What is the best time to sell your cryptocurrency?
The famous saying, “Lost time is never found again” cannot be more accurate in cryptocurrency. Out of many fundamental lessons in cryptocurrency, choosing the best time to sell cryptocurrency has the utmost importance. Be it trading on British Trade Platform, business, or any corporate sector, making decisions at the wrong time can give you daunting nightmares. It is one of the many mistakes crypto traders attempt, either in hassle or lack of knowledge. Hence, find themselves in deep water after losing their precious cryptocurrency for zero returns.
Whether it’s the trillion-dollar bitcoin or any expensive altcoins, the dilemma for selecting the best time to sell cryptocurrency remains the same. From the high volatility to the fluctuating market trends, there are many factors that need to be considered to sell cryptocurrency at the right time. Let’s have a look at our collection of these factors.
- See the Options:
Keeping in mind the buy low, sell high formula, the very first step to find the right time is to see options around you. A decade back, the crypto world was not as gloomy as it is today, especially the trillion-dollar bitcoin. Therefore, it’s not necessary that you get the best offers every time on your screen; otherwise, all would have been crypto millionaires.
A good rule of thumb is to set a target selling price for your crypto, which should obviously be more than what you bought for. We don’t suggest you be greedy but wise as cryptocurrency can anytime surge or dip in price, depending on price volatility. Also, implementing a stop-loss strategy proves a helpful option in choosing the right selling price for your coin.
- Type Of Trading:
In the light of recent variable price fluctuations in several cryptocurrencies, numerous crypto traders have moved towards short-term trading. Not only does this strategy help in making immediate profits, but it also allows you to hold your coin for a short time frame. In this scenario, you need to have a sharp eye on the market trends and explore every offer that seems reasonable to you.
Through this, you won’t have to wait much and sell your crypto at a favorable time. Whereas, in long-term trading, you hold your crypto for a certain period in any secure wallet. Next, patiently wait for the price to increase at least 40-50% and sell once it has reached the maximum suitable price limit. In this type of trading, most investors get a 10-20% profitable return on their investment.
- Risk in Investment:
This is a pretty rare yet essential factor to determine the best time for selling your cryptocurrency. Buying a high-priced or volatile cryptocurrency like Bitcoin is likely to put you at risk for your investment. Recently, we have observed this trillion-dollar cryptocurrency experiencing massive surges and sharp dips in price.
If you’ve chosen a highly volatile cryptocurrency, it’s important to strictly follow its price chart and determine the risk factors. In case you see frequent price fluctuations or ups and downs, then it’s better to sell a coin quite soon before the expected time than to lose it all at the end.
- Technical Errors:
Cryptocurrency is one of the rare digital assets that is not regulated by any human. Based on Blockchain, it operates on the basis of predefined mechanisms, which makes it so famous. However, when trading your cryptocurrency you’re likely to encounter technical errors that can flip the market in a blink of an eye.
From hacks, legality issues, ban on exchanges to any influential tweet, a number of factors can pose an impact on your crypto price. On observing such a relatable scenario, the best practice is to sell your cryptocurrency at a suitable price before its price drops to sea level.
Conclusion:
No one will come to your rescue to tell you the best time for selling your cryptocurrency. It’s only you who decides and gets prepared for the unpredictable results after making a deal.
Selling your coin when it reaches a skyrocketing price is nothing else than a fantasy that you must replace by taking practical, factual, and scalable decisions. Keep in mind the factors when choosing the most suitable time to sell your cryptocurrency with the least risk and highly profitable returns.