With more and more investors looking to get into the cryptocurrency market, now may not be a bad time to start thinking about selling your BTC tokens in order to turn a profit. If you decide to sell, there are a number of ways to go about it. However, it’s important to understand every aspect of buying, selling, and storing Bitcoins to ensure you go about things the right way.
Right Time To Buy?
The first thing to understand about cryptocurrencies is that they can be viable investments both in the short-term and long-term. This can lead to significant profits if you play your cards right. However, the volatility of cryptocurrencies can make it difficult to make the right investment decisions if you don’t have a strong grasp of the crypto market.
When To Sell?
As mentioned, Bitcoin and other cryptocurrencies can be used as either short-term or long-term investments. Long-term investors are more so investing in blockchain technology, which is the technology that makes cryptocurrencies possible. Short-term investors are more akin to day traders on the stock market who are looking to make the right calls amidst fluctuations in price.
For someone in financial trouble looking to get out of trouble quickly, short-term Bitcoin training can pay off. However, many financial experts recommend selling no more than 50% of your stake in Bitcoin. Many analysts are predicting an increase in the value of BTC, as more and more people are growing comfortable with cryptocurrencies. Liquidating all of your Bitcoin assets could deprive you of future gains.
Unless you are in dire straits financially, it’d be wise to hold onto 50% of your Bitcoin investment for the long haul. It’s true that hacks and increased regulations have caused the value of Bitcoin to drop. But as more prominent companies look to invest in it, Bitcoin will remain an investment that has plenty of room to grow.
The 4 Ways To Sell Bitcoins
As mentioned, there are a number of ways you can go about selling your BTC tokens when you feel the time is right. This gives you some flexibility, although the process is not nearly as complicated as you may think, regardless of what method you choose. Here is a closer look at the four best ways to sell off part or all of your Bitcoin investment.
Using a cryptocurrency exchange may be the easiest way to sell Bitcoin. There are a number of exchanges that you can choose, although most of them do more or less the same thing. That being said, you’d be wise to do a little research and find one that makes you comfortable. Once finding an exchange, you create an account on that exchange, which usually requires several security checkpoints in order to confirm your ID. This can take several hours or even days in order to avoid instances of fraud.
Once this is complete, you can send your Bitcoin currency to another account, making sure you keep a record of the public address of that person. You will then create a “sell order” so you can move your currency into another person’s account. For this, there may be a fee based on the price of the transaction. It’s also important to keep in mind that you shouldn’t keep currency on an exchange for an extended period of time or you may be vulnerable to hacking. To avoid any complications, try selling your currency when traffic volume is low. This will help the transaction go through as quickly as possible.
Direct trading platforms can give you a little more control over the selling of your Bitcoins than a typical exchange site. Of course, this will also require a registration process on direct trading platforms that will consist of multiple steps in order to verify your ID before you can officially register as a seller. Once you are a registered seller, potential buyers may start to contact. You will then be able to communicate with them directly without any third-party involvement while you work out a trade.
Of course, keep in mind that you need to be able to trust the potential buyers who contact you. It’s also critical that you have a good understanding of the trade process and the value of your BTC tokens before negotiating with buyers. Direct trading platforms also have some of the same vulnerabilities as exchanges when it comes to hackers. However, the benefit of direct trades for sellers is that fluctuations in price and potential fees are less of an issue.
Peer To Peer Marketplace
A peer-to-peer (p2p) marketplace operates a little differently from exchanges or direct trading platforms. A p2p marketplace attempts to bring people together who can make a trade that will benefit both parties. It can be advantageous for people looking to buy Bitcoins with credit cards, as well as those looking to exchange their Bitcoins for goods and services.
Trading this way is usually short and simple because it doesn’t require a lengthy registration process. However, people usually pay for that convenience in the form of a costly transaction fee. It’s also important to recognize that p2p platforms are still in the early stages of development. Over time, some of the flaws in p2p trading may be fixed.
Finally, it’s possible to sell Bitcoins in person. This tends to simplify the process by avoiding any kind of registration on a platform. All it takes to sell Bitcoins in person is scanning a QR code on a smartphone, which allows you to receive money for your Bitcoins in an instant. Of course, this method is best utilized when selling to people you already know, such as friends and family members.
If you’re buying or selling Bitcoins in person with a stranger or acquaintance, you will have to negotiate the sale with them beforehand and always be wary that they may be trying to take advantage of you in some way. Fortunately, there are platforms available that can help facilitate this kind of trade, providing some level of mediation to work out an agreement that works for both parties.
If you are considering selling part or all of your investment in Bitcoin, keep in mind that there are several methods to go about doing it. Before going through with anything, you should always do research on what method you want to use and what platform is the best for your situation. If you do your due diligence, it becomes much easier to turn Bitcoin and other cryptocurrencies into a fruitful investment.