The early days of 2018 saw bitcoin’s price falling and as an inevitable result of this, many people were wondering what was the best way of selling bitcoins online. Of course, if you have already entered the world of cryptocurrencies then you will have acquired somewhere to keep your currency, a bitcoin wallet and you will have already discovered a broker who will sell you your bitcoins. The process of selling the currency is in some ways a reverse of this and your broker will help you with the sales, for the usual commission. If you are not reacting to the events of the early days of 2018 and are instead interested in a more long-term investment in the world of bitcoin, then there are certain factors to bear in mind.
The first thing to say is that you should do your homework and do it thoroughly. Do not let your enthusiasm get the better of your cool, calculating aspect. Research the brokers who are available and find the one who best suits your strategy and who will enable you to achieve your long-term goals. Pay particular attention to the fees charged for the spread to open a position and also note which brokers charge for swaps if you decide to hold a position open at the end of the trading day.
As well as researching brokers, also learn as much as you can about bitcoin itself. You probably already have a fair idea of how it works, but turn this into a detailed understanding of the infrastructure and the technology behind it, paying particular attention to recent developments. Remember that bitcoin is in a state of permanent flux, with technical developments vying with publicity and confidence as pressures on the price. The more you know and the more up to date information which you possess, the better your chance of selling at the right time.
One of the most important aspects of your research should be into the past performance of bitcoin. A great deal of the dismay felt by the price drop in early 2018 was felt by those who we were new to bitcoin and who had not thus familiarised themselves with the volatility of the cryptocurrency. If they had done the sort of research which you will do, then they would have known that even during bitcoin’s miracle year of 2017 the cryptocurrency had been subject to extreme price swings over short periods. If you know how bitcoin has behaved in the past then you will be much more likely to be able to spot the difference between common short-term blips, a product of natural volatility and a major price slump, probably the result of falling confidence and the end of a particular bubble market. How you react to that and when you decide to sell your bitcoin, and when you decide to buy again when the price fall has made it an attractive option is up to you, but remember this fundamental truth. In the world of selling bitcoin, you can never have too much information.
Spread betting, CFD trading and Forex are leveraged. This means they can result in losses exceeding your original deposit. Ensure you understand the risks, seek independent financial advice if necessary.
The value of shares and the income from them may go down as well as up. Nothing on this website constitutes a solicitation or recommendation to enter into any security or investment.