Should I sell my Bitcoin? | CoinCasso Exchange
Should I sell my bitcoin?

Bitcoin – and cryptocurrency, in general – has been on a rollercoaster ride the last few months. The crypto ride got bumpy when Elon Musk took to Twitter and has become seriously wild when China’s decision to ban crypto-related services from mainstream financial companies hit the News. While all cryptocurrencies have taken a beating, it has been particularly rough for Bitcoin, which plummeted an alarming 40% from record highs of over $60,000 to close to $30,000 in just 3 months.

If anything, these extreme highs and lows highlight the volatility of crypto! That said, there is no doubt that the overall long-term trend for crypto – especially Bitcoin – is positive. As a form of payment, cryptocurrencies are well established, and even the most cautious financial gurus have accepted that crypto is here to stay!

So, that brings us to the question everyone in the crypto scene is asking – Should I Buy Bitcoin, Sell or Hold my Bitcoin?

Bitcoin Coins On A Wooden Desk At Home

Few tips to help you decide what you should do with your Bitcoin(s)

Well, this decision will, ultimately, come down to the type of investor you are. A few years ago, Bitcoin was an unknown, uncertain player, and putting money on it was truly a gamble. Now, as a 12-year-old veteran of the crypto world, it is the most stable (yes, you heard that right – stable) of the entire lot of cryptocurrencies, which makes it GOOD for investment.

Investing in Bitcoin is no longer about parking your loose change in an unknown wallet; now, it is a substantial investment and longevity (do read our blog on the Future of Cryptocurrency to gain some insight into what’s in store for Bitcoin and others) is a good thing to have.

When you should sell Bitcoin?

To help you decide if and when you should sell your Bitcoins, we recommend a few different methods.

Maximizing Gains, Minimizing Regrets

For a run-of-the-mill cautious investor, a good exercise to do is to weigh what they would regret more – wiping out current value on a potential crash or losing the opportunity of making more on a potential boom.

Think of two extreme scenarios of both types of losses and think of what would be the worst outcome for you. For many, the choice becomes clear by answering this question honestly.

 Ride The Market Sentiment With The Fear And Greed Index

Another way to decide whether you should sell your Bitcoin or hold on to it is by looking at a metric that tracks when Bitcoin investors are greedy and when they’re feeling fearful.

The Fear and Greed Index tracks six metrics – Volatility, market momentum, social media, surveys, Bitcoin dominance, and online search trends to score Bitcoin investor fears and market greed on a scale of 0-100. You can use these swings (whether the market is fearful or greedy) in sentiment to decide whether you should sell or hold your Bitcoin.

We have discussed the Index in more detail here. Do check it out to understand the various metrics in more detail.

Buy Crypto Coincasso

Buy And Hold For Long Term Crypto Investors

If you are in the crypto game for the sake of long-term investment, then get used to wild swings (you might recall the big crypto crash of 2017). Cryptocurrencies are known for their volatility which is why they can also be a big win for long-term investors.  

If you haven’t let crypto investments dominate your portfolio, then holding on for a later-day payout might just be the right plan. If you are worried about losing money, then you might be over-invested in Bitcoin and its brethren. One way to bring down your risks to match your comfort level is to diversify a bit more and reach a level you are OK losing.

Technical Tools And Pattern For Traders

Professional traders, investing large sums, naturally, don’t leave critical decisions to their gut feel or market sentiment. They have a whole battery of digital tools and algorithms to aid their decision-making process.

Among the 100s of tools, some of the most popular are stochasticsRelative strength index (RSI), Moving Average Convergence Divergence (MACD), and momentum. These indicators are used individually or in combination to decide an entry or exit.

Traders also read market patterns, price history, and other trends to map the journey of their crypto investments. Using these analyses allows for a more confident and informed answer to the question – Should I Sell my Bitcoin?

Man With Bitcoin And Mobile Phone

Still not sure what to do when Bitcoin starts plummeting?

Well, you are not alone. Not everyone can understand charts and trends, and for many, the decision has serious personal ramifications, making it even harder to go with the gut.

Here is what we recommend as the first steps in this scenario:

Don’t panic!

Whatever you do, don’t rush to dump your Bitcoin. Take a moment (or a day) to assess your situation. The first thing you need to understand and evaluate is why you invested in Bitcoin and what type of loss is unacceptable for you? Are you in for a quick buck or the long haul?

Understanding your motives and goals will help you reach the right decision.

