Cryptocurrency markets are not an easy ground. Markets are crazy and greedy through the bearish and bullish trends. This market is not for the faint hearted.
Bitcoin buyers typically buy when the market is in their favour and they ride through the ups and downs. When you read the chart patterns you know the price might go up or down. The signal is typically clear, but the point is you can never be sure when the event will occur. Timing the market is the hardest.
When you invest in cryptocurrency, say Bitcoin you are advised to hold. Hold for how long and for what? The point is the opportunities to make money is not only there in the world of cryptocurrency, but also in tons of other industrial sectors. There are risks and rewards in every industry. The idea of HOLDing forever might not be practicable for those who live by paycheck to paycheck and for those who have invested their little piggy back savings in to cryptocurrencies hoping to make some profits.
When an important expenditure comes and you to not have any other way to go about it, you obviously need to cash out your crypto. And, when you cash out if the market is bearish it is your bad luck and if the market is bullish it is your good luck. Enough is never enough for human minds.
Periodic profits from cryptocurrency makes sense. And most of them feel they need to their profits as they go way up. The thing is the market never goes up forever, nor down forever.
Some of them are traders who are in to the cryptocurrency space and they are trying to buy and sell crypto while making more out of the fiat value they have accumulated. Cryptocurrency is an asset for them to ride through the bulls and bears with the motive to elasticize the value they have invested. They are in to make profits.
There are others who are not traders. They have a whole lot of stuff they claim to be dealing with like inflation and preserving their wealth. They are about financial freedom. And they are not about profits.
The point is when you take profits from cryptocurrencies you have to pay the taxes and transaction fees. In some cases, you might land up in unnecessarily high tax brackets.
Sometimes after you sell thinking you can rebuy it, the price might never come back to that low price ever again. So, when you invest in Bitcoin or any altcoins you might be dealing with situations where the price is forever going up and once you sell you are not able to get it back for the price you sold the asset for.
The cryptocurrency markets moves in extremes. Common sense states when you enter the market enter at the dip. Buy when there is blood in the market.
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