black hand and white hand trading bitcoin

 

When is the best time to sell crypto? That’s one of the first questions most people ask when they start getting into this field, and it’s a question that doesn’t have an easy answer. 

While there are some important factors to take into account when you’re trying to make this decision, like your overall strategy and personal finances, there are also plenty of things that are totally unpredictable, like market trends and even geopolitical events.

Best times to sell

Just because you bought something doesn't mean it's a good idea to sell it. It really depends on what your goal is. 

If you're investing for the long term, then you should be keeping your assets, as they could still go up in value. If you're looking for a quick trade, then selling might be the way to go. 

It all depends on the investment and how much risk you want to take. Generally, people are advised to not invest more than 10% of their overall net worth into cryptocurrencies like Bitcoin.

Best times to buy

Cryptocurrencies are highly volatile. They can go up in value or down in value by thousands of dollars in a day. It's hard to know when the right time is to buy or sell. 

If you're considering buying any cryptocurrencies, it might be worth waiting until the market dips before buying so that you can get them for a cheaper price. 

Similarly, if you're thinking about selling any cryptocurrencies, now might be a good time because the prices are at their highest point in months.

Best times for large market movements

Cryptocurrencies experience large fluctuations in prices. Sometimes, this is because of a big announcement, like the US Securities and Exchange Commission's approval of the first Bitcoin ETF, which caused the price of Bitcoin to jump up. 

Other times, it's more unpredictable. With cryptocurrencies being so volatile, what should you do with your coins? Sell them right away? Hold them for a while longer? Or buy more?

What should you be doing with your money in between?

There are a number of actions you can take with your money in the meantime. If you have cash you're not going to need soon, put it in an interest bearing account like a savings account. 

Alternatively, if you want some risk but still want the potential for a return, invest in stocks. Make sure not to invest more than 10% of your portfolio on any one stock though! 

Another option is to buy gold or other precious metals, but be careful as they tend to do well only when markets are doing poorly. 


If you've got a lot of spare change lying around and don't mind taking some risks, start day trading cryptocurrencies such as Bitcoin or Ethereum.

How do you judge market conditions without putting your capital at risk?

An often-overlooked way of gauging the state of the market is to see what other investors are doing. One such indicator, called the spread between bid and ask prices, can help you decide whether or not it's a good time to buy or sell. 

Bid price refers to how much an investor is willing to pay for a stock. Ask price refers to how much the same investor will get if they decide to sell that stock. 

The spread between these two numbers might be large because there are few buyers for stocks (i.e., low demand), making it expensive for someone who does want them at current prices.

Final considerations

If you're a long-term player, then the answer is always hold. If you're a short-term player, then it's as good of a time as any. 

There are pros and cons to each strategy, but there is no one definitive answer that applies in every case. Decide what suits your needs best! 

If you need access to cash or fiat currency, then it might be worth getting out now while the market isn't too volatile. 

On the other hand, if you have significant faith in the future of cryptocurrency and believe prices will rebound soon (or have another reason why holding is better), then waiting until after Bitcoin splits on or around August 1st might be your best bet.