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?
Bitcoin is a cut above other coins in the cryptocurrency world. So why would anyone want to sell Bitcoin? Well, Bitcoin is, first and foremost, a store of value. And value is meant to be exchanged. So, Bitcoin holders can decide to sell Bitcoin for different reasons.
- To escape a bear market
- To sort out personal problems
- To acquire other digital assets
- For other investment opportunities
8 Mistakes to Avoid When Selling Bitcoin
These are the common mistakes people make when selling Bitcoin:
- Lack of research
- Selling due to fear or FOMO
- Choosing the wrong platform
- Lack of financial advice
- Loss of passwords
- Ignoring transaction costs
- Selling during a bear run
- Not considering the future
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
Newbie crypto investors are more prone to emotional actions regarding their holdings. Because they lack in-depth knowledge of the crypto market and dynamics, they quickly fall prey to fear or FOMO. If you want to sell your Bitcoin, ensure you’re not selling because you think you’ll gain more or lose all your holdings in a difficult market situation. Peers and other crypto investors may try to convince you that another asset is the next best thing. But there are better reasons to sell your Bitcoin.
Research and advice from financial experts provide a better foundation for selling than mere speculation.
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 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
Crypto transactions require transaction fees. Users pay these fees to the exchange or platform on which they transact. Whether it’s buying or selling, Bitcoin transactions generally cost more. So before selling your Bitcoin, check the transaction costs to know the actual amount you can sell and what you will need to cover the transaction cost. Platforms like Coinbase and Kraken have different fees. Some may charge lower than others. Again, this points back to doing your research.
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.
Where Can You Sell Bitcoin?
Crypto trades are mostly done on exchanges and p2p platforms. There is a plethora of exchanges to choose from. The exchange option is better suited for multiple asset options and ease. Some exchanges also allow p2p trading. But platforms with a strictly peer-to-peer trading system allow users to choose who they trade with. The caveat is that you cannot make a user sell a particular asset to you. You find someone who has what you want and wants what you have. Some trading platforms also act as crypto off-ramps. For example, Prestmit allows users to sell their Bitcoin for fiat currency (Nigerian Naira or Ghanaian Cedis). As stated earlier, there’s also the option of selling your Bitcoin for gift cards. It depends on what you want in exchange for your Bitcoin.
How to Sell Bitcoin on Prestmit
To sell your Bitcoin on Prestmit, you must decide if you want to receive payment in fiat currency or gift cards. Assuming you want to sell your Bitcoin for cash, here are the steps to getting it done in minutes.
- Register for an account or sign in if you’re an already existing user.
- Generate a Bitcoin wallet. To do this, go to your dashboard on the mobile app. Select Buy/Sell cryptocurrency. Then select Sell Crypto. From the menu, choose BTC and click Generate Wallet.
- Send the amount of Bitcoin you want to sell to your newly generated Prestmit Bitcoin address.
- Wait for three confirmations then you’ll receive the amount in your naira or cedis account.
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.