Investing in crypto has been a wild ride so far in 2021, with the value of popular coins swinging back and forth over the past few months. The price of Bitcoin recently dropped below $30,000 after witnessing a meteoric rise earlier in the year. This pattern of wild fluctuations is forcing crypto investors to consider selling their Bitcoins. It’s important to know when to buy and when to sell Bitcoin.
While the price moves can be drastic, they also create massive opportunities for some investors. Apart from BTC, other valuable cryptos such as ETH and LTC have also recorded heavy selling lately.
How do I know when to sell my Bitcoin?
Here are a few tips to help you decide when to sell your BTC.
The key point is, sell it when you have achieved your goal.
The rule of thumb in crypto trading is simple — in order to make gains, you need to sell Bitcoin at a high price. Rather than panic-selling your BTC, you need to keep monitoring the market and ensure that you create your sell order only when the price surges to the highest point. It’s a smart decision to set a price target for yourself. You should also consider moving your coins to an exchange that allows you to automatically sell your Bitcoin when the price reaches a certain level.
You are too anxious about your investment
There will always be times when investors have sleepless nights because of Bitcoin price changes. Crypto charts often look like a rollercoaster ride, jumping up and down seemingly randomly. These unpredictable moves can fill your mind with doubt and fears of missing out on gains or losing your shirt. As your anxiety grows with each and every dip in price, it can be hard to stop yourself from pressing the sell button.
After all, you can’t know for sure if your assets will bleed away in broad daylight. In such a situation, most people end up cashing out on their crypto assets even though they might not be getting the best price. Investing in volatile digital currencies has always been a big risk, so it’s up to you to make your calculations and weigh your profit margin before selling out of panic.
You know of a big investment opportunity elsewhere
Like any other investment, you need to move your money around when you think better opportunities exist. There may be several crypto startups with promising ICOs and other attractive features. As long as you are convinced the grass is greener elsewhere, go ahead and sell your BTC and explore new markets. This could turn out to be a better long-term investment than keeping Bitcoins.
However, one thing you should note is to be mindful of fraudulent scams as scammers will take you for a ride if you fail to research the opportunity before pouncing on it.
You have an urgent need for money
If you are hard up and need money ASAP, selling your BTC maybe your best option, especially if you have no other way of getting money in an emergency. While the market conditions at that time may not be favorable, it may still be a better financial option to cash out some of your Bitcoins to solve your financial problem rather than borrowing money. Overall, the decision when to sell your Bitcoin is a matter decided on your own circumstances and situation.