Roo's All-In Giveaway, $300,000 in Prizes
1.2 k views

When is the Right Time to Sell Your Bitcoin or Altcoins?

Most experienced traders will agree that there are times when it makes more sense to sell your Bitcoin (BTC) or altcoins rather than take the brunt of losses head-on. Importantly, there is no specific point of buying or selling cryptocurrencies that is “right.” Every investor’s situation, overall goal, and investment strategy varies greatly. For these reasons, it can be notoriously difficult to determine when it’s best to sell your digital assets. 

Greed Gets You Nowhere

The main thing to understand is not to be greedy in your approach. FOMO (fear of missing out) is a real concern for new investors. Many of these investors have already secured healthy profits from their investments to date. The prospect of even more profits can make it difficult to exit the market for these participants. However, it’s exactly this attitude that can erase any ROI you secured to date.

Is HODLing Smart?

It’s crucial to mention at this point that there are times when it makes sense to hodl (hold on for dear life). This strategy is best for non-active traders who have faith in the long-term direction of their investment projects. In the Bitcoin sphere, this is a very popular strategy. However, altcoin projects, such as Ethereum, have also gained respect in the market. 

However, it’s vital to understand that Bitcoin serves a different purpose than most cryptos. Also, it holds a solidified position in the market. Of course, it’s not guaranteed, but it’s safer to assume that Bitcoin will still be used in the next ten years. The same cannot be said for most altcoin projects in the space. For these reasons, you need to be pickier about which altcoins you decide to hodl. 

Sales Strategies That Work Across All Cryptocurrencies

Investors use some strategies to determine when it’s best to sell their holdings, regardless of whether they are Bitcoin or altcoins. Notably, when you sell your coins, it’s not a permanent maneuver. In most instances, this will represent the closing of your investment position. Most investors will then reconsider the market’s direction and reinvest when they feel it’s profitable again. 

Set a Sales Target

One of the best ways to lock your profits is to set a target price to sell at. In this strategy, you set a sales target when you buy the coin. For example, let’s say you purchased ATOM at $4.50 with a target price of $5.50. Once the target is reached, you sell your coins and secure your profit. Using the limit sell option is one of the best ways to ensure you sell at your sales target. Most investors will then take a day to rethink their approach and reevaluate the market before taking up new positions.

Gradual Profits

Another popular strategy used by savvy crypto investors is to lock in profits gradually. In this scenario, users cash out some of their profits in small increments. For example, an investor could sell 5% or 10% of their total tokens. They could then leave the remaining balance in the market. The remaining coins will help the investor to judge their decision. Additionally, it reduces their risk exposure and leaves some profits to be made if the coin’s value increases.

After Market Value Rise

Another great time to sell your digital assets is following large value gains. Yale researchers studied the price movements of major cryptocurrencies for weeks and discovered some interesting facts. The researchers concluded that the best risk-free time for trading digital coins is the week following a sudden increase in prices of more than 20%.

Technical Indicators

One of the ways professionals determine when to sell their holdings is via technical indicators. Traders use various tools to help predict future market movements. While no one can say what the market will do next with 100% accuracy, technical indicators allow professional traders to make educated guesses more accurately. 

For example, the Relative Strength Index (RSI) is a momentum oscillator that measures price movements’ speed and change. This tool can help an investor determine if an asset is over or under bought. Overbought assets have more supply than demand. When an asset is overbought, there is a great chance that it will see a price correction. Keenly, this is just an indicator, and there are many times when the asset continues to gain value. It would help if you always utilized multiple technical indicators to improve your results.

Regulatory Concerns

There are outside factors that affect the price of cryptocurrencies negatively, as well. One such concern is regulatory concerns. Changes in regulations can signal a market drop is imminent. A perfect example happened in 2017 when China closed all local exchanges and banned ICOs. The news sent shockwaves through the market and dropped crypto values by almost 20% for weeks.  

While it may be difficult to know what your local regulators have planned fully, it’s easier to feel the atmosphere. If you live in a region where you notice the media and officials’ view on cryptocurrencies is negative, you need to be prepared for this scenario to play out. In many instances, these regulatory issues are temporary as regulators scramble to understand the new technology and its effects on their control structure, the market, and citizens.

Strengthen Your Position

One of the best reasons to sell your crypto is to get more crypto. Savvy investors sell their assets before or at the start of major market corrections and then buy back once they determine the dip is at its lowest point. Notably, buying on the dip can be difficult. You will need a firm understanding of the market conditions to prevent buying while the market crashes. Regardless, if you sold at the right time, you are still in for some free crypto when you reenter the market.

When to Sell Your Altcoins

Altcoins carry an additional risk of inflation versus Bitcoin. There are thousands of these projects in the market. In addition, many of these coins are fueled purely by speculative investors. This situation leaves many altcoins susceptible to run-off sales. For these reasons, you must be vigilant in your altcoin investment assessments.

Rank your coins based on their risk. Smaller projects that are not open source and projects with no functioning platform should be ranked highest in risk exposure. When the market drops, you need to pay extra attention to these coins and tokens. There are plenty of horror stories of investors losing their entire holdings due to the complete collapse of a platform. 

When to Sell Your Bitcoin

Deciding when to sell your Bitcoin is a bit trickier. Unlike most altcoins, Bitcoin exhibits many long-term investment characteristics. The scarcity and continued adoption of this crypto make it unique in the market. Most investors will put aside a specific amount of their Bitcoin holdings for trading and hodl the rest. This approach gives you a little more balance and ensures you remain balanced.

