It’s been more or less 10 years since Bitcoin trading has begun. Cryptocurrencies like Bitcoin have gone up and down. But even now, cryptocurrencies are still hot in the market.
Well, why wouldn’t they? Imagine how much you could’ve earned if you invested in Bitcoin and bought some in 2013 when the price of Bitcoin was $600 and sold it off last December 2017 when the price was $19,700.
On the other hand, imagine the grief of those who failed to ride the bubble and sold their coins too late. Much more, imagine those who bought right after the fall of Bitcoin’s price hoping it would still rocket up instantaneously.
Yes, cryptocurrency trading could both be profitable and harsh. But to maximize Bitcoin’s profitability, you must know the rules of when you should sell your digital assets.
True, the trading market is unpredictable. However, there are things you can look for to know the best time you should sell.
5 Important Rules in Selling Bitcoin
Here are the rules you should know in choosing the right time to sell your crypto stocks:
1. Reached Your Goal
One of the rules in trading — have a goal.
To make a profit, you have to sell the coin at a price higher than when you’ve bought it. The highest point of a crypto’s price since you bought it is called a “time high”. This is the most ideal time you should sell.
The problem is, it’s always too late when you’ve realized when the ‘time high’ is. During an uptrend, you never know when it’s going to drop.
So what’s the best course of action? Aim for a target price for when you should sell your crypto coins.
There may be times when you feel like you would have earned more if you waited for a few days before selling. It can be true. But who knows if the price of the coin you’ve invested would rise or drop tomorrow?
Having a goal helps. By this, your profits are assured as long the cryptocurrency's price you invested in rises to your goal price.
Here’s a tip: Set up stop loss alerts so you would know when your digital assets have reached your goal.
2. Talk of the Town
One of the things you should look out for is when everyone is talking about Bitcoin, even your grade school brother.
Famous guys like Joe Kennedy and Bernard Baruch advanced this theory that when a shoeshine boy and a taxi driver talk about stock tips, you should sell out. In the past, this situation was followed by a market crash.
During Bitcoin’s bubble last 2017, the price has inflated so much due to Bitcoin’s popularity. That time, everyone talked about Bitcoin. People from all industries flock to Bitcoin hoping to ride with its uptrend and eventually sell.
But the bubble can only expand as much as it can. Eventually, it will pop. And that’s what happened. Lucky are those who were able to see the signs and sold off their crypto coins.
So here’s what you should do, beware of the people around you and what they talk about. If they are suddenly talking about the cryptocurrencies you own, start thinking about selling them.
3. Unfortunate Events Against Cryptocurrencies
Being a good investor, you should keep tabs on the current news, especially the ones that concern cryptocurrencies and other digital assets.
Fake news, critics, and opinions aren’t the ones you should pay attention to. No matter what the media reports and who says what, it will only have minimal effects as what was already observed.
One of the things you should watch out for are regulations from different countries. Countries, by nature, hate things they can’t control. And cryptocurrencies, by design, are unregulated and decentralized. No one controls them and their value.
Another event you should be aware of is a hacking incident. Many ill-minded people would always seek the easiest way whatever the means is. Blockchain is almost impossible to alter. However, exchanges and wallets that hold the keys to the coins are vulnerable. Every time an incident occurs, especially one where a lot of crypto coins were stolen, you’ll notice an observable downtick on the cryptocurrency market.
There are still a lot of unfateful events you should watch out for. They can have drastic effects on the price of digital assets. Once you spot these events, it’s ensured that there will be a drop. This is a good opportunity for you to sell.
4. Not Caring for Your Digital Assets
If you have no time or you’re not willing to spend time learning the ins and outs of cryptocurrencies, then it’s better for you to not take part in it at all.
If you want to invest in cryptocurrencies, then you should pay attention to it. As you know, investing in cryptocurrencies is hard. If you’re not careful enough, you might lose all your assets overnight.
In addition, everything is changing in the world of crypto. Nothing is certain. The advances, incidents, innovations, changes, and even regulations all have an effect on the price of cryptocurrencies.
If you’re one of those people who don’t have time to spare for cryptocurrencies, consider this article as a sign. Of course, no one is asking you to sell at a losing price. However, as long as you see a chance, sell it and focus on your passion, instead.
5. Negative Effects on You
The last but not the least, take caution if investing in cryptocurrencies is taking a negative toll on you.
Look at the cryptocurrency charts on the market. They look like kids’ toys price going up and down. And no one can predict the trend it will go.
The sad thing is, not everyone can handle it. Some of its effect on people is anxiety and depression. In addition, the negative feelings don’t stop by looking on the market. The anxiety someone can get from selling digital assets would come to haunt every day. These people won’t be able to sleep thinking about what could happen if they held on for just a few days longer.
No investment is worth someone’s health.
If you find yourself in this predicament, consider selling your crypto coins as soon as possible. Nothing good would come out from any investment if you’re exchanging your health for profit.
Now that you know these rules. Take heed and remember them. With cryptocurrency, the only thing that’s sure is uncertainty. If all you want is profit, then the simplest strategy is to always buy low and sell high.