Many people just keep buying or hodling their favorite coins but don’t know how to profit and when is the right time to start selling.

Contrary to popular belief, you shouldn’t mason your hands to eternity. Especially in the crypto space, which is still in its infancy. Unrealized profit is just a number on the screen and means nothing until you reflect it in your bank account.

Knowing when and how to sell your digital assets is just as important as choosing the right time to buy. With this article, we hope to help you master this essential skill. Please note that this article is only for investors and not for swing traders or day traders.

Step 1: Establish clear and measurable goals

Start by setting specific and achievable goals. When you invest in cryptocurrency, decide what your goals are.

For example, let's say you bought Bitcoin at $20,000, then based on your own research, your goal should be clear: I will start selling when the price breaks $65,000. I will sell 20% at $65,000, $68,000, $70,000, $75,000, and then let time take over. Only when the buying conditions are met again later can you start buying long-term again.

Having these clear goals can provide a solid foundation for your selling strategy. Your goals can serve as a guiding light, allowing you to measure your success and stay disciplined in the volatile cryptocurrency markets.

Step 2: 50, 100, and 200-day moving averages

Now, let’s take a deeper look at the importance of chart analysis and moving averages in a selling strategy using Bitcoin as an example:

  • Check the price chart:
    When considering selling, perform a thorough analysis of the price chart of the cryptocurrency. In any case, you should start selling only when the chart is comfortably above the 50-day, 100-day, and 200-day moving averages. This positioning indicates that the market trend is bullish. Most people do the opposite of what they should actually do. They buy when the market is rising and sell when the market is falling.Don't be like them!You should do the opposite.

  • Understanding Moving Averages:
    Moving averages are indicators that smooth price data to create a single flowing line. The 50-day, 100-day, and 200-day moving averages are important references. Selling when the chart is above these moving averages means that the market has been in an uptrend for some time, which usually means it is a good time to sell before a reverse trend occurs.

Step 3: Monitor the Relative Strength Index (RSI)

The Relative Strength Index (RSI) is a powerful tool for measuring the momentum and health of cryptocurrencies. Use the RSI to determine when it’s time to sell:

  • Threshold 75:
    Sell ​​only when the RSI crosses the 75 threshold. When the RSI rises above 75, it usually indicates that the cryptocurrency is overbought and a pullback may be imminent. This is a valuable signal to consider a sell order.

If all three indicators are in line with expectations, you should start selling your tokens. Don't do the opposite and make the rookie mistake that 90% of people make, because those people will never make actual profits from the market.

By following these three simple basic steps, you can make a very smart decision when it comes to starting to sell your cryptocurrency. Remember, setting clear goals, analyzing charts and moving averages, and keeping an eye on the RSI are important components of a successful selling strategy in the digital asset space.

Never try to time an exact bottom or top for a market!

Trying to predict the times of cryptocurrency market peaks and troughs is like navigating treacherous waters without a map. Instead, a clear strategy, like the one we’ve outlined in these three rules, is your compass in the crypto wilderness. A solid strategy can ensure consistent, profitable decision making by mitigating the emotional factors that often lead to financial losses. In the volatile world of cryptocurrency, a clearly defined strategy can act as your anchor, guiding you to stay calm and confident.

Summarize

In conclusion, knowing when to sell cryptocurrencies is a critical skill for every crypto investor. By setting clear, achievable goals, carefully examining price charts, and keeping an eye on the RSI, you can make smart decisions to maximize your potential profits. Remember that emotional trading often leads to financial losses, so a well-thought-out strategy will be the cornerstone of your crypto journey. Whether you are new to crypto or an experienced trader, these rules are your trusted companions in making smart and profitable choices. The world of crypto is an exciting frontier, and with the right strategy, you can easily navigate it.