Four essential things you need to consider while selling crypto
People are taking advantage of the volatility present in the crypto industry. Retail traders are buying crypto at a lower price and selling them when the price reaches a new high. Due to the high volatility, they manage to make a decent amount of money within a very short period of time. Things might seem very easy at the initial stage but if you take a look at the professional trader approach, you will never see that they are buying crypto without analyzing the technical factors. In order to sell crypto at the right price and ensure safe transactions, you need to follow some basic parameters. Let’s explore 4 essential elements that you need to consider while selling crypto.
Market sentiment
Assessing the market sentiment is critical to your success. You need to sell crypto when the sentiment is bearish. Selling popular currencies like Bitcoin, Litecoin, Ripple, etc. when the market momentum and sentiment is extremely bullish is an amateur mistake. You are missing out on a decent profit as you will be selling the digital asset at a much lower price. Learning about the market sentiment is not that tough.
Those who have strong knowledge of the technical and fundamental aspects of the market can easily determine the course of the trend. If necessary, you can read the analysis of the professional traders at bigX. By using their free resources, you will get a decent idea about buying selling Bitcoin.
Use an authorized broker
Some cryptocurrency users don’t care too much about the market price. Basically, they earn crypto by using their mining rig. But still, they need to be very careful. As a miner, you need to sell BTC to a reputed broker like bigX so that you know you will never get scammed. On the other hand, if you chose a scam broker or sell it the third party who doesn’t have the relevant paperwork and authorization to conduct such transactions, you might lose a big sum of money. The worst thing is, you can’t complain to anyone about the scam.
Finding a great broker is not too complex. First of all, check the customer service, website reputations, and online reputations. If things seem standard, you need to check the regulations and licensing documents. If the paperwork of the broker is transparent like at bigX, you are dealing with a safe broker.
Sell at the resistance
As a cryptocurrency user, you must have strong technical knowledge. Without having the ability to analyze the technical details, it is nearly impossible to make some serious profit from this market. The majority of the retail traders and investors fail to make a profit using the resistance and support. Professional traders never miss a slight opportunity to increase the profit potential. They are very good at analyzing the critical support and resistance level. They always sell at the resistance and buy the asset at the support. By doing so, they utilize the investment market in the best possible way.
Be careful with the news
Being a cryptocurrency user, you must be careful about the major news. Let’s say that you are selling a big amount of Bitcoin at the current market price. Right before you hit the sell button, the price of Bitcoin drops by 500 pips in the global market. So, for one Bitcoin, you are basically losing $500. It might go in your favor and you might earn $500 per Bitcoin if the price shoots up right before you hit the sell button. But still, this is mostly luck.
It is important that you sell the Bitcoin when the market is relatively stable and no major economic announcements are scheduled. By developing such a habit, you can easily save a decent amount of money in the long run. Most importantly, you won’t have to deal with heavy slippage.
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