In the crypto world, it is as important to make profits as it is to preserve and sell your profits without losing them. Now, when selling crypto, many Myanmar traders tend to make common mistakes, and I will explain how to avoid those mistakes to maximize your benefits.
Emotions and selling
âď¸When the market doesn't rise as expected or drops suddenly, panic selling due to fear can lead to significant mistakes.
Similarly, in a rapidly rising market, being left behind can lead to FOMO, resulting in hasty sales that diminish your potential profits.
Therefore, it is important to make decisions based on your original Plan without letting emotions take over.
đ Not having a Plan for selling
Many traders tend to focus on buying Crypto and often do not consider their Exit Strategy regarding when and how much to sell in advance.
For example, you should plan in advance how much percentage to sell at which price point and at what time.
Neglecting security
Security is also very important when selling Crypto.
đ¸Selling on unregulated, low-traffic, or poorly rated platforms can lead to the loss of all your holdings.
For example, scam platforms may lure you in with attractive prices and then deceive you.
đ¸Moreover, keeping all your coins in an exchange invites hacking risks. It's best to store them in a secure personal Wallet (Hardware Wallet) and transfer only what you need to the exchange when you're about to sell.
đ¸The most crucial aspect is that Crypto transactions are irreversible, so it is vital to double-check the Wallet Address you are sending to. A single mistake can result in losing all your holdings.
Failing to account for costs
Transaction Fees when selling Crypto can significantly increase during times of high network usage.
When calculating your profits, failing to account for these costs can lead to an incorrect profit estimation.
Additionally, since many countries have taxes on Crypto profits, it's essential to familiarize yourself with the regulations in your country.
Selling all holdings at once
Selling all your coins at once in a market that could still rise may diminish the profits you could have earned.
Experts suggest a Phased Exit Strategy, which involves selling in stages to retain some holdings for potential price increases.
Realistic methods to earn more profits
When selling altcoins, you can use these methods to avoid losing profits and minimize costs.
đ¸Convert
The Convert feature available in most exchanges is easy to use, and most advertise it as "Zero Fees." However, the prices they offer may include a "Spread" that can differ slightly from the market price. This means that when selling, you might sell for slightly less than the market price. Therefore, it may seem like there are no fees, but in reality, it can lead to higher costs compared to Spot Trading.
đ¸Spot Trading
This method involves direct selling in the market, and you must pay a specified Trading Fee (e.g., 0.1%). You can use advanced tools like Limit Orders, which allow you to precisely set the price at which you want to sell, helping to avoid Slippage (the difference between the expected price and the actual selling price) that can occur during rapid price changes.
đ¸Using Price Alerts
For those who can't monitor the market continuously, Price Alerts are extremely useful. When the coin you want to sell reaches a price you set, it will notify you via Email or Phone Notification. This way, you can sell on time according to your Exit Plan. Many exchanges have made this feature easily accessible in their Trade or Market sections.
đ¸Stop-Limit Order
This is a tool that helps automatically execute sales according to your established Plan. You need to set two prices: Stop Price and Limit Price. For example, let's say you want to sell a coin when it reaches $90 to stop your losses. If you set the Stop Price at $90 and the Limit Price at $89.50, the order becomes active when the price drops below $90, and it will sell at $89.50 or a better price. This helps prevent selling at an extremely low price when the market price drops suddenly.
Not adequately researching the market
đ The motto "Do Your Own Research" (DYOR) is crucial not only when buying but also when selling Crypto. Blindly following the advice of influencers on social media or unreliable news can lead to poor decision-making.
Ultimately, succeeding in the Crypto world requires not only making profits but also safely managing and selling those profits. By controlling emotions and consistently prioritizing security with a solid Plan, you can protect yourself from unnecessary losses and manage your investments effectively.
Disclaimer â ď¸
đ´ Investing in Crypto can be quite risky. Prices can fluctuate dramatically, so don't invest more than you can afford to lose. Additionally, it's best to thoroughly research before investing. This article is not investment advice. Crypto prices can change over time, and unexpected events can occur, so it's essential to be cautious when investing. Remember that every investment carries risk.
