People choose to invest in Bitcoin for various reasons. These reasons include investing to hold onto their coins and sell them later at a higher price and wanting to save them in interest earning-saving accounts and generate some income. However, if you already own bitcoins, you may well ask yourself, “How do I know when to sell my Bitcoin?”
It is vital to know when to buy and when to sell bitcoin because it determines how much profit you can make and also prevents losses. This is because if you buy when the price is high and keep hoping the price will go even higher, it may, in fact, drops and you will stand to lose massively if you liquidate the digital coins.
Ideally, you should buy when the price is low so that you can sell bitcoin at a high price and realize some profit when it rises. However, you must be cautious not to hold on to your BTC so long that they drop to a price lower than that you bought at them unless you have the luxury of time to wait for the price to rise again.
So, how do you tell the best time when to sell your bitcoin?
If you need to spend your funds on other things
Since we all face times when we have no cash available, you may consider liquidating your bitcoins if you need some. You may have identified a better investment or just have a pressing need to settle a debt.
Given that cryptocurrencies are highly liquid assets, you can convert your bitcoins to cash quickly and conveniently using a reliable exchange like Nakitcoins. This can be a convenient and easy option to get your hands on some money, especially if you have already made a profit on your BTC. However, you should not sell your bitcoins for unnecessary expenses.
If you have achieved your goal
As you buy your bitcoins, you may have a goal that when the price gets to a certain level, it will be time to sell them. It is always advisable to have a goal in mind as you invest in cryptos, and if you realize the price of the digital coin has climbed to its highest point since you bought them-which is known as your time high — this is a great moment for you when to sell BTC. So, one of the crucial decisions you need to make as you invest in BTC is to set your target, and once they get to a specific time high, you consider liquidating them.
If you do not find any benefit from holding Bitcoins
The hard truth is that investing in Bitcoin is not for everyone. You may have learned the ropes of the cryptocurrency, set goals, bought your BTC, traded, and tried other BTC deals, but you have yet to get to where you want to be. It seems BTC never gets to the price you anticipated, and what’s worse, you missed selling them when you could have made healthy profits.
When you evaluate your BTC investment and see you have not attained your long-term or even short-term goals, and it has even led to the loss of some money, you can consider this as when it’s best to sell your BTC. You can then try your hand at something else and avoid further losses. Here you may also know about the Bitcoin robots reviews to know about the best bitcoin robots.
If you want to know when to sell BTC, the truth is that there is no one-size-fits-all time when we can say it is the best time for you to cash your digital coins. The best time varies from one person to another. It can be once you have achieved your investment goals, if you need cash for other better investments or urgent personal needs, or if you realize holding BTC is no longer of any benefit to you and may even result in a loss.