We have all read it many times - “Never sell at a loss!”. Especially for newbies it might be an important piece of advise as they tend to sell at the first major dip of a coin. However, this is a piece of advise which has to be taken with, AT LEAST, a grain of salt. Following and actively trading/investing in the cyryptomarkets, we can tell you that there are cases where you should definitively dump this “strategy“, if you can really call it one. We wouldn’t. Here are 4 examples when you should simply ignore that advise.
1. If your money could grow faster elsewhere
Imagine holding coin A (at a loss) in your portfolio with no potential trigger that could turn the tide anytime soon. At the same time, there is coin B which has enormous growth potential short term. Why not sell, enter coin B and make a profit? Remember, you can always re-enter later.
2) If you have made a stupid decision
Probably all of you have experienced it. You listened to a stupid pump and dump group. The dump was so fast that you are now holding bags. How about this example: a friend of mine listened to a call for DUBAI-coin. He bought in at USD11 and the coin went down about 50% within the next days. I told him, dumb that shitcoin and move to a project with strong fundamentals. He refused as he was stubborn and did not want to sell at a loss. I recommended different coins in the meantime which would have made him at least +35%!
3) If you have lost trust in a project
As we all know, many projects in crypto are meant to fail. Once you lose confidence in a coin and get anxious, it might be time to sell. Even at a loss. But your anxiety should be based on serious issues with the project, definitely not based on FUD and manipulative news. Always Do Your Own Research! However, don’t be stubborn and never get emotionally attached to a project. Even the best visions can fail for different reasons. Exit when the time has come.
4) If you can re-enter lower later
Sometimes you might enter a project right before a bear market starts. Once you have realised that this bear market will last a while and TA and experts claim that we will go down more (it doesn’t necessarily need to be correct, but it’s one of many indicators), it might be a good time to sell and re-enter later. However, its not always that easy to identify a long lasting bear market. However, we at CryptoMedics aim to help spot it.