When do you sell crypto? Well, the answer to that is different for everyone. Some people buy crypto to hold on to it, hoping that the value of their digital assets will continue to grow over time. Other people buy crypto in order to use it as a currency and make purchases with it.
Still others buy crypto because they believe they’re getting in on the ground floor of a new technology that will be revolutionary in the future. No matter what your reasons are for buying crypto or what you plan on doing with it, you’ll want to know when it’s the right time to sell.
Stellar XLM is an incredibly popular digital currency and many people who invest in it hope to see huge returns on their initial investment. The market is volatile and so any time you sell your XLM, you might see your investment drop as quickly as it rose. To trade your XLM to USDT, go for a reliable exchange like KuCoin to give you the best offers.
If you’re looking for stability and a safe exit from your investment, then it’s best not to sell your XLM too quickly. On the other hand, if you think that the stellar price is going up in the near future, then it might be worth cashing out today before it hits even greater heights.
But if you’re looking at your cryptocurrency investments more as an investment than as a currency, then timing is everything. Just like other markets and investments, there are certain times when selling could be a good idea and certain times when holding is better.
When To Sell Crypto?
When it has doubled or tripled in value
In short, don’t sell your crypto when the market is down. The cryptocurrency market is volatile. So volatile that most of the time it’s down. So if you’re going to buy cryptocurrency and hold on to it, you need to be prepared for a lot of potential losses. You need to plan for the future, not the present.
Most people who buy crypto tend not to hold onto it very long. They invest, hope for a good price in the short term, and then sell once they make a little money. If you are buying crypto with this mindset, then you will inevitably see profits come and go.
One excellent option for crypto investing is TRON TRX. One advantage that Tron has over other cryptocurrencies is that its TRX price always seems to rise during times of uncertainty about the entire crypto market.
So as long as you still believe that TRX is a good investment and that blockchain technology will eventually take over from fiat currency, then it might be a good idea to hold onto your TRX for at least another year or two—maybe even longer.
This is fine if your intention is only to make a little money and then cash out. That’s how most people are treating cryptocurrencies right now. But if your intention is to actually use cryptocurrency as an alternative currency or store of value, then consider these tips:
1) Don’t invest more than you can afford to lose .
2) Don’t invest more than you can afford to spend .
3) When the price is high, keep investing (if you have spare cash).
When there isn’t much development
When you no longer believe in a cryptocurrency’s potential for growth, it may be time to sell your investment. This can be difficult because of the sizable gains that some investors have made with their holdings. If you can’t bear to part with your cryptocurrency, then you might want to consider hodling.
It may seem tempting to ride your favorite coins all the way up, but at some point it becomes unwise to invest any more money into it. If you have studied the market for a long time and think that the coin has reached its peak, now is the time to sell.
When there are better opportunities
If you’ve found better investment opportunities available on the market and you believe that selling your cryptocurrency assets will allow you to invest in them, then selling is an option for you. If you’re simply afraid that prices may drop further before they rise again, then it might be best to keep your assets and wait it out.
While it’s true that some people are making money with cryptocurrencies, many others are losing money. If you find yourself in the later group, it’s probably time to sell up and get back into the more stable world of stocks.
Factors To Consider In Selling Crypto
When you’re ready to cash out of crypto, it can be slightly daunting to consider how the actual process works. There are so many different factors to consider, and this is especially true if you’re looking to sell all at once or in regular installments. Here are some factors to keep in mind as you’re weighing your options.
Amount You Want To Sell
While it may be tempting to cash out as much as possible, it’s usually better to sell in manageable chunks. In order to determine what your reasonable limit should be, ask yourself how much you’re willing to lose on your investment, and how much more you think the price of your favorite coin will rise.
If you want to retain some of your investment and still make a profit, it can be helpful to set a target price for the amount of money you want to earn from selling off some of your crypto holdings.
Tax Implications
The real life implications of cryptocurrencies can often be overlooked by new investors. The IRS considers cryptocurrencies a capital asset and any gains or losses from the sale of them are taxable. Like other capital assets, you must report the sale of your crypto on the tax return as either short-term or long-term.
Since cryptocurrencies have been known to be quite volatile in the past, you should consider holding them for longer periods of time in order to avoid paying hefty taxes if their value happens to rise shortly after selling them.
