It was more than ten years since the digital currency revolution started with the inception of Bitcoin. The first virtual currency is still going strong, and it shows no signs of slowing down. Back in the day, while people did get involved with BTC, it held no actual value to most of us. A person infamously bough pizza with what is today worth $82 million. This is how little BTC was valued back in the day. Over the past ten years, things have changed.
At the moment, Bitcoin is trending upwards after reaching it’s highest highs only a few weeks ago when it peaked at over $40.000. Because of this, many people flocked towards it and started buying BTC. This happening wasn’t unexpected, but you shouldn’t buy when an asset is at its peak. With digital currencies, you never know if it is going up or down. But while knowing when to buy is being smart, it’s even better if you recognize the right time to sell.
The BTC market is highly volatile, so you need to know when it is the right time to make your moves. In this article, we are going to talk about the five signs it’s time to cash out your Bitcoins.
1. The Goal Achieved
The basic principles of trading have been there for centuries and haven’t changed since the old days. Why? Well, they’re too simple and are entirely on the spot. The goal is to sell the asset for more money than you initially bought it for. It’s simple as that! Once you have bought BTC, it’s time to follow the market.
The moment you’re looking for is called your time high. If an asset reaches an all-time high since the time you bought it, it signals that the time might be right to sell it. The peak never lasts for too long, so this needs to be a serious consideration. The goal is to sell an asset when it has its highest value, so there’s no room to overthink as you could potentially lose money if it starts trending downwards.
When it comes to virtual currencies, being quick is essential, considering their volatility. If you still haven’t reached your goal, continue following BTC on kriptomat.io to see when the peak is coming.
2. Don’t Understanding Basics of Bitcoin
When the digital currency hype started, many people invested their time and money in it without fully grasping the essence of BTC. If you are one of those people who were persuaded to join the hype train by your friends, family members, or the good people of the internet, you might want to reconsider your decision. If you can’t grasp what BTC is, why it is volatile, or what is a blockchain, you could find better assets to invest in.
The Crypto market can be complicated for some to handle, and this shouldn’t put a strain on you. Just walk away. Not understanding the subject on hand will make you prone to mistakes which could cause money loss. It is better to sell if you’re in a situation like this.
3. All Your Money Is in Bitcoin
Holding all of your money in one place is never a smart move. Having it all tied to Bitcoin can make you rich in the long run, but it can also make you lose a lot. Investing in digital currencies carries a lot of risks. They’re volatile, and this isn’t changing any time soon. No one can accurately predict this market, and while it can bring you high income, it could also burst into a bubble and collapse. If you save in Bitcoin, one day, you could have hundreds of thousands f dollars, while tomorrow, your assets could be worth half of that – in a heartbeat.
It doesn’t matter if you’re investing short term or long term; the risk that comes with BTC trading never changes. One lousy investment could leave you without everything. So, it’s better to diversify your portfolio and keep close to BTC only the amount you’re pre[red to part ways with.
4. Trusting The Divine, And Not The Market
You wouldn’t believe it, but there are numerous traders who are looking up to the sky looking for a sign to buy, sell, or trade digital currencies. This, of course, isn’t normal, as no help is coming from above. In fact, no one can accurately predict when is the right time to buy or sell Bitcoin. You want to know when it is the right time to sell. But to do this, you mustn’t follow trends. If you do, and you sell when everyone is selling, the price is probably going down rapidly, and you could eventually lose money if you mist the opportune moment.
To be a profitable crypto trader, you need to trust your skills, have them in the first place, hone them, learn and collect knowledge, and eventually add some luck to that mix. Even then, there’s no guarantee you’ll know when the peak is coming and when you’re right to sell. If you are in a situation that you know little to nothing about how to make your investment work out, be sure to sell as soon as possible and avoid any unnecessary hustle.
5. You Stopped Caring
If you started investing in BTC and followed it closely, but after a while lost your interest, there’s no point holding onto this asset. If you find yourself no longer even know the price of this digital currency, it’s time to move on from it. It’s the attention you give to BTC that will reap your benefits afterward. The Crypto market is highly volatile, and it doesn’t allow you to lose focus, or you’ll lose everything. If you are not into it, you could wake up one day and finding out that digital currencies are no longer a thing. Before this happens, be sure to sell; you don’t even care anymore. Trust us; this could be a better investment.