Written by: James Page
Is there a right time to sell your Bitcoin? If Laszlo Hanyecz had guessed the answer to this question 11 years ago, he would’ve been a multi-millionaire today. Instead, he paid 10k Bitcoin for two pizzas and lived to regret his decision. Now that Bitcoin’s price is reaching astonishing heights, the bitter joke about the most expensive dinner makes the question even harder.
It also illustrates a deeper point: Bitcoin has proven to be digital gold over the past years. It’s shown value as an innovative method for long-term investments rather than an e-commerce payment service. However, the reason why people decide to quit the Bitcoin game can vary to a great degree. Regardless of various traders’ previous crypto-knowledge and expertise, everyone will individually bear the consequences of their choice in the face of Bitcoin’s development in the years to come.
Therefore, we won’t discuss whether selling your Bitcoin is a good idea any further. Instead, we’ll focus on the signs that indicate it’s time for you to sell your Bitcoin.
How to Know It’s Time to Sell Your Bitcoin
You’ve Reached the Target
Both professional investors and casual traders entered the crypto world for a clear purpose: to make a profit. At this point, Bitcoin price has grown to the highest level since you invested in the first place and the target you set has been achieved. The majority of Bitcoin exchanges today provide a Stop Loss option, which will alert you once the initial investment has reached its goal. However, crypto-savvy experts have valuable advice for you: never sell all the Bitcoin you have. More specifically, if there is a sum that exceeds your expected target, let it ride. You’ll be less sorry if Bitcoin’s price reaches $400,000 in 2030, as some optimists speculate.
You Find the Investment Field Confusing
Maybe you’re one of the few lucky people who bought Bitcoin in its early stages without any particular purpose. However, as the Bitcoin ecosystem continues to grow, you find it harder to follow all the price charts, market fluctuations, and fancy platform interfaces. You don’t know what margin and futures trading mean and neither are you willing to learn. The volatile market makes you feel uncomfortable rather than excited. If this is you, it’s probably time to sell your Bitcoin and say thank you to those who persuaded you to make a small investment into “some unknown asset designated for the future.”
We recommend that you ask for professional assistance to make a profitable deal without facing any significant loss due to hidden withdrawal fees or even worse, lose the entire investment as a result of potential scams.
You Want to Invest in Something New
You’ve been there, mastered the blockchain industry, and you simply feel there is no future in Bitcoin. It’s a totally legit reason if you want to sell your Bitcoin and invest the capital in something you consider more promising. You can cash out a handsome amount taking into account the current Bitcoin price. Nobody predicted Bitcoin’s rapid expansion to this extent, so nobody could know what the next “big thing” is. However, conduct detailed research before making any decisions and apply the skills you gained as a trader on such a volatile market: patience, awareness, and a sharp mind.
There is also a significant number of brave traders who consider that Bitcoin’s time has already reached its peak, yet firmly believe that blockchain is the future of finance. They trade their Bitcoin in exchange for another altcoin and wait for a new breakthrough. Sounds risky? It couldn’t be more than Bitcoin was ten years ago.
A Few Words Before You Go...
Did you find this article helpful? We still reckon you should think twice before selling your Bitcoin. If you believe there is a strong cause behind your decision, read our separate article on How to Turn Bitcoin into Cash.
The views and opinions expressed in this article are those of the contributor, and do not represent the views of IRIS Media Works and Advisorpedia. Readers should not consider statements made by the contributor as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please click here.