As a crypto trader or investor, you’ll agree when I say that one thing you look forward to is getting your profits from your crypto investments. In fact, you might not get any profit for a long time because of the nature of the market. That’s why many traders equip themselves with trading courses, market analysis, and other strategies to reduce losses.
However, you can do several things to maximise your profits when selling your bitcoin. They include:
- Selling during a bull run
- Dividend earnings
- Monitoring market trends
- Having realistic targets
We’ll delve into these individually to show you how you can maximise profits as a Bitcoin investor or trader. Let’s get into it.
5 Ways to Maximize Profits When Selling Bitcoin
One way you can make more regular profits is by lending your bitcoins to other Bitcoin professionals. This might also be considered a passive way to profit from Bitcoin. However, you must exercise caution while lending your Bitcoins to others, just as you would with actual money.
2. Selling during a bull run
Also known as a bull market, this is when people purchase a lot of cryptocurrencies, which increases their value even further. When more people invest, the prices will soar swiftly. Also, once people begin to believe positively about a market, they prefer to invest more frequently, and this gives you the leeway to sell your bitcoins and make profits.
3. Dividend Earnings
Just like stock dividends, you can choose to invest in Bitcoin and get a fixed interest periodically. This will require you to buy it for the timeframe you would like to earn a profit. Then, when there’s a peak in the market, you can sell. This requires thorough research because you want to be sure you’re making a good decision when choosing to invest in its dividends.
4. Monitoring Market Trends
This is one way you can maximize your profits. You can monitor trends by looking at technical analysis, which deals with past market trends and using it to forecast future prices.
Another method for monitoring market trends is social sentiment analysis. This is the monitoring of the attitudes and opinions of the cryptocurrency community on social media. It can give you a perspective on the market and allow you to make the decision of whether to sell or hold back.
5. Have realistic targets
It’s very important that you set realistic profit targets for your trades. With this, you maintain discipline, and you won’t be in the same position expecting unrealistic profits. If you expect a huge leap before selling Bitcoin, your hope might be dashed because the price might not be very favourable. It is unlikely to experience a huge demand for Bitcoin that will result in a huge price surge due to the initial high price needed to buy Bitcoin.
Frequently Asked Questions About Ways to Maximize Profits When Selling Bitcoin
How do you make daily profit with crypto?
There are different ways to make daily profit from cryptocurrency apart from selling. You can:
- Lend cryptocurrency to another person for a period of time in return for the cryptocurrency plus interest.
- Mine crypto through integrating specialised computers to solve complex problems.
- Refer people to certain cryptocurrency applications, which helps you earn commissions which are offered as incentives for referrals.
- Be on the lookout for airdrops, which are basically giveaways carried out in the cryptocurrency community.
Is it better to sell Bitcoin when it is low or high?
It is always better to sell Bitcoin when it is high. The determining factor as to when it is beneficial to sell Bitcoin is the price it was purchased. Selling Bitcoin involves correctly predicting the market price of Bitcoin, which can often be hard to do. One thing to do in order to successfully make a profit is to avoid panic selling when the price of Bitcoin drops.
What months are Bitcoin most profitable?
To determine the months Bitcoin is most profitable, it is necessary to study the different prices of Bitcoin over the past few years on each month. It’s profitable during the months of April, May, October and November. This was determined by looking at the average profitability of bitcoin in those months over the past 12 years.
Is cashing out Bitcoin taxable?
Yes, cashing out Bitcoin is taxable. Your tax rates for your Bitcoin gains are just the same as the capital gains taxes. The only thing is that you’re being taxed based on your geographical location.
In Nigeria, according to Section 3(a) of the Capital Gains Tax Act, digital assets, including cryptocurrencies, non-fungible tokens, and other tokenized assets, will have a 10% tax on profits. Some countries in Africa have also made profits from Crypto subject to taxes. Examples include South Africa and Kenya.
How long does it take to get money after selling Bitcoin?
This typically depends on the method being used or the online wallet being used to sell your Bitcoin. For example, If the transaction is done through Binance, a bank transfer is usually done within a day, but it may differ depending on your country.
However, with the Breet app, you can sell your Bitcoin with great exchange rates and get your money into your bank account within minutes. Breet is accessible to crypto traders/investors in Nigeria and Ghana.
Now that you’ve figured out how to make profits when selling your Bitcoin, the next step is for you to get the best app that’ll help you achieve this – the Breet app! This app offers you a safe and smooth trading experience with an in-app crypto rate calculator and the juiciest exchange rate.
If you are in Nigeria or Ghana, your cash can be sent to you in Naira or Cedis directly to your bank account, thanks to the Automatic Settlement feature. So, when you’re ready to sell Bitcoin and make maximum profit, use the Breet app.
Good luck selling!