Bitcoin continues to beat its own records… People are wondering if the growth will continue, or if it’s time to sell and get some profits. Some people asked me what they should do when they want to sell. 2017 was a remarkable year for cryptocurrencies. Their total capitalization has increased 15 times since the beginning of the year.
When and how to sell cryptocurrency.
I thought about this question many times… And I asked myself many times if I should sell and take small profits or I should hold and see what happens. And I also had many other questions from my readers:
- How do I sell?
- Can I withdraw money in your bank account?
- Do I have to declare it and pay taxes?
- If I keep them can I do with cryptocurrencies today?
There were more similar question like ones above that people around were asking. But the answer to all these questions is only one, and I will tell it to you below.
In the present, you cannot pay with cryptocurrencies for many things. Bitcoin for example is expected to be used for large transactions, since it doesn’t make sense to buy small stuff with it. The time of completing a transaction with BTC or the fees paid for it does not make it usable for buying small stuff. But there are other cryptocurrencies that are made especially for that, and soon you will be able to buy anything you want with cryptocurrency.
I think the best idea for everyone is to keep their cryptocurrencies and do not sell them.
Except when we see a price drop that would allow us to buy cheaper and expand our portfolio. I am making such calls from time to time, and here is how it works:
- Moment A, when I noticed that the BTC price will have a correction, I make the decision to sell my investments in BTC when the price is high.
- Moment B, when I see the price has fallen, and I make the decision of buying low, just before the price will start to rise again.
In this way we secure even more cryptocurrency, but it’s a risky process and many lose money doing it. They buy but price keeps going down, or they sell but price still increases. A lot of study is necessary in order to find the best coins and the best times for buying and selling. This is the rule that you should keep in mind:
Buy low, sell high.
The first mistake people do is that they start to get the taste of trading more often, even day trading. If you do that, you compete against people who do that every day and it’s hard to make profits on the long term this way. Most of day traders are losing money on the long term.
Today you can shop online and also find physical stores where you can pay with bitcoin. There will be more and more businesses accepting different cryptocurrency as payments. You can even pay wages with bitcoin, or you can hire freelancers for different tasks. You can send Ripple for example to a relative in another country, almost instant; and with very low commissions (almost free) compared to wire bank transfers. When you need to pay for something, you can use crypto.
Remember that cryptocurrencies have a lot of advantages over physical money:
- Small fees.
- They do not have the geographic boundary.
- Protecting identity.
- They are sent directly from one person to another, you don’t need a bank account.
- There are ways to secure 100% of your safety, so no one can steal them.
As people will realize these benefits and will be able to use cryptocurrency at more and more payments, the demand for them will grow. And if more and more will buy and less and less will sell, the demand for ordinary coins (EUR, USD) will drop considerably and the situation will be overturned. Money will lower their price, and cryptocurrencies will appreciate even more and become more stable. Those who do not have cryptocurrency and will keep storing their assets physical money will panic. And they will rush to get rid of money and buy cryptocurrency. But it will be too late. Because the price will be too high and nobody will be interested in USD, or EUR.
This is not a science fiction scenario. There have already been isolated occurrences that are likely to lead to this outbreak in countries like Venezuela or Argentina. And I would not be surprised to find out soon enough about the first government announcing the renouncement of the national currency and the switch to cryptocurrency.
What are the risks?
In conclusion, I see a small risk and a possible enormous reward for those who keep their cryptocurrency in the long run. And I see a big risk, even if not in the short term, for those who do not have cryptocurrency at all.
Which is not our case.
In conclusion, it is unlikely that I will ever recommend selling them during this program (perhaps only short-term while waiting for an opportunity).
For the most conservative, however, when we reach 100% profit, you can sell half of the cryptocurrency. The remaining stake in the game will be a lucrative profit and you will make it impossible to lose any cent. Otherwise, whenever you need money to buy something and you have to go into the crypto, first check out if you can buy it directly with bitcoin or another cryptocurrency.