When is The Right Time to Sell Your Bitcoin and Altcoins

Bitcoin live price
price change

Now that you better understand when it’s best to sell your Bitcoin and altcoins, you are ready to put your strategy to the test. Remember, you will need to monitor the market and outside factors that play a role in crypto pricing. Nevertheless, you are sure to see higher ROIs once you master how to avoid market downturns and how to strengthen your position.

Stay up to date with our latest articles

More posts

Why SolidProof Stands Out in the Blockchain Security Landscape

SolidProof - a registered security company from Germany - has announced the imminent release of an updated version of its SolidProof Automated Audit Tool (SAAT). This unique blockchain industry product supports decentralized finance (DeFi) growth, enabling projects to minimize security threats. An upgraded SolidProof App is also ready to roll out with new and exciting features, cementing SolidProof’s place in the top tier of blockchain security providers. Increased Challenges for DeFi Security Decentralized finance has evolved on top of blockchain…

Top 5 Crypto Gaming Tokens to Buy for the Next Bull Run

Crypto gaming is one of the fastest-developing sectors of the blockchain industry. In 2023, it is estimated at $7.89 billion and is forecasted to reach over $300 billion by 2030. Some see it as the next ship to onboard for lucrative long-term investments. And after a closer look at it, we can easily understand why. The strength of the crypto gaming market lies at the crossroads of several technological advances, including blockchain, cryptocurrencies, and the Metaverse. Including new economic models,…

Top 3 Crypto Casinos in 2023

Playing at crypto casinos is a widespread practice in 2023. These online platforms feature all the classic casino games, like poker, Roulette, and Blackjack, besides modern interactive slots and sports betting. Players worldwide can make crypto deposits in Bitcoin, Ethereum, and other popular cryptocurrencies for the chance to win substantial jackpots, bonuses, and rewards. If you are wondering how to choose a crypto casino, you have come to the right place. We selected three of the top crypto casinos this…

Using Open-Source Protocols for Developing Scalable Solutions on Blockchain

Blockchain technology's safe, transparent, and decentralized transaction platform might transform several sectors. However, building scalable blockchain solutions can be a challenging task.  This short guide will explore how to leverage open-source protocols to develop scalable blockchain solutions. The article aims to make it easier for developers to plan the realization of robust and secure blockchain applications.  Understanding Open-Source Protocols Open-source protocols, such as Ethereum and Hyperledger Fabric, come from organizations and are available for anyone to code for free. Unlike…

How to Leverage Arbitrage Opportunities in Crypto Markets

Cryptocurrency arbitrage has become an increasingly popular investment strategy as the crypto market grows and evolves. Arbitrage involves taking advantage of pricing discrepancies between markets or exchanges to profit.  Investors can leverage profit opportunities by understanding cryptocurrency arbitrage while managing associated risks. In this guide, we'll explore cryptocurrency arbitrage and how it works. A Bitcoin-related example will help us illustrate the concepts of this strategy. What is Arbitrage and How Does it Work in Crypto Markets Crypto arbitrage trading is…

The Different Types of Copy Trading in Crypto

Are you interested in trading cryptocurrencies but feel intimidated by the complexity of the process? Copy trading is a great way to get into crypto without needing to be an experienced trader. With copy trading, investors can benefit from the experience and knowledge of more experienced traders, allowing even beginners to succeed. How does copy trading work, and which tips do you need to know to succeed? In this article, we'll explore all aspects of copy trading in crypto. What…

How to Spot an Unsafe Crypto Exchange

Cryptocurrency exchanges have become increasingly popular as they provide a platform for people to buy and sell digital assets. Unfortunately, not all crypto exchanges are safe or reliable.  With the rise of cybercrime and fraud, you must learn to spot an unsafe crypto exchange before investing your money. This guide will help beginners identify and avoid potential risks when selecting a cryptocurrency exchange.  The Role of Crypto Exchanges on the Digital Assets Market Cryptocurrency exchanges play a crucial role in…

A Guide to the Impact of US Fed’s Interest Rates on Crypto

The US Federal Reserve's interest rate is one of the world's most influential economic indicators. These rates profoundly affect global markets and investments.  But what impact does this have on cryptocurrencies? Today, we’ll explore how Fed interest rate changes affect crypto prices and why traders need to pay attention to them. We will also discuss how quickly these rates are increasing and what this means for cryptocurrency investors.  Observing the connection between US Fed rates and crypto assets allows you…

Unveiling the ERC-4337 Account Abstraction Standard – What You Should Know

The Ethereum blockchain is always changing and adding new features to make it easier to use. One of the latest developments is the introduction of ERC-4337. This account abstraction standard promises to revolutionize how users interact with Ethereum. This guide will tell you about ERC-4337. We'll explain what it is, how it works, and the good and bad things about it. We'll also talk about why you should use this new standard for smart contracts. By the end of this…

What Is Grid Trading in Crypto?

Crypto grid trading has become a popular strategy because of its ability to help traders capitalize on market volatility. Grid trading means you can produce consistent profits by taking advantage of price differences in different markets or time frames. By establishing buy and sell orders at predetermined intervals, you can take advantage of these fluctuations in an automated way. This guide will explore the different aspects of grid trading and provide an overview of its benefits, challenges, and more. Through…