As soon as the price of cryptocurrency once again peaks, almost every person invested in digital assets wonders whether to sell bitcoin right now. And this is no exaggeration. Anyone who has bought cryptocurrencies before is familiar with similar thoughts:
‘What if the price collapses soon?’
‘What if I don't sell, and wait for further growth?’;
‘What price will bitcoin eventually reach?’.
Therefore, the question of when to fix profit is not simple for both beginners and experienced participants in the crypto market.
Let's consider the terminology in more detail. Profit taking is what professional and not so professional market participants call a transaction to sell an asset that increased in value. For example, coins were bought at the rate of 10 thousand dollars. Their further selling at the rate of 50 thousand dollars is called profit taking.
In this article, we will examine whether to sell bitcoins now, whether to wait for new price values, and how it is better to fix profits.
Market participants have already become convinced that cryptocurrencies are a very volatile asset. Volatility refers to price fluctuations. The more the value of an asset changes during, for example, a month, the more volatile it is.
Therefore, after buying digital coins, doubts may arise. Anyone can open a bitcoin chart and realize that its price has fallen hard more than once. However, the same chart shows that later on, the value not only returns to the previous peak value, but also surpasses it.
Understanding these facts is very important. After all, you will be much less worried about the next price collapse if you know that there is a chance to sell bitcoins for much more.
Experts agree that the first cryptocurrency will always rise at a distance, because it:
For example, the head of the largest American bank JPMorgan, Jamie Dimon, believes that in the next 5 years the price of bitcoin could grow 10 times. There are more optimistic predictions - some experts expect that the price of bitcoin will reach $200,000 per coin in the next few months - in November and December 2021, or until March 2022.
However, no one knows exactly when and how much the cryptocurrency rate will grow. We can only speculate and observe, and of course, buy bitcoin with the aim of getting income after selling it in the future. At the end of this article, we will consider a way to easily invest in cryptocurrency, even for a beginner using the Broex exchanger. But first things first.
The answer to the question whether you should sell bitcoin now depends on when you bought it and what your goals are:
Only long-term investments are recommended for beginners because they do not require any skills and knowledge, but at the same time they bring a large and stable income.
Let's look at examples:
These examples show that the profit taking strategy depends on your goals. If you're willing to wait 3-10 years for a big profit, you can sell nothing, and continue buying the dips.
If you are not ready to wait for a long time, and now the rate is higher than when you bought it, you should bravely sell bitcoins in order not to kick yourself in case of the next price collapse.
Those new to the cryptocurrency market who are pondering whether to sell bitcoin now often miss one interesting strategy. According to many experienced asset traders, the best profit-taking option is to sell in installments.
Let's look at an example. Let's say BTC were bought at a rate of $30,000, and then the rate rose to $60,000. In this case, you can sell part of the coins, for example 25%. After that:
The point is that it is impossible to guess when the price will turn around and start to fall instead of rising. By selling in parts, you will definitely not miss out on growth.
The same goes for buying cryptocurrencies. It is better to buy not with all funds at once, but in portions. For example, invest 10-20% of your deposit amount every month. Then you will definitely not buy at peak values, and will not get into a situation where you have to wait a couple of years until the moment when your investments start to turn positive.
Whether to sell bitcoin now is up to you. But since most people should consider long-term investments in cryptocurrencies (especially beginners who are not yet ready to trade), there is no need to hurry to get rid of the assets. On the contrary, it may be worth considering purchasing additional coins to increase the size of your investments.
If you are planning to buy bitcoins, or want to sell your digital assets and make a profit, you should choose an exchanger by the following parameters:
Broex exchanger meets these requirements. The website is designed in such a way that even a user who has never worked with cryptocurrencies could easily get used to it.
Advantages of Broex:
You don't have to worry about the safety of storing cryptocurrencies you bought through Broex. The website also provides a custodial wallet. This means that the company itself is responsible for the safety of digital assets. Therefore, Broex is the best choice for people who are just starting to invest in cryptocurrencies.