Are you looking for a great way to make quick profits from your investments? Have you thought about selling cryptocurrency?
Bitcoin and other cryptocurrencies are valuable assets that any smart investor should hold. Cryptocurrency is here to stay, and if you want to find a great lucrative asset you’ll find it in these unique digital currencies.
So how do you know when to buy and sell cryptocurrency? How do you choose when to buy and which cryptocurrencies to buy?
This guide will show you how to get started.
Let’s start with understanding cryptocurrency:
Which Cryptocurrency Is Best?
There isn’t a ‘best’ cryptocurrency, but you do need to pay attention to which ones are most popular at a given time. Since its inception, Bitcoin has dominated the cryptocurrency sphere. For both seasoned and amateur investors, Bitcoin remains the preferred choice.
However, once someone becomes well-versed with cryptocurrencies they tend to delve into altcoins. Bitcoin Cash, Ethereum, Ripple, are some of the favorite altcoins.
You need to research what cryptocurrencies are popular at different times and among a given population. For example, a coin such as Monero is ideal for privacy-conscious individuals. Ethereum has also been used in the financial industry.
How Much Do I Invest?
You should only invest what you are comfortable with. If investing $100 seems more comfortable than $1,000, then you should only invest $100. While your returns with $100 will be less, one should never invest when they feel uncomfortable.
You should also only invest what you are willing to lose. Investing is always a risky endeavor; as a result, always go with the assumption that you will not recover the money you invest.
As you start to feel more comfortable with cryptocurrency, you can start investing more money. You should observe which of your cryptocurrencies have done well to see where you should put your money.
How Do I Buy Cryptocurrency?
The best way to buy cryptocurrency is to find a great cryptocurrency exchange such as Coinstash. This is a service where you can buy and sell cryptocurrency using an online service. Your cryptocurrency are then stored on an online wallet, managed by the exchange.
You can buy cryptocurrency on these exchanges through your credit card or bank transfer. Once you receive cryptocurrency, you can use it to buy other cryptocurrencies. So if you buy 1 Bitcoin, you can use some of it to buy some Bitcoin Cash, a bit of Etherum, and portions of Ripple!
When you buy cryptocurrency, you have the freedom to buy fractional amounts. If owning 1 Bitcoin is out of your budget, you can buy fractional amounts of that Bitcoin. You can continue adding to this fractional share until you reach 1 whole share if you wish.
Since your ultimate goal is to sell cryptocurrency, you want to consider how often you will buy cryptocurrency. You might want to buy cryptocurrency once and then consider selling at a later stage. Only after that might you consider buying more cryptocurrency.
Or, you can focus on buying cryptocurrency on a regular basis. Then you can start selling cryptocurrency whenever you find the right opportunity.
When Should I Buy Cryptocurrency?
So when is the right moment to buy cryptocurrency? At first, you should spend at least a week observing the market before making a purchase.
This will help you get an idea of the trends of a particular cryptocurrency. If you expect a cryptocurrency to plummet, you might want to buy it at that moment. If you expect it to rise you can choose to wait for a downturn.
However, there’s also the possibility that the cryptocurrency will continue to rise. In such a case, you might want to buy as soon as possible. This is a standard investing dilemma. You might find the price to be expensive today, but it might be even more expensive tomorrow.
Once again, only buy once you feel comfortable. However, you want to make sure you get the ideal price when you buy. Make sure you make a note of the price at which you bought a cryptocurrency.
How Do I Sell Cryptocurrency?
The easiest way to sell cryptocurrency is directly through the cryptocurrency exchange.
The cryptocurrency exchange will have an option to sell the cryptocurrency of your choice. You are free to sell the cryptocurrency in whole or in part. You can either sell the cryptocurrency to a fiat currency or convert it to another cryptocurrency.
You might want to consider converting cryptocurrency every now and then. This can help you increase your profits when selling for fiat currency. For example, if you aren’t pleased with Ethereum’s performance you can convert it to a cryptocurrency that you are satisfied with.
When you sell cryptocurrency, it only takes a few seconds to receive the funds in your bank account. You can then use your profits to buy more cryptocurrency at a later stage if you wish.
When Should I Sell Cryptocurrency?
You should sell once the price of a cryptocurrency rises. If you find that your cryptocurrency continues to plummet, you might feel like selling to avoid any further losses. However, it’s best to hold onto a cryptocurrency in such a scenario. You should also not sell to break even, unless you need the money.
To be successful with investing with cryptocurrency, you have to hold it in the long-term. You shouldn’t expect to buy cryptocurrency and sell it a few days later. For example, in 2020 Bitcoin shot up to a price it hadn’t reached in 3 years!
The person who purchased Bitcoin in 2017, should have waited until late 2020 to sell in order to make a great profit. The best option is to regularly buy cryptocurrency and hold it for as long as possible.
Check the exchange occasionally to see how the price is fluctuating. However, for lucrative profits hold onto your cryptocurrency for as long as possible.
Start Investing in Cryptocurrency
Now that you know how to buy and sell cryptocurrency, you can start investing in them. Make sure to share this guide with others interested in cryptocurrency.
You can read more about cryptocurrency and investment tips on our website.