If you’ve been trading in cryptocurrency for quite some time, you probably have first-hand experience in understanding that engaging in the cryptocurrency industry can be a wild ride.
Cryptocurrency trading has proven to be profitable – given the list of successful people in crypto – but it doesn’t mean that every crypto enthusiast is guaranteed to have the same fate. Since the first cryptocurrency, people have discovered different methods to earn crypto. To achieve the best chance of success, it’s important to consider the different possible ways such as selling cryptocurrencies. However, when is the best time to sell? Should you sell your crypto or not? Read on to know some tips before selling your cryptocurrencies.
When Should You Sell Your Crypto?
Cryptocurrency has gained popularity over the years as it has changed the lives of some people. There are many ways to earn in this field, and if you want to start your career on the right path, you should engage in trusted platforms such as Bitcoin Loophole. This platform allows traders to set up an account at an affordable rate and trade different cryptocurrencies. In addition, the platform also links you to trusted brokers in the market who are knowledgeable and skilful at helping you utilise strategies to earn, such as when is the best time to sell your assets.
Perhaps this is one of newbie traders’ most frequently asked questions in crypto. Selling your digital assets may be a part of your goals and targets, so it’s extremely important to know the answer to this question. To give you an idea, check out the factors that you need to look out for, which indicate the best time to sell your cryptocurrencies.
1. Increase in value
If your investment has skyrocketed its value since you bought it, you should probably sell at least a portion of your assets. For instance, you could sell what you originally invested in and utilise the remaining amount going forward. Given the volatility of the crypto industry, profits can quickly disappear. So to avoid potential losses in the future, it’s good to take at least some of your profits as protection.
2. Loss of hope
One of the most important parts of investing in cryptocurrency is knowing when to cut your losses. However, this won’t be easy to do since people are very passionate about the cryptocurrencies they buy. It’s wise not to get overly attached to any project and learn how to cut your losses in crypto trading. Some signs that crypto is going downward include showing no developments, having doubts about the management, and the crypto community getting smaller.
3. Better investment opportunities
The cryptocurrency industry and blockchain technology are rapidly developing. With the volatility of the market, cryptos may experience a skyrocketing increase or a dramatic fall. If other cryptos have surpassed one of your assets, it will make sense if you sell it. This move could be your way out before the crypto loses too much and you end up losing all your digital assets.
When Should You NOT Sell Your Crypto?
There are no certain rules or factors to look out for on when you should not sell your crypto. Because of the market’s behaviour, there’s no certain indicator that the good performance of your crypto will last for a long time. However, the most important thing to keep in mind is that you should not panic-sell just because the values have dropped. This action may cause you to have regrets later on.
If the values have dropped and you no longer think that the crypto can bounce back and still be a good investment, then you should probably sell. However, one price drop situation should never be the only reason to sell.
Factors To Consider Before Selling
If you’ve checked out the scenarios or market behaviours that indicate the best time to sell, the next thing you should understand is the factors to consider before selling your cryptocurrency. Here are 4 factors that could affect your transaction when selling:
1. Exchange Rate
The first thing you need to check out is the amount you’ll possibly get for selling your assets. Make sure to do extensive research and seek the best rates available. Whatever crypto trading strategies you may be using, the exchange rate significantly impacts how much money you get for your tokens. If the exchange rate is low, then you should expect lower gains when selling your crypto.
2. Charging Fees
Another thing you need to consider is the fees or charges that are associated with selling. Most platforms charge a certain fee for selling your assets, so make sure you know how much the fee is and see if it makes sense. The fee is applicable when selling because when you sell your crypto, you are transferring the ownership to someone else, which is recorded on the blockchain, and every transaction in the blockchain costs a small fee.
Knowing how easily you can sell your coins is also important. Some platforms have better liquidity than others, so make sure you pick an exchange that allows you to sell your coins easily and quickly. Before selling, your crypto liquidity must not be overlooked. Remember that it’s important to understand how liquid your assets are as they affect the potential to sell them.
Should You Sell Your Crypto or Not?
The final decision on whether you should sell your crypto or not is in your hands. As mentioned, the crypto market is extremely volatile, so make sure you don’t sell your cryptocurrencies as a result of panic. Understand the indicators on when to sell your cryptocurrency and check out the other factors you need to consider before selling your crypto.
Whether you trade out of curiosity, for fun or for a living, it’s important to know that cryptocurrency always has hard choices. You may not always make the right choice, but it’s better to do things without regret. Make sure to start slow, set a clear goal and do your research before investing your funds in cryptocurrency. Aside from all the factors that matter, you have the final say on when to sell your cryptocurrencies, so make sure to weigh in all the possibilities.
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. The writer may or may not hold investments in the companies under discussion
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