Best Time to Sell Cryptocurrency Ownings

Fredrick Awino
28.06.2022
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Any reader of this must already be aware that unlike the normal coins and notes that we use today to complete payments, cryptocurrency is an investment option and works like an asset. It is possible to own a cryptocurrency at one point and dispose of it by swapping, selling or withdrawing it into fiat money. 

WARNING: Investing in crypto, or other markets, can be of a high risk for your savings. Do not invest money you cannot afford to lose, because there is a risk for losing all of your money when investing in crypto, stocks, CFDs or other investments options. For example 77% of retail CFD accounts lose money.

As an asset and investment, crypto investors must properly time performance of markets. The strategy that is commonly applicable by crypto investors is “Buy Low, Sell High.” Despite this being a common strategy applied, there is always a disclaimer to it. How low is low and how high is high remains a subjective matter that investors must grapple with. One has to carefully decide own risk appetite and continuously monitor crypto volatility. 

Quick recap of crypto and it’s characterisation 

Cryptocurrency or simply crypto is a very common term in people’s lips nowadays. This new investment option is driving the digital world insane. Cryptocurrency works without depending on the government and banks. It gets even more exciting when you realise you can speculate and exchange cryptocurrency in the same way as a physical currency. 

When cryptocurrency pops up, bitcoin quickly lingers in the minds of  most people. Well, this is common since it was the first to be introduced. Bitcoin also remains to be the largest in the cryptocurrency market. But as you get well acquainted with cryptocurrency market operations you get to learn of other altcoins. 

As a starter, the exchange within the crypto market can be pretty complicated. For this reason, you need to get familiar with operations in the crypto market. Learn about the operations in the trading platform, on brokers, and direct trading. 

If you are into cryptocurrency trading and asking yourself, “When do I sell?” This could be the source of your answers. It is almost impossible to master the exact best time to sell your crypto ownings. And if there was an expert to determine the best time, then it would only mean one thing. They would be able to take over the cryptocurrency market.

Why is it Important to Know When to Sell Your Cryptocurrency ownings?

The goal of every investor is to gain a desired level of profit. So, to maximise your levels of profit from cryptocurrencies, you should know how to attract the best prices when selling. But before this, determining the right time to sell is key.

Knowing when to sell your cryptocurrency is not just for the purpose of getting to sell. The significance is however relevant in its set of implications. Learning and mastering the right time to sell helps you to understand the charts, set your targets, and your desired outcomes. Basically, it offers you a clear path when making a decision. 

Looking at the Bigger Picture when deciding to sell your cryptocurrency

The actions of selling and buying coins is not an act that is only glued to the cryptocurrency trading. People have always participated in the idea of buying and selling things to make profit since time immemorial. 

Take for example the stock exchange. You can invest in a company during its highs and also pull out when it goes out of business. When a stock is at its peak, there are only two best options for an investor. You can either sell your stock or hold onto it to see if its value would rise even further. 

This is always the most critical step for investors. As an investor if you fail in this step then it simply means one obvious thing. You have failed to decide what you really wanted out of your investment. 

You don’t need to have an expert knowledge of a stock trader to be able to understand the essence behind letting something go. What it means is that every individual has in them a natural sense of letting go. It is natural that as an investor, you would make sizable profits during peak seasons. If you sell your stock at this particular point, then you are destined to make huge money.

Selling cryptocurrency is not very far from this idea of the stock exchange market. You have the power to know when to let go of your cryptocurrency ownings. When the time is right, you can surrender it to someone else who may have found more value in it. All you need is to combine your natural sense with your technical knowledge and intense research to understand the crypto market.

Set Targets with your cryptocurrency holdings

What more would be necessary for you as a serious investor in cryptocurrency other than a clearly defined overall goal. Knowing your standpoint makes your decision making faster and less complex. With this, it is going to be easier for you to know how much is enough. 

However, if you are a long-term investor in the crypto business, the decision to sell would not cross your mind at any point. Such an investor will sail through with the crypto through its peaks and lows before the idea of selling even crops up. Such an investor would be willing to buy every dip and stay firm even with intense price speculations. Well, that could just be the potential person to sell to. 

There are however two significant aspects that one must consider. First, what your initial investment was. Second is to consider the duration through which you have witnessed a return on investment. While setting targets it is also critical to consider yourself as either a casual trader or one that has more to put at stake. 

Making a decision as to whether to sell or not becomes more complex when you have more investments. If you are not careful with the steps and actions taken, you may end up losing everything. Remember selling too soon and the prices keep going up would also make you lose out completely. It is true that the cryptocurrency market is associated with high levels of uncertainty.

When is the Perfect Time to Sell?

One sure way of understanding a cryptocurrency performance is to study the trend history. For you to understand its ability to offer returns is by looking at its performance in the past years. But a speculative investment mostly depends upon market price speculations. 

However, the common notion, “Buy low, sell high” is the most popular market truth practised in crypto trading. This strategy is somewhat easier said than done because predicting the highs and the lows is not always easy. 

With better investment options that are less uncertain, selling your crypto ownerships could truly be a viable alternative. But how about the following situations?

Returns on Investment has Doubled/Tripled

Given the degree of volatility of cryptocurrencies, the profits can dim very quickly. If your investment value has gone up, the next available option is to sell. Maybe you could sell the original investment value and keep the profits invested on the same. 

Lack of Confidence in the Crypto’s Long-Term Success 

When choosing an investment, you will definitely be passionate about it but never get too attached to it. Most people are often very passionate about cryptocurrency that they are buying and it is important to know when to cut down losses. 

When there is no longer much development going on and have so much doubts especially with management. Also when the community supporting your crypto keeps diminishing, then this could be the right time to sell.

 

Author Fredrick Awino