Bitcoin Cash Rallies 20 Percent. Take Profits Now?

Take Profit Cryptocurrency

 

On April 22nd, the Bitcoin Cash (BCH) jumped by almost 20%, reaching $1400 level briefly. As the BCH price action chart shows, the BCH/USD pair had a meteoric rise from about $545 in early April to about $1400 by 4/22. And as the chart shows, it has a potential to rise up to $1800, until it hits a major resistance level.

BCH price action chart

Then the question is: Is this the right time to take 100% profit, or split the profit levels as the price continues to grow?

How and when to take profits from cryptos?

Just as in FX trading, one needs to be disciplined in Cryptocurrency trading also. For example, before taking any trading decisions one needs to be familiar with the general market trend of the subject pair, as well as recent peaks and valleys. In particular, cryptocurrencies are highly volatile, so a little understanding of some of the charting tools, such as, Fibonacci retracements would be helpful too!

Price action charts also help! However, one can use price action charts in order to devise a ‘Dollar Cost Averaging (DCA) Scheme,’ for buying and partial profit taking for selling. The DCA scheme is the time honoured mechanism by which seasoned traders accumulate coins, while taking partial profit as the price is increasing helps to systematically book profits.

 

Book a 1-to-1 Consultation with a Professional Trader

 

Make Coin Volatility and Diversification Work for Profits.

There are probably more than three hundred coins, ICO offerings, Blockchain investments and cryptocurrency futures. Furthermore, all of these instruments are highly volatile and reach peaks and valleys in the price at different times. The price values of these coins are also extremely diverse. They range from a fraction of a dollar to several thousand dollars. With such diverse pool of investments to choose from, one can always book a profit in a highly appreciated currency and reinvest back in the currency that is undervalued.

However, this requires a disciplined approach to rotating currency investments, such that your portfolio is always on a positive trend.

Long term Crypto Investments.

Short term or long terms investments in the crypto space refer to different time scales compared to equity investments. A year is a very long term holing period in the crypto world. In that respect, holding the premiere five currencies for a long term appreciation is also a strong possibility. Recall that in 2017 – the price of Bitcoin had jumped from about $1000 in January 2017 to about $20,000 by December 2017.

Reach out to Advisors at Platinum Trading Institute:

The Platinum Trading Institute (PTI) advisors can also teach you on how to devise a prudent profit taking strategy.

 

START YOUR CRYPTO JOURNEY TODAY DOWNLOAD OUR EBOOK

 

Earnings Disclaimer:

The information you’ll find in this article is for educational purpose only. We make no promise or guarantee of income or earnings. You have to do some work, use your best judgment and perform due diligence before using the information in this article. Your success is still up to you. Nothing in this article is intended to be professional, legal, financial and/or accounting advice. Always seek competent advice from professionals in these matters. If you break the city or other local laws, we will not be held liable for any damages you incur.

 

By | 2018-06-13T10:26:38+00:00 April 25th, 2018|Crypto|0 Comments

About the Author:

Dr. Jayesh Mehta
Nationally recognized Advanced Technology leader with over 25 years in the Aerospace Industry. Sustained track record of providing innovative solutions to advancements in the gas turbine and alternate energy fields. Dr. Mehta is an innovator and a passionate financial analyst who has turned his attention now to intricate world of FOREX and Crypto trading education. Academically, Dr. Mehta shares Mr. Nirav Shah’s passion for developing algorithmic strategy based trading approaches for financial instruments applied to FOREX, Crypto, and Equity markets. As a part of his MBA in financial engineering at Xavier University, Dr. Mehta had developed and published several peer reviewed papers on Black-Scholes options models in flagship financial journals.

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