While many people draw a great similarity between the stock exchange system and the cryptocurrency system, the cryptocurrency market is quite different, being a highly volatile market. While stock exchange experts recommend holding on to stocks for at least five years, this may not work with cryptocurrencies. Simply take into consideration Bitcoin, the most happening currency in the crypto market, creating a lot of buzz. While at an all-time high of $68,000 in November 2021, Bitcoin price has dipped to around $20,000 with a downfall of almost 70% due to inflation. Understanding the cryptocurrency market without a bit of study and research or a reliable trading platform at https://bitiq.org/. In this article, we will discuss understanding the right time to sell bitcoin. So let’s start;
When To Plan For Selling
It’s not like your trade without a plan. Even in cryptocurrency trading, you must plan for a sell under the circumstances:
Value is Doubled:
With a volatile market like that of cryptocurrency, prices can surge and drop anytime. If you find the cryptocurrency price has gone high, don’t wait for much; track the plight until you find the price has suddenly doubled. Take your call and sell at least a good portion of your holding to get a good profit mark over your entire holding.
Check Signs of Drop:
Check for some signs in the cryptocurrency market to decide if you need to sell your holdings right away to secure losses.
- The community of that altcoin is reducing
- The exchange management system is not helpful for you
- There is no movement in the crypto coin you have invested in
- There is any better opportunity for investment for you
- If any of your crypto holdings is being surpassed by any other digital currency leaving your invested currency at greater risk of a bitter drop
Tip for Selling Bitcoin
A buyer looks for a reliable seller with a good vendor record and reputation. Since it is a decentralized market working solely on reliability, data security, and P2P network system, selling can be easier if you follow a few tips.
There could be a lot of odds and issues in a transaction or requirements of a buyer. As a seller, you must project a reliable and trustworthy stand for a buyer to get in transactions comfortably. However, you should also adhere to the required security with your cryptocurrency holdings to avoid fraudulence.
Clear and Direct Instructions:
When a seller wants to sell his crypto holdings, he might have some terms regarding payment module, mode, transaction timing, etc. All of which should be clearly instructed.
Transparent Term Offerings:
This is a list of your requirements and how you want to operate a trade. This should be detailed and simple to understand, for this is the first thing a potential buyer review. Like mention all documents you need, ID proof or picture, cash receipt, whatsoever.
Reliability and trust build up on blocks of factors like reputation, review of a seller, flexibility, clarity of information, and responsiveness. Most deals end up nowhere since the vendor is not responsive enough to professionally respond to a query asap.
Avoid Third Party Payments:
When you are selling your cryptocurrency holdings, you are either dealing with assets, other cryptocurrencies, or fiat currency. Whatever the deal, make sure the payment of cash or fiat currency is direct without any third party, or in the case of an asset or digital currencies, make sure that the exchange is reliable to keep your earnings secure.
Thoughts Before Selling
Before pounding on a deal or finding a buyer; it is important to decide how much you want to sell and if you are sure enough that you want to make a sale. Study the market, and the movement of your cryptocurrency value in the market, and accordingly take your call. Check for your tax liabilities; for long-term holding in cryptocurrencies, you need to pay taxes. However, long-term tax is lower compared to short-term cryptocurrency gains, so if you near around the mark of a year, wait around, if possible, to lower your tax liabilities.
Therefore, selling your Bitcoins or cryptocurrency could be smooth and hassle-free only if you take a while to plan for it and take the right steps to manage the selling. I hope you like this article on understanding the right time to sell bitcoin.