When you decide that it’s time to sell your Bitcoin, there are things you need to keep in mind to ensure your first attempt is hitch-free or that you’re making the right decisions when selling. You may have tried once, but it didn’t go as anticipated, so you’re trying to tie up loose ends by discovering the common mistakes to avoid when selling Bitcoin. In that case, you’re on the right path, and we’re sure your next transaction will be smooth.
You must be mindful of different factors depending on what you want to receive in exchange for your Bitcoin. So, in today’s article, you’ll know 8 common mistakes you should avoid when selling your Bitcoin.
Why Sell Your Bitcoin?
But let’s call a spade a spade, Bitcoin is notoriously volatile. It’s a market marked with high risk, and only the brave survive the long ride. It has been confirmed historically that the Bitcoin business rewards patience. The people most benefit from the bitcoin market are patient, long-term investors!
The Bitcoin market can rise or fall anytime, meaning you can make or lose money anytime. Market fluctuation happens for a reason—primarily to test the determination of investors. But, we can’t deny that the bitcoin business is highly lucrative; this should motivate you to sell Bitcoin.
While you arm up to embrace the business, also ensure you have enough risk tolerance to help you withstand every storm that may come along in the journey.
8 Mistakes to Avoid When Selling Bitcoin
1. Lack of Research
It goes without saying that plunging into anything without proper research is a recipe for disaster. Whether you’re buying or selling crypto, research is necessary. Do not make the mistake of selling your Bitcoin without researching everything, including the best assets to exchange, the best platforms to use, exchange fees, market predictions, your short and long-term goals, etc.
Ask yourself the difficult questions and ensure you have answers to them. Why are you selling your Bitcoin? What are you getting in exchange for it? Is this the right time to sell? Which platform is best in terms of fees, ease, and reliability? All these are part of the research you should do before selling your Bitcoin.
2. Selling Due to Fear or FOMO
FOMO is about emotional selling, which can result to losing funds durng trade. During serious dips, many investors sell due to pressure or get caught up in the hype. A friend of mine, David, sold all his Bitcoin at $20,000 because he was scared it would crash further, and in a few weeks, it bounced back to $30,000. Trade with logic, not fear, and make decisions based on solid financial analysis, not social media buzz.
You can use tools like RSI (Relative Strength Index) or MACD (Moving Average Convergence Divergence) to identify and leverage legitimate trends. With RSI, you can determine whether an asset is overbought or oversold; that way, you can tell where there are potential price reversals.
On the other hand, MACD enables you to figure out momentum shifts and notifies you of prevalent market opportunities, so you know when to buy or sell.
3. Choosing the Wrong Platform
Before you sell your Bitcoin, you should have done some research on the different platforms that support such transactions. Different platforms, from exchanges to p2p platforms, allow users to sell their crypto, including Bitcoin.
Before researching the best platforms, decide whether to sell Bitcoin for cash, other crypto, or gift cards. Knowing this will provide some direction on which platform to pick. For example, not all exchanges offer off-ramping services. You might need a platform like Prestmit.
If you want to sell Bitcoin for other crypto, an exchange or a peer-to-peer (P2P) platform will do. And even with this specificity, you’ll need to research the exchanges and p2p trading platforms that support the assets you want. Remember also to check the differences in transaction fees.
4. Lack of financial Advice
Do you have an investment broker or advisor? If you’re trading by yourself, seeking advice from a crypto investment advisor about the market and the best times to sell or to HODL is in your best interest.
Plunging into a sale without knowing all your options could lead to losses.
5. Loss of Passwords
One of the most common mistakes to avoid when selling Bitcoin or any other digital asset is forgetting or losing your passwords. Without your passwords, you cannot access your crypto, so you cannot proceed with any transaction you intend to do.
It’s imperative that you do not lose your keys if you use a decentralised wallet. Without your keys, you cannot prove ownership of a wallet and its contents. So, ensure you keep your passwords and keys safe. Write them somewhere if necessary.
6. Ignoring Transaction Costs
Bitcoin transaction fees vary across platforms and payment methods. For example, on a $10,000 sale, the exchange charge is 0.1%, which is around $10. The network fee (variable) is around ~$2–$5. Payment processor fee for users patronizing PayPal is 2%, which is $200. Totalling ~$215 or 2.15% of the transaction.
