Take profit for cryptocurrencies, the best way to take profit on time

Trading cryptocurrencies through a professional trading platform is not only more profitable, but also more convenient.

In addition to the fact that there are much lower overhead costs and commissions, the platform also allows you to use stop orders - stop loss and take profit.

We talked about how to prevent large losses using stop loss in the article on this page - https://time-forex.com/kriptovaluty/stop-loss-dlya-bitkoina

But in addition to losses, there is also profit, which must be recorded in time by closing the existing transaction.

We are all familiar with the situation when, waking up in the morning, we find that the price of the purchased cryptocurrency rose to its maximum during the night, and by the morning it had fallen again.

In order not to be offended by missed opportunities, a way was invented to fix profits by placing take profit.

This tool allows you to automatically close a trade as soon as the price reaches the planned level. You can set Take-Profit either immediately when opening a new deal, or on an existing position.

Technical aspects of setting take profit

Let's consider this process using the example of the most popular trading platform metatrader 4 and the most popular currency pair BTC/USD, we open a deal to buy Bitcoin for US dollars:

At the current price of $56,839 per bitcoin, it is logical to assume that the price will reach $60,000 and then make a reversal.

Therefore, we set the take profit to a mark before this level, that is, $59,500 per coin, as soon as the price reaches this value, our transaction will be closed. It is the places where the trend most often makes a reversal and is the main guideline for installation.

In addition, it would be a good idea to immediately set a stop loss, which will protect against large losses if, instead of the expected growth, the value of the cryptocurrency begins to decline, in which case the transaction will be closed with a loss at a price of 55,000.

After a buy order is opened on your chart, you will see two dotted lines, the upper one indicating the take profit, and the lower one the stop loss:

If desired, you can always change the take profit value, thereby increasing the possible profit size.

For sell transactions, you can also set Take-Profit, but in this case its value will be less than the price existing when opening the order.

If you want to automate the process even more and collect maximum profit, use trailing stop .