Digital trading can make or break a trader, depending largely on when s/he decides to sell the crypto. A lot of traders make selling decisions based on their gut feeling but trading mostly based on intuition might be extremely risky when it comes to crypto. Cryptocurrency, as you know by now, features a highly volatile market. The market fluctuates at an astronomical range that can lead to either dramatic returns or catastrophic losses in even just a few days. So, after you buy crypto with credit card or any other means, you must gather thorough understanding on the right time and the ideal amount to sell it. Put simply, you should follow the selling strategies followed by crypto veterans to ensure informed decisions with crypto trading and selling.
Crypto selling can be influenced by a large number of factors after you buy crypto with credit card. You need to consider your trading goals, the type of crypto you have invested in, potential of the crypto investment, your investment goals, condition of the crypto market, market predictions, and so on. Besides, you will certainly need to take into consideration technical analysis or fundamental analysis or both to derive an educated selling decision.
Tips for selling crypto
Rising value
This is the easiest strategy for selling crypto. Even a beginner trader knows that the best time to sell off any asset is when the value of the assets seems to be on rise.
So, if you find that your chosen crypto is flaunting a mighty double or triple surge in value – compared to the time you had invested in the coin- sell it off. However, some experts will rightly advise you not to sell off the entire holding of that particular coin at one go. The smartest thing here would be to sell a part of it, say 60%, and leave the rest for the latter. You can save the crypto on hold for HODLing, provided the crypto holds a history or promise of incredible returns in long-term HODLing.
But, if it’s a small investment, you can probably sell off the entire share. That way, you can free up the money and invest in some other crypto when the prices take a dip.
Sell frequently if you can give time
Would you be okay with small batches of profit yet on a frequent basis? Do you have enough time at hand to dedicate yourself completely to crypto trading throughout the day?
If your answer is “yes” to both the questions, then, you can try scalping and/or day trading. These are similar trading strategies where you buy crypto with credit card and sell the asset within one single day.
In scalping, you will buy crypto with credit card and sell the asset within 10 minutes to 30 minutes. Scalping traders basically try to capitalize on the minor price movements that frequently happen in the crypto scene. So, the profit would be small each time. But, when you accumulate a series of such little profits, you are likely to get a sizable number.
In day trading too, traders engage in frequent trading but at longer intervals in comparison to scalping. However, when it comes to day trading, the entire trading activity starts and closes within that particular trading day.
Now, both scalping and day trading are time-consuming trades. You will have to keep checking on the price movements constantly to decide on the right selling and buying times. But, in case, you are too busy to keep a constant eye on the market movements, these strategies are not for you.
Crypto shows lack of potential
Not all crypto projects could be sustainable with a long promising future. Over the last decade, several coins have vanished in oblivion despite having a great start in the beginning. For example, crypto experts are currently stressing on the fact that meme coins might have a brief future. These coins are mostly built on hype – they don’t offer a solid use-case- and hence, they might not last long.
Bottom line is- if you invest in these kinds of coins, you would have to sell them off fast to avoid big-time losses later. There are certain telltale signs that say that your chosen crypto project might not last long and the faster you sell the coin, the better-
- Management team seems to be dubious
- No further announcements from the crypto team
- No upgrades or developments
- Reducing community size
If one of your crypto holdings shows similar signs, you must sell off the coin immediately. You might not be able to make grand profits but sometimes, exiting at the right time is more important than waiting for big profits.
You want to invest in new coins
The crypto market is welcoming new coins every now and then. On the other hand, some old coins too are upgrading at a cutting-edge level to improve their overall stature in the industry in the coming months. For example, with Ethereum transcending to PoS blockchain, some experts have predicted that ETH might surpass BTC in near future. If so, some BTC users would probably prefer to sell off some of their BTC holdings to invest or invest more in Ethereum.
Bottom line is, sometimes, you will have to sell off your crypto assets on hold if you think some other coin would offer you better opportunities in future. Taking cue from the example mentioned above, you might not have to sell off the entire holding- rather you can keep some and sell some.
Better rates at other exchanges
Did you know that the selling price might vary from one exchange to another? The difference won’t be much but it’s not uncommon to find another exchange that is offering at least $400-$500 more than your chosen exchange.
So, you should also keep watch on other exchanges once you have checked the price at your existing exchange. If you are in the mood to sell and if you get a higher price in another exchange, you can always make the trading over there. Just make sure, the other exchange is a reputed and safe platform.