If you are a trader, you need to know when to sell your crypto. In the world of cryptocurrencies, nothing is guaranteed and you cannot invest in an unsupported altcoin for a long time. The same is true for Bitcoin, which fluctuates a lot. In this article, I will highlight the pointers that show that it is time to sell your cryptocurrencies and get out of the market.
Regret Theory
This theory will help you decide which move is best for your investment. For example, supposing that you bought a Bitcoin coin for $7,000 and after a while, it reached $20,000. You are faced with two decisions in this situation:
- Sell your bitcoins and use your profits / you may miss your chance to make more profit
- Continue to invest in the hope of more profit/prices may fall and you will lose
Which of the above two options will make you regret less?
In my opinion, if you are not a risk-taker, option 1 is right for you. The cryptocurrency market is not suitable for the weak, who are afraid of losing their capital. This market is full of ups and downs and its future cannot be predicted.
Your Goal
If the time has come for your cryptocurrency to exceed the price you set and it has reached its highest possible level, this is called your price peak. If the market reaches this peak, think about selling your own cryptocurrencies.
Setting targets
There are many tools in exchanges with which to determine your purpose. One of these tools is stop-loss alerts. Stop-loss helps prevent potential losses and protects your profits. You can also use the limit sell order to limit your trades when the price reaches a certain range.
Market Understanding
You may start investing without understanding the market and maybe make profit. But when you have no understanding of the market and the cryptocurrency, it is dangerous. It is better to leave the market with a minimum (profit/loss) and enter the market with more understanding.
A sharp decline in trading volume
If you have a cryptocurrency and you see a decrease in trading volume over a period of time, consider the possibility of a price decrease. Of course, this is not the case in all cases, but if you are not a risk-taker, be satisfied with the profit you have made and leave the market.
Unaware Of The Situation
If you invest in Bitcoin and you are unaware of its news, you may lose the market. Nothing is impossible in the world of digital currencies; hacks, bans, etc may happen and one day you will wake up to see that the value of your assets is 0.
So be sure to know the news about cryptocurrencies when investing in them.
Conclusion
You have to pay attention to the market and the conditions of the coin you’re holding. Market fluctuations, trading levels, the latest news, etc can all affect prices. No one can tell you when to buy and sell your cryptocurrency. You can only succeed by setting your own goals while considering the market conditions. So when to sell your cryptocurrencies is up to you.