Understanding these costs in advance helps you price your sale appropriately. Compare platform fees and use tools like Blockchair to check current network fee trends.
7. Selling During a Bear Run
A bear market is one in which there is at least a 20% decrease in the market value of crypto like Bitcoin for a long time. This period is characterised by declining confidence in the market and pulling out of many investors.
Long-term investors will always advise people to “buy the dip” but never to sell in the dip. If the Bitcoin market is going through a bear run, you might be making a mistake trying to sell in the first place. Talk to your investment advisor if you’re still a beginner, as you may not know the market situation when you decide to sell.
8. Not Considering the Future
As iterated earlier, there are many reasons why people decide to sell their crypto or other digital assets. You may be making a mistake if your reason is not tied to an immediate need. Long-term investments generally yield more profits. So when you want to sell your Bitcoin, ask yourself if it can wait.
Although the price of Bitcoin is volatile, it appreciates over time. So, it’s wise to consider the future when deciding to sell. Even if you decide to trade based on an urgent need, you may want to HODL some and sell some.
Best Place To Sell Bitcoin — Prestmit
Prestmit stands tall among others in the Nigerian crypto industry, especially when wanting to sell Bitcoin speedily, securely, and profitably. Prestmit gives special preferences to its users, whether you are a starter or an experienced trader. The platform operates a 24/7 user support, and offers support for cash payments, bank transfers, gift cards, or even other crypto assets.
One of Prestmit’s compelling features is its Bitcoin Rate Calculator. This tool helps users calculate the amount they will receive from the sale they want to make. Prestmit wants to ensure you don’t get any surprises, but rather you are in control of your game.
How to Sell Bitcoin on Prestmit
- Visit Prestmit’s official website or go to the Google Play Store or Apple Store to download the Prestmit app.
- Register a new account on the Prestmit app or log in.
- Hit the “Buy & Sell Cryptocurrency” button, then select “Sell Cryptocurrency.”
- Amongst the crypto asset options, select “Sell Bitcoin.”
- Generate your BTC wallet address and follow the procedure to sell your Bitcoin.
- Follow the prompts to complete the transaction.
- You will receive payment immediately after the transaction is confirmed.
Frequently Asked Questions (FAQs) About Mistakes To Avoid When Selling Bitcoin
Is it safe to sell Bitcoin peer-to-peer (P2P)?
Yes, you just need to ensure you follow a stringent safety process. Also, ensure you conduct the peer-to-peer Bitcoin selling using a trusted platform with an escrow protection set up (like Paxful or Binance P2P). You’d want to verify the buyer’s profile, and do not make the mistake of releasing your Bitcoin when you haven’t received the payment.
What are Bitcoin’s Average Selling Fees?
Fees differ based on the platform you are using and your chosen payment method. Global exchange platforms like Binance or Coinbase charge users an average of 0.1% to 2% per transaction. Getting a lower fee from P2P platforms is possible, but there could be other hidden costs in payment method premiums. Just throw the fees guide before carrying out any transaction.
What affects the price of Bitcoin when selling?
Bitcoin’s rates are generally controlled by market sentiment, supply-demand dynamics, global economic situations, and government policies. However, on P2P platforms, bitcoin rates can change based on location, payment option, and buyer competition. For instance, trying to sell BTC via PayPal can attract price hype; on the other hand, you can deal at near-market rates when you use direct bank transfers. To get a favorable value, always track real-time prices across platforms.
How do I protect myself from Bitcoin scam buyers?
The best way to protect yourself against Bitcoin scam buyers is by using highly trusted platforms with escrow setups for your transactions. Also, stay clear of hasty buyers who are demanding off-platform payments. Also, avoid buyers who offer you unusually high rates. Ensure your wallet is 2FA enabled and always confirm all transaction details before sending any funds. You should check the buyer ratings and reviews before selling.
Conclusion
Whenever you choose to sell Bitcoin as a beginner or old-timer, avoid making any of the common mistakes listed above. Analyse your reasons and seek out a financial advisor. Consider the future and hold on to your Bitcoin if the market is in a bear run.
Should you decide to proceed with selling, you can sell Bitcoin on Prestmit for cash or gift cards. If you want other cryptos, try other exchanges or p2p trading platforms.
Try to stay informed about the goings-on in the crypto market by joining a crypto community online.
