Most rookies tend to sell their coins the moment they dip just a little. These dips are used by professionals to buy the coins rookies sell, for much cheaper and profiting from that afterwards. But how do you understand when to sell and when to hold? Here are some factors that people suppose to be influential on a token’s price and the TLV number, while they often aren’t.
World meaning events, that don’t really mean anything for crypto
Always remember that crypto is only tied to the stock market and has almost nothing to do with important, but rather distant from blockchain events. Wildfires in Australia or the Taliban Afghanistan invasion would affect the world economy, but not the crypto market. However, the pandemic or the russian-ukrainian war would certainly do, because of how many structures important for proper blockchain work were destroyed by the pandemic and how many of them are held in Ukraine and Russia.
The advice here would be analysing what crypto has to do with the sector, affected by the event happening and trying to predict the future influence of this event.
A key person leaving from the project or the lose of an important partnership
When a founder, promoter or the team-leader leaves the project people stop believing in project’s future. The same happens when the project breaks it’s partnership with some big player, who used to help the project’s team with promotion.
However, in most cases such decisions are made, considering the future plans of the team and mind the risks and opportunities they take.
Here we would advise checking on who is the important person changed to and what the new executor is famous for. Sometimes, experts search for new prospective projects to gain experience and have more future opportunities.
Overhyping the project or not giving it enough promotion
An often mistake made by the project’s team is promising too much. That leads to interest loss after the launch because of investors’ unjustified expectations and obviously the token price dumps too.
On the contrary, some projects don’t attract enough attention with their marketing even though they offer great ideas and execution.
This could sound very obvious, but always remember to look at the project’s social media and compare the information about the project given there to what the team actually has to offer.
Fake news because of rivalry
Some projects try to overtake their competitors by spreading rumours about them. Such lies are usually classified as fakes, but the project can lose much money because of such dirty plays. This tweet disproves an article made by Rekt (an editorial, specialised on DeFi), that was used to spread fakes about the Fantom blockchain and make the net’s token lose value. Even though the article was proven wrong, the situation was still crucial for Fantom.
That’s why you should always check different sources of information before making decisions (this advice is also highly applicable to your everyday dilemmas).
The rivalry can also simply kill the project because it became outdated and others have misplaced it as well as the lack of utility
Dogecoin has been losing it’s price for the last 6 months constantly just because the coin has zero utility and is easily outrunned by more innovative solutions. Even though Elon Musk himself tries to pump Doge from time to time the coin is still dumping.
The conclusion to everything said above would be advising to always personally check on every parameter of the asset you are planning to sell before doing the thing, so you don’t lose any yield because of your carelessness.