrencies may not be suitable for all investors. You should therefore carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition and not invest money that you cannot afford to lose.