16 April 2021
In December 2020, Bitcoin’s price surged, crossing it’s all-time-highs, resulting in lucrative returns of more than 300%, which eventually led to a little decline. Many called it a price correction, wherein crypto industry experts even suggested to hold onto Bitcoin for the long term to reap more benefits or to invest small amounts like SIP - mutual fund. But it is a volatile market, are you willing to take the chance?
And this is just not the question about Bitcoin but also the other cryptocurrencies in the market such as Ethereum, Litecoin, Cardano, and many more; after all, there are over 5000 cryptocurrencies in the market!
Selling cryptocurrency is as much as a task when buying them, especially when it is a crypto bull market considering the volatility. The question that stands is whether - When to sell? How to sell? And how much to sell? Selling your holdings at the right time through the right medium can be very advantageous and profitable for you.
Strategizing and Planning along with Risk-management, are like the brothers bounding together in the crypto world. In case, if you don’t have a plan - well, worry not! We are here to help you strategize your plan, and if you already have one, then nevertheless, you can continue to read, in case, if you need to reconsider your plan. Also Read, Investing In Cryptocurrency This 2021
In this blog, we are going to discuss 7 Tips For Selling Your Crypto / 7 Crypto Selling Tips
1. Don’t sell your crypto through one exchange but use multiple exchanges to cash out.
2. You could follow many models to sell your holdings, such as - Bitcoin “Rainbow” Chart by Blockchain Center, Stock-to-Flow by PlanB, and Top Cap Model by Willy Woo. You can learn from these models and make an average from various sets of models.
3.“Regret theory” can help you to identify by placing yourself in scenarios to determine what set amount will you least regret, and help you strategize your plan accordingly.
4. You can also use tools such as “Stop-loss” - an advance order, facilitated by exchanges to sell your crypto when it reaches the price point.
5. The other tool would be “Limit sell order” - an order to sell your crypto at a specific set price when the market price reaches the price limit. Also Read, Crypto Trading Bot - All You Need To Know
6. When the market is surging, it is pretty natural for one to feel the greed of holding onto making a little more profits, and it is only natural. But you may never know when the prices would slip in. Therefore, you can maintain a targeted plan involving a set of levels to withdraw portions from every target you set.
7. Just like how one enters a market gradually, investing in a small portion of the money, in a similar way, you can scale out in small amounts intervals and then sell it.
You can sell your cryptocurrency through:
In-person Crypto-world revolves around volatility, so even if you have a plan to gain the ultimate profits, it is important not to get too greedy, as it may likely cloud your judgement. Always remember the golden rule - “Invest what you can afford to lose”, so when you take the chance of playing in the field, ask yourself whether - “What are you willing to lose?” The methods mentioned above can only help you to strategize, but ultimately, you know how much you can afford to lose. So do not panic, and keep your expectations realistic, and stick to your plan in order to mitigate the losses.