How Often Should I Buy or Sell Crypto

Unlike stocks that open the market for a specific time, i.e. called a market window, the Cryptos can be bought or sold at any given time on any exchange. There is no such market window in crypto but does that means you continue to buy and sell on the market to get a profit.

PC: Google.com

Well it totally depends on the people who do intraday that means buying and selling at any given time of the day and trying to close that trade in a profit on that day itself, it can be in 1 minute or 10 hours totally depends on the trade he is doing. I actually went How Often Should You Buy And Sell Crypto? which clearly explains to us how often we should do the trade on crypto.

How Often can I buy and sell Crypto

As I already said that there is no limit on when can you buy or sell crypto, but it totally depends on the goals. Like if your goal is to get crypto for the future then forget about the price and continue buying it as small as possible every day, week or month. This is basically known as Dollar Cost Averaging where the cost of your crypto is averaged based on how much you are putting it. Like I usually invest Rs 100 per day that means I get the crypto of the same amount every day and thus when the price is low I get more quantity of cryptos.

This way you are averaging the price of the crypto you are buying. Now again dollar-cost averaging is done in several ways like buying daily, weekly or monthly. So it totally depends on how often should you buy or sell crypto. This was all about buying, but what about selling. For me especially, I book some of my profits whenever the price tends to come down. That means if I bought for Rs 100 and the price went to Rs 150, I would book a profit of Rs 30 and keep the rest. If it goes below Rs 100 again I would start buying the dip. In that way, I am not only in profit but also averaging by buying value.

To be honest, buying the dip I do only for main cryptos and not all because when the market goes down a lot of alts suffer a lot and it takes years to regain their value. So again when buying crypto we should keep an eye on its price movement too. We should not lose more and should keep an eye on the risk too. Since the cryptos are volatile it's always better to keep a stop loss too, which actually prevents your losses to widen or to book some profit.

Posted Using LeoFinance ^Beta