Holding Cryptocurrency Strategy: When to Sell Like the Experts

In the volatile world of cryptocurrency, the question of 'When to sell?' is always a hot topic. Some advise to 'HODL forever', while active traders prefer constant buying and selling to make quick profits. In reality, there is no one-size-fits-all formula. Each strategy has its own advantages and disadvantages, depending on the goals, knowledge, and risk tolerance of each investor. Here are three cryptocurrency holding strategies recommended by experts, along with specific examples to help you make confident and smart investment decisions.

1. Short-Term (From a few days to a few weeks): Quick Transactions, High Risk Features Objective: Take advantage of short-term price fluctuations to make quick profits. Strategy: Focus on coins with sudden upward trends, closely follow rumors, market trends, or momentum-building events, for example, meme coins, AI-related tokens, etc. Advice Identify entry and exit points: Set clear profit targets and adhere to a selling plan when reaching a profit level or stop loss. Pay attention to market trends: Always monitor market movements to not miss out on breakthrough opportunities. Real-life Example A trader can 'flip' SOL from $185 to $285 in just a few weeks, making significant profits by capturing the sudden trend of this coin. Mistakes to Avoid Keeping the coin for too long in short-term trading can turn profit opportunities into a "black hole" when the market reverses.
2. Medium Term (From a few months to a year): Keeping Up with Major Trends Character Objective: Hold coins that have the potential to explode with market cycles. Strategy: Invest in strong altcoins with clear drivers such as events, technological innovations or strategic partnerships. Advice Choose potential coins: Look for coins like ETH, LINK, AVAX,... with strong resilience and development according to market cycles. Market Cycle Monitoring: Understand that the cryptocurrency market has its own cycles; For example, a bull market can last 1 to 2 years, while a bear market can reduce the value of altcoins by up to 80% or more. Practical examples An investor can buy ADA when the price is only about $0.3 and sell when it reaches $1.2 in a few months, making a profit 4 times the initial investment. Mistakes to Avoid Holding altcoins throughout the bear market cycle without a proper stop-loss strategy resulted in significant losses.
3. Long Term (Many Years): Asset Building Strategy Features Goal: Build wealth through investing in top-tier coins with a solid foundation. Strategy: Focus on Bitcoin and Ethereum - coins that have proven their ability to survive through any crisis and have a long-term growth trend of approximately 4 years(. Advice Bitcoin and Ethereum are considered "insurance" in the cryptocurrency market, as they always stand up to market fluctuations. Patience: Long-term investing requires perseverance and the ability to endure short-term bearish periods to achieve high returns in the long term. Real-life Example If you bought Bitcoin in 2017 at around $3K and held until 2021, you may have witnessed the price of Bitcoin rise to $69K - a clear testimony to the power of long-term investment strategy. Mistakes to Avoid Do not "cover" all types of coins in the long-term strategy; not every coin has the ability to survive and grow over time. Conclusion Determining the timing of selling and holding cryptocurrencies depends on the individual goals and risk tolerance of each investor. Below is a summary of three strategies: Short Term: Suitable for traders who want to make quick profits but need to have a specific plan and closely follow market trends. Medium Term: Choose to invest in coins with explosive potential according to market cycles, but be cautious of risks in bear market phases. Long Term: Build assets through major coins like Bitcoin and Ethereum, requiring patience and a solid investment strategy. Without a clear plan, investing in cryptocurrencies can become a gamble. Research thoroughly, set specific goals, and always follow market trends to optimize profits. Are you a short-term trader, a medium-term investor, or someone following a long-term strategy? Choose a method that suits you and share your opinion.