Take profit for cryptocurrencies: the best way to take profits on time

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

In addition to significantly lower overhead costs and commissions, the platform also allows you to use stop orders—stop loss and take profit.

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

But besides losses, there is also profit, which must be secured in time by closing the existing transaction.

We've all experienced the situation when we wake up in the morning and discover that the price of the cryptocurrency we bought rose to its highest level overnight, only to fall again by the morning.

In order to avoid resentment for missed opportunities, a method of securing profits was devised by placing take profit.

This tool allows you to automatically close a trade once the price reaches a predetermined level. You can set a Take-Profit immediately when opening a new trade or for an existing position.

Technical aspects of setting take profit

Let's look at this process using the example of the most popular trading platform, MetaTrader 4, and the most popular currency pair, BTC/USD. We open a trade to buy Bitcoin for US dollars:

With the current price of $56,839 per Bitcoin, it is logical to assume that the price will reach the $60,000 mark and then reverse.

Therefore, we set our take profit at a level just before this level, that is, at $59,500 per coin. Once the price reaches this level, our trade will be closed. The areas where the trend most often reverses are the primary reference point for setting a take profit.

In addition, it would be a good idea to immediately set a stop-loss order, which will protect against large losses if, instead of the expected growth, the cryptocurrency's price begins to decline. In this case, the transaction will close with a loss of 55,000.

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

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

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

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