How to Know When to Sell Crypto
The price of bitcoin and other cryptocurrencies has been extremely volatile since day one. Bitcoin launched in 2009 and eventually morphed into the massive cryptocurrency market we have today.
And for its entire 13-year existence, it has been the king of volatility. But volatility is what creates amazing opportunities to make life-changing gains.
Buy low, sell high; that’s the name of the game when it comes to making money in cryptocurrency. But every single crypto investor and crypto-trader will tell you that it’s not that simple.
Wondering when to sell crypto to help ensure you lock in some gains before the price falls? It’s a tough question to answer, but we provide some helpful insight below.
How to Earn Crypto Profits
Cryptocurrency is a revolutionary technology. It’s a decentralized, digital currency for the modern age.
It can cross any border and be exchanged peer-to-peer without a government or bank to authorize or facilitate transactions. For example, you can buy Loopering right now, and send it to your friend across the planet, and they’ll have it in a few moments.
And while this ground-shattering technology is slowly transforming society, it’s the speculation and money-making opportunities that most people actually care about.
People invest in crypto for one thing; to turn a profit. The goal is to buy when the price of the crypto is low, ideally near the bottom. Then, wait for the next bull market, when market sentiment is high, investors are buying, and prices are increasing.
At any time the price of crypto is higher than what you paid, you can sell for a profit.
But if you can time the market just right, you can sell at the top, locking in the most profits, just before the market heads back down.
When to Sell Crypto
Wondering how to know when to sell crypto for maximum profit? You need to time the market. But that’s nearly impossible to do.
Many people think they have a target of where the price of a particular cryptocurrency should go. For example, in 2021, everyone believed bitcoin would reach $100K by the end of the year.
But it topped out at $68,000 (the all-time high) in November before crashing back down to the $40K range.
If you bought in around $40K and sold when Bitcoin was at $60K, you would’ve made a great return. The problem is that people become attached to the result they want to see, that they don’t capitalize on the opportunity they have to sell now.
Alternatively, in these scenarios, when your crypto portfolio is up, you can sell a portion of your holdings for profit to return on your original investment. Then, you can let the remainder ride out the current wave to see how high the market will go.
As soon as you see the price coming back down, sell to lock in profits.
Of course, if you want the easiest crypto trading tips, just buy and hold for a few years. Anyone that bought bitcoin a few years ago is sitting on massive gains today.
Anyone who bought bitcoin 10 years ago is very wealthy today (if they still have it).
You Need a Bit of Luck
Selling crypto is an art, a science, and requires quite a bit of luck to actually generate profit. It’s almost impossible to know when to sell crypto.
It’s best to set a target, sell when it reaches that target, and enjoy the reward, even if the price keeps climbing.
Looking for more tips on when to sell crypto profits? Head over to our blog now to keep reading.