Get more information

Try to assess what is driving the fall and whether the impact is serious and long-term or a passing fad. For example, Elon Musk tweeting about crypto is more about sentiment as opposed to China banning crypto services.

Analyze the information

While market/public sentiment has always been a big part of Bitcoin’s boom and bust cycles, try to understand how current policies and laws will affect the cryptocurrency’s uptake in the long run. It is still an unstable and unrecognized currency, and it could take just a few countries to legislate a law curtailing it for the crypto dream to come crashing down. So, understanding how the political winds are blowing should factor into your decision.

Finally, invest what you can afford to lose

The golden rule of investment – invest what you can lose – should be your yardstick when it comes to Bitcoin trading. If your investment gives you sleepless nights, you might want to consider trimming down the Bitcoin in your portfolio.

Bitcoin Inside Trolley Cart

Our view

At CoinCasso, we believe deeply in the future of cryptocurrencies. We are committed, heart, soul, and mind, to making crypto mainstream.

Disclosure out of the way, our recommendations are based on some undeniable facts about Bitcoin.

In 12 short years, Bitcoin has turned into the staid, old grandpa of cryptocurrencies. In this volatile space, it has attained blue-chip status and is the safest investment in this field.

Not only has it been around the longest, but it is also the most popular, with over 1 million transactions every day. Let’s face it, Bitcoin is almost mainstream, and we don’t see a future in which it will not become even more popular.

 So, in light of the recent crash, our advice would be to grab some more of them! You may never see Bitcoin at this price again.

 For all the people asking – Should I sell my Bitcoin?  We say, No, hold on and for serious traders or people with more appetite for risk, we say – Buy some more!

If you are new to cryptocurrency or just want to try a different exchange, then take a look at our CoinCasso cryptocurrency exchange. We offer super attractive discounts on transactions (up to 50%) and have a host of programs for our active users.

Buy Crypto Coincasso

FAQs

Should I sell or keep my Bitcoin?

We suggest you conduct a mix of personal and financial analysis to decide some key points:

  1. How much loss are you willing to bear?
  2. Do you prefer to lose profit from a future boom rather than risk losing money now?
  3. How much of your portfolio is made up of Bitcoin?
  4. You must also track and understand market sentiment and trend analysis to take a non-sentimental approach to your investment decisions.
  5. Also, keep track of newsfeeds to understand external factors that might impact your Bitcoin value.

When should I sell my Bitcoin?

Selling your Bitcoin is a very subjective decision, and there is no one simple answer. However, you could consider selling your investment,

  • if you are not a long-term investor, as cryptocurrency, in general, is highly volatile.
  • If Bitcoin makes up a substantial part of your portfolio
  • If you need the money urgently and are afraid of losing too much value

Otherwise, our advice would be to hold on and wait, as the value is sure to pick up again. In fact, a low price/price crash is precisely the time to buy more!

Is Bitcoin losing value?

In 2011, a Bitcoin was equal to one US dollar. It is now valued at around $38,000 and touched $60,000 at its peak. So, if you look at the journey in its entirety, despite occasional crashes, the BTC value has always been on an upward trajectory. So while in the near term, we can say Bitcoin is losing value, overall it has been – and continues to be – a significant gainer.

Can Bitcoin be converted to cash?

Yes, BTC can easily be converted to cash or money in your bank:

  •  You can either sell (convert) your Bitcoin via a third-party exchange broker (like us at CoinCasso). These exchanges usually use the daily rate for conversion and pay the amount directly into your bank account.
  • You can also use Bitcoin ATMs and debit cards, which allow you to withdraw physical cash (you can, of course, also buy Bitcoin here). These work a lot like traditional kiosk ATMs, except that instead of being connected to a bank account, they are connected to a Bitcoin exchange. Just like a regular ATM, you log in with your account, enter the amount of cash you want to withdraw, and send Bitcoin or other cryptocurrencies to the wallet address.

What you should keep in mind while exchanging your cryptocurrency?

  1.  The amount you get on an exchange is calculated on the exchange rate of that day. The exchange rate is much like a bank exchange rate for currencies, except this is not regulated by a bank or a country.
  2. Third-party cryptocurrency exchanges usually charge a transaction fee
  3. Keep in mind that whatever comes into your bank or is exchanged via an ATM/debit card will be taxed.
  4. The whole transaction takes a few days.

Read also:

READY TO BUY CRYPTO?
Create an account and start trading right now.

GET STARTED!

Copyright © Coincasso OU 2018-2021

Register now!