How long should you keep your cryptocurrency before selling?

The cryptocurrency market is volatile and unpredictable. It’s hard to keep track of all the coins, let alone decide which ones are worth your money. Focusing on long-term sustainability rather than short-term gains is essential when investing in cryptocurrencies.

Is my investment aligned with the cryptocurrency’s community?

A coin’s community is a critical part of the investment and one that can be difficult to gauge. What you need to know is:

• The size and activity of its social media channels?
• How much community support does it have? How many people are actively promoting it? Are they passionate about it or just trying to make money? Is there an active developer team contributing code updates? And what do they plan on doing in the future? A good project will excite you, while a bad one will leave you cold. Even if you’re looking at price charts and seeing that everything looks fine now doesn’t mean it won’t fall apart later.

What is the current trend of the coin? Is it going up or down?

• Check the price of your coin on different exchanges. The price of some coins can vary greatly depending on where you buy it from, so make sure you compare apples to apples by checking the exchange for multiple prices.
• Look at a price chart. Price charts are useful because they show how much a coin has fluctuated over time. That gives you an idea of whether or not its value is going up or down. You can find these charts by searching for one on Google or using TradingView.
• Compare with other coins’ prices and movements to get an idea of what’s happening in general trends.

Has the coin peaked or is there more room for growth?

It would be best if you also considered the coin’s current price and how it’s likely to change. If your investment is still at an early stage, it may be best to wait until you have more information about what will happen with its value in the future.

For example, if you think Bitcoin will continue growing in value for years to come, then you should hold onto your coins for as long as possible. You may even want to sell later when one Bitcoin is worth $80k or more. Only opt for this if you don’t expect any negative news about cryptocurrencies over time. That is unlikely to happen, though.

Is there enough liquidity in the exchange for my coins?

The first thing you need to know about liquidity is that it’s not just the amount of money in an exchange, but also how quickly and easily that money can move from one person to another. The more liquid a coin is on an exchange, the easier it will be for you to sell it without having to accept too low a price.

Liquidity also plays a role in determining how much you can buy or sell at any given time. For example, suppose there’s no one else trying to buy or sell your coins at the same time as you are. In that case, they’ll still be available no matter what price they’re listed at. Nothing stops anyone from buying them until someone else comes along who wants them more.

On the other hand, if many people buy or sell coins at higher rates than yours, there will be less competition for those coins.

How much volume does the coin have in comparison to others?

It would help if you also considered the volume of the coin in comparison to others. 

A low volume doesn’t necessarily mean that you shouldn’t buy it, but it does mean that your investment will be more volatile than if you had invested in a coin with a higher volume. The higher the volume, the less likely it is that an individual investor can affect its price significantly. 

Plan on selling your cryptocurrency within six months or so? A coin with lower trading volume may be better. Its movements are less likely to affect its value as much as they would with a high-volume cryptocurrency.

Plan well when looking to sell your cryptocurrency

When you’re planning to sell your cryptocurrency, taking a long-term view of the market is essential. You want to avoid getting caught up in short-term volatility and making a rash decision that could cause long-term financial harm.

It’s also important to remember that many other factors could affect your investment price when selling. That includes market sentiment and external news events. 

It’s hard enough figuring out how much money you’ll have after taxes once you’ve sold your crypto assets. There’s no need for additional headaches by not being aware of these variables ahead of time.

Conclusion

You will likely lose money if your investment is not aligned with the cryptocurrency’s roadmap, community, or current trend. 

You need to determine why you bought the coin in the first place and if it still makes sense for you. If there is insufficient liquidity on an exchange for your coins, then it will be difficult to sell them off quickly. 

Finally, how much volume does this coin have compared with others? If it has less than other coins available on exchanges at the moment, it may be nearly impossible for you to sell off quickly as well

None of the information on this website is investment or financial advice and does not necessarily reflect the views of CryptoMode or the author. CryptoMode is not responsible for any financial losses sustained by acting on information provided on this website by its authors or clients. Always conduct your research before making financial commitments, especially with third-party reviews, presales, and other opportunities.