Like all forms of investment, crypto also comes with a risk. According to the Bank of International Settlements (BIS), about three-quarters of crypto investors are expected to lose their money instead of earning profits from it. Considering this, you need to have a proper plan in place when you’re purchasing crypto stocks.
Before this, you must get acquainted with the best timing to buy, hold, and sell cryptos. Once you crack this code, you can make get good profits on your invested cryptocurrency. In this blog, you will learn the best time to sell your cryptos to reduce the risk of monetary loss and increase the chances of earning high profits.
When to Sell Crypto Profits?
There is no strict guideline when selling or trading cryptocurrency for profits. You can sell your cryptos if the market has been stable for a while and your investment’s value has doubled since the purchase. The most important rule of thumb is to avoid panic selling when the price goes down. So, hang on to your digital assets and wait for the market to regain its high value.
The Right Time to Buy and Sell
You can earn high profits as an investor by knowing the right time to buy and sell your virtual monetary assets. The best time of the day to buy is early morning because the price is lower and tends to rise up as the day goes on.
You can also purchase a crypto coin at the end of the month, as the coin value increases in the first ten days of the month.
In comparison, the right time to sell cryptos is between midnight to 1 PM (UTC zone). This way, you can open intraday transactions and reap the benefits of price fluctuation on the same trading day. So, when a crypto coin value is soaring in the market, sell a portion of your portfolio and earn a good return.
Things to Consider Before Selling Your Assets
After learning when to sell cryptocurrency, you need to consider the following tips to maximize your profits:
- Do not sell all cryptos at once, especially when the coin is at a high value. It is best to sell a specific portion of your holdings. Moreover, evaluate the market before taking any initiative. For instance, if the trending news is “why are all cryptos down today”, it’s probably not the best time to sell your cryptocurrency. Doing your homework and taking smart decisions will rebalance your portfolio, allowing you to reinvest cryptos if the price rises again.
- Hold cryptos for more than 365 days because you will be charged with taxes termed long-term gains. The long-term gains are considered ordinary income. Therefore, its taxes are less than short-term gains. So, if your assets are about to reach the one-year mark, wait for the annual period to complete before selling.
- Choose a reliable and well-known platform to sell cryptos quickly and avoid transaction delays. If your transaction is in the backlog for too long, you may have to pay the extra transaction fee. That is why you should learn how to sell crypto from Trust Wallet, Coinbase, Ledger, and others, before selling.
When Should You Never Sell Cryptos?
You should never sell when the market value is down. As the crypto market is volatile and fluctuates with time, putting your holdings up on the buying block is not advisable. Even though the price is not as high as you wish to be at the moment, it will rise in the future. Once it does, that is the right time to sell and earn on crypto.
For example, despite getting a good start this year, Bitcoin trading and investing are still very risky. So, if you’re wondering when to sell Bitcoin, the answer is 2024. This is when the bull year is predicted to start. So, remain cautious this year, and you may end up earning good profits the year after.
How to Make Crypto Profits?
After learning the best timing for selling and buying cryptos, let’s focus on the strategy for cryptocurrency selling:
Sell a Small Portion
Instead of selling all your cryptocurrency holding at once, separate one portion (5% to 10%) and sell it. Doing this will help you understand and optimize crypto profit gains. If the obtained profit is 30% more than the initial price (the buying price), then sell small batches of the coin every week. Keep testing the environment to receive the rates worthy of your crypto assets.
Convert and Store Profits in Stablecoins
Stablecoin is a type of cryptocurrency whose market value is tied to another commodity, such as fiat currency and gold. Compared to other crypto coins, stablecoins are less volatile. So, keep the profits in a fiat-reserved stablecoin and gain interest by supplying liquidity to DeFi projects.
Sell and Buy at the Right Time
You can use stablecoins to buy any coin you want without going through a fiat transfer waiting period. This means you can easily sell and buy coins on their current market value. Regularly check the prices of each coin to sell the high-priced assets at the right moment.
Stake Coins and Earn Interest
You don’t have to worry about how to buy, sell, and hold cryptocurrencies to maximize crypto profits. Instead, you can stake your digital assets and earn passive income from them. Crypto staking is crypto profit taking strategy, similar to depositing cash in a saving account. As long as you are lending out the deposits, your account balance will increase via interest.
Final Thoughts
There is no exact formula to tell when to sell crypto exactly. However, if you take into account all the above-mentioned details, you are more likely to get income from selling cryptocurrency. Watch the market, be aware of the best time to sell, don’t panic and set yourself a plan for when you will definitely sell crypto assets. And even if crypto keeps going up after the sale, you won’t get upset because you saled when it hit a goal.
Cropty.com does not provide financial advice, any information available on this website is ‘general’ in nature and for informational purposes only. Do not use it as a guidance for investments.
FAQs
When should I sell my crypto?
The best way to take profits in crypto through selling is when a coin has doubled or tripled in value since you bought it. Moreover, if you don’t see any good predictions for a coin’s future, it is better to sell it to find better investment opportunities.
What should I do with my crypto profits?
You should divide your crypto earnings and then use techniques of mining and trading cryptocurrency for profit earning. You can also use scalping crypto (short-term trades) to multiply your crypto-based income.
How do I know when to buy and sell crypto?
You should regularly check the cryptocurrency forecast to learn the value of the coins you are investing in. When the price is very low, go ahead and buy as many coins as you want. Whenever the coin price becomes high, you should sell a portion of your assets to obtain profits.
Should I reinvest my crypto profits?
You should reinvest your crypto profits to keep earning more cryptos. You can invest them in safer asset classes, such as stocks and stablecoins, to increase your income without the risk of losing money.
Should I sell crypto when it’s high?
The only time you should sell assets is when the price is high. This is how to take profits in crypto and earn more than what you spent during the buying phase.
