How to sell cryptocurrency successfully: avoid these rookie mistakes

How to sell cryptocurrency successfully: avoid these rookie mistakes

Even if you are an experienced trader and have mastered the art of how to sell cryptocurrency, you are not fully protected from making a costly mistake. But imagine if you are a mere beginner, and the crypto world seems extremely complex, thus mistakes can happen right from the start and lead to financial losses and other negative outcomes. To avoid mischief, it is essential to comprehend what common mistakes new traders can face when they only begin to understand how to sell cryptocurrency, and what can be done to eliminate them.

Crypto Currency Selling Guide

1. Selling digital assets at the wrong time

The cryptocurrency market is volatile and requires a great deal of careful analysis. Crypto prices can remain rather stable for a prolonged period or they can drastically increase/drop in a matter of minutes. One of the main mistakes that the majority of novice traders tend to make is not paying much attention to ways on how to sell cryptocurrency and selling their assets during a downturn. New traders can experience panic when they see a sharp drop in prices and decide to sell their assets to avoid further losses, although this tactic does not bring any long-term benefits. If you decide to sell at the lowest point, you lock in losses, and it is better to wait for the market to stabilize and recover.
What can be done to avoid it:
Before you decide on how to sell cryptocurrency with the minimum loss, carefully study the market cycles to be able to reflect on the current situation. Read the news regarding this specific coin to learn about the reasons behind the price drop and the predictions about further development scenarios. It is quite advisable to use pre-set selling prices to avoid making a financial mistake while caught up in emotions.

​2. Disregarding commissions and additional expenses

Many new traders are only thinking about how to sell cryptocurrency and make a profit, and do not get fully acquainted with the applicable exchange fees, withdrawal or deposit fees or any other expenses linked to cryptocurrency trading. The amount of fees is rather vital when selling larger amounts of crypto or handling frequent transactions, where commissions can have a substantial effect on the bottom line.
What can be done to avoid it:
Even before you open a trading account, scrutinize the commission structure on each platform you are planning on utilizing for crypto trading. Some platforms have discounts for new users joining the community, while others have a beneficial referral program or reduced commissions for using their internal tokens.

​3. Using untrustworthy platforms

When traders are just starting to perfect the art of how to sell cryptocurrency, they often do not pay enough attention to studying real-life reviews about the platform or its reputation within the crypto community, which can result in a partial or even full loss of digital assets and personal information. Unreliable platforms are subjected to sudden hacker attacks or may even close down without a prior warning, leaving the users confused and suffering from major financial losses.
What can be done to avoid it:
Always and with no exceptions check the reputation before registering on a platform and exploring the ways on how to sell cryptocurrency. Carefully read the reviews and study the information about licenses and the level of implemented security, and if you are using P2P platforms, then make sure that the service provider of your choice has a fraud protection system.

​4. Mismanagement of taxes

Tax liabilities tend to slip the mind of many traders when selling crypto assets. The regulations in the majority of countries are quite strict, which is why failure to pay cryptocurrency taxes might have some unfortunate consequences, like excessive fines or even legal prosecution. Tax miscalculation will also have a negative impact on your net profit.
What can be done to avoid it:
Do research and study the tax regulations in your region. Some jurisdictions request the population to pay taxes only when the digital asset is sold. There are various tax calculation tools available online, so you can use these specific services to properly calculate the amount you will have to pay for all the transactions.

​5. Executing high-volume transactions on a single market

If you decide to sell a substantial volume of your crypto assets on a single platform or using a single order, it can trigger a price drop due to low liquidity on the platform. This common mistake can lead to significantly lower returns than you could have achieved if encompassed a more deliberate strategy.
What can be done to avoid it:
Use platforms that have high liquidity or split your sale into several orders. If you prefer operating on decentralized exchanges (DEX), make sure to check the market depth before selling the assets.

​6. Neglect of security measures

Numerous traders start to understand how to sell cryptocurrency but lose their assets due to neglect of basic security: the use of weak passwords, no 2FA, or keeping the funds in hot wallets. All these factors make traders vulnerable to hackers, and it is almost impossible to retrieve digital funds once they are lost.
What can be done to avoid it:
​Protect your personal information and always use two-factor authentication in digital wallets and on exchange platforms. Never share any sensitive personal information with third parties and avoid visiting phishing sites.
Buying and selling cryptocurrency is not only an opportunity to make a significant profit but also a process which requires constant care, scrutiny and a competent approach. By learning how to sell cryptocurrency and avoiding these common mistakes, you can both save your funds, and also increase the efficiency of your transactions. Analyze the market at all times, choose safe and reliable platforms and do not neglect following safety measures.
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