At the preliminary glance, the answer seems to be very simple to this question, “how much should I sell Bitcoin for”. Certainly, you must try to sell it at the highest market rate available, and by all means above the cost price at which you purchased. But in practice, a trader oscillates between maximizing his profits and minimizing his losses. There are many dynamics involved in the crypto market, which must be taken care of well, while deciding on how much should Bitcoin be sold for, and also how much percentage should be sold out of the total holdings.
How Much Should You Sell Bitcoin For
The traders who invested on early, around 2009 -2012 say, Bitcoin paid off in a big way for them. They sold early, did not have to wait long term, and made huge profits. The market is slower compared now, but still you must decide how much you should sell Bitcoin for. The market is very volatile and even seasoned investors try to strategize as to when must they sell their Bitcoin and for how much should they sell it.
Consider the Following Points
If you are deciding on how much should you sell Bitcoin for, keep a few things clear in your mind.
1. For example, you purchased Bitcoin at 1000 USD, and aimed at a profit of another 1000 dollars when you went for the buy. Now as soon as the price of a Bitcoin hits the 2000 USD mark just sell it off. Do not long for more as you can make a safe trade now. Or say, you purchased 2 Bitcoins at 1000 USD each, and just aimed to reap a small 1000 USD profit, then sell off when the price hits 1500 USD. Now this also shows that you can make more money out of Bitcoin, if you invest larger sums. ( I am not factoring in the transaction and other costs involved for clear and easy demonstration in the example).
2. If you are an experienced and more practiced trader, you can go for pair trading and know which one to go for a long position and which one for a short position for the legs of the trade pair, and the gap will give you a price to sell for.
3. Yet another perspective is arbitrage betting, where you already bet in the different outcomes with a Bitcoin, and you are sure to make some profits. Now here the price of the Bitcoin you sell for depends upon the profit you wish to make, the current price, and the number of Bitcoins you invested.
4. Next scenario, the Bitcoin has crossed its cost price at which you purchased, however you afford to hoard it for longer and the prices are expected to rise. Then you must wait. So, what is the longest period that an investor can hoard Bitcoin for, will affect the decision.
Therefore, there cannot be any hard and fast rule as to when to or how much should the Bitcoin be sold for. It is always good to employ some good online trading platform, that houses multiple exchanges and helps you decide when to sell a Bitcoin and how much to sell it for depending upon your portfolio. One such name is executium.com who is serving the market reputably in this respect.