It comes with no surprise that it takes a lot of faithto not sell your Bitcoins. Once a new bullish movement takes over the market, it’s hard to recognize the right time to sell your Bitcoin possessions.
At the time when bears are in full force, your most popular thought would be to hold on to your possessions and perhaps buy some more Bitcoin as the price drops.
But when can you say it is the right time to sell your Bitcoin? Well, this is the question a lot of investors are pondering upon.
Let’s find out the answer!
Bitcoin Price Volatility
Image Source: CoinMarketCap
The Bitcoin price hasenjoyed a period of relative stability for quite some time. What cannot be turned a blind eye to is its volatility that had hit its lowest point on March 16, 2020, by touching USD 5031 in a year.
There was even a time when the leading cryptocurrency reached close to USD 3000.
Where it can be tempting to see such a price drop and sell your bitcoin in panic, it cannot be considered a wise choice.
When it comes to cryptocurrency trading, you must be careful when dealing with an online system. You must learn all the essentials of the cryptocurrency buying and selling industries before investing your money. Bitcoin Hack review is one such system and the founder of the program does not even reveal his or her face or name in the website. Moreover, the robot uses misleading claims in order to lure you into depositing your money. Therefore, it is recommended to invest your money on high-quality websites, and avoid falling victim to scam robots that try to hoodwink people.
3 Strategies to Know When to Sell Bitcoin:
1. When Volatility is Good
Digital currency day traders flourish in a price market that’s unstable. If you’re able to catch the price on the right side, then a reasonable price increase through the span of 24 hours truly offers the chance to buy low and sell high.
Well, it is a bit risky. It can be a move that can backfire for an under experienced trader. If you are a high-risk taker, such a volatile price movement may be the right time to sell Bitcoin only to rebuy it. Take your chance only when you’re prepared to lose your investment.
2. HODLing: A Long-Term Strategy
A better strategy might be to take your Bitcoin as a long-term investment. Let the price go up and down at its own intervals. You optto sell only when you’re ready to retire.
It has its own risk as well since no one can predict the Bitcoin price after a month, a year or a decade.
Not only is the Bitcoin price fluctuating, but regulations too are surrounding its legality. You should go for it only when you’re a true Bitcoin believer.
3. A Midway Strategy
In case you are willing to take an approach that joins day trading with HODLing, you can choose to sell a portion of your Bitcoin while holding onto the rest. This will allow you to take advantage of the price volatility and sell high without risking your entire investment. Simultaneously, it leaves a piece of your investment intact with a long-term approach.
This methodology too takes a lot of time and risk. For this approach, you need to pre-decide the percentage of your Bitcoin holdings you want to sell and what you wish to keep so that you can take your chance at the right time.
Other Useful Considerations
Apart from selling depending upon the Bitcoin price in INR, you can likewise sell based on the amount of your total net worth in Bitcoin. In case Bitcoin represents a large part of your net wealth, you may wish to think about selling.
Else, after the asset appreciates, an investor can sell sufficiently to cover the cost of their underlying investment in addition to taxes. That way, everything staying in the market is unadulterated profit, and regardless of whether the asset drops in price the following day, the investor has already pulled out their underlying investment, so they have considerably less to lose.
So use a Bitcoin trading app to sell your Bitcoins safely and securely!
