When To Sell Crypto: 7 Best Strategies


Jacob Sansbury

Jacob Sansbury

Mon Dec 19 2022

6 min

When To Sell Crypto: 7 Best Strategies

And today, we’d like to talk about selling strategies.

Forecasting the right time to sell can be intimidating. You’ll want to know whether you’re in a bear market or bull market to guide investment strategies in any industry, from real estate to stocks to altcoins. However, crypto investors know it can be challenging to predict how cryptocurrency investment portfolios and digital assets will move.

This market is more volatile than its stock market counterpart. Significant fluctuations happen quickly, whether values shoot up like fireworks or sink like a stone.

Look at the recent developments with FTX, a seemingly stable exchange and long-term investment like Binance that ended up running into massive liquidity issues and tanking. Hard.

Still, your personal finances and your money don’t have to be at risk when you decide to buy Bitcoin (BTC) or Ethereum (ETH). Here at Pluto, we offer automated trading strategies to help you enjoy a profitable, rich experience in cryptocurrency.

But perhaps you’re just looking for some general information to start with. And that’s OK by us, too. Look at these helpful tips before making initial investments. Feel free to share them with your friends and family. Whether you’re the Warren Buffet of crypto profits or a Robinhood newbie, these strategies may prove helpful.

When Should You Sell Crypto?

Keep reading for seven of the best times when you should part ways with your cryptocurrency assets. If you have questions while reading this article, please shoot us a quick message. We will happily and quickly respond.

Now, on with the show:

1. When You’re Up

Remember, the market is volatile. You may be at the summit with your crypto, enjoying the glory — suddenly, you’re in freefall.

We’re not saying that will happen with what you have now. It could continue to grow. Only you can decide what kind of chance you ultimately want to take.

2. When the Crypto Stagnates

Crypto teams should constantly be pumping out updates to keep investors happy. When radio silence hits, the team is likely not meeting development goals.

Stagnation is never a good sign.

And that means you should get out.

3. Negative Press

We recommend keeping an eye on the news cycle. Investors typically get spooked if a particular project gets pummeled with bad news. This can upend a project.

(Of course, the project could also come out of it smelling like roses. It’s impossible to predict.)

But bad news may indicate it’s time to jump ship.

4. If You Need To Reallocate Funds

Sometimes you need to move financial resources from one location to another. Maybe there’s a separate crypto project that’s caught your fancy. You begin to do more research, and soon this flirtation is on the verge of becoming a serious affair. Sell what’s old and dive into what’s new.

Make sure you’ve done your homework and talked to the right people to ensure it’s a sound decision. We are happy to answer any questions you may have. No obligations, just information.

5. You’ve Lost Faith in the Investment

It looked good on paper (or, more likely, on a screen).

But in the end, it’s just not panning out. Perhaps it’s just not growing the way you expect. Or the management team has failed to impress you.

These things happen. Trust your gut.

6. Better Opportunities Have Emerged

If there’s one thing to be said about the cryptocurrency market, it’s that things change. And they change fast.

For example, everyone realized in 2011 that Litecoin was much better than Bitcoin related to transaction processing.

But then what happened? It certainly didn’t stay hot for too long. Other cryptocurrencies emerged, which made Litecoin more of an antique.

Always keep an eye out for better opportunities.

7. Predetermined Limit Orders

A “limit order” is an order to buy or sell a cryptocurrency asset at a predetermined price.

The problem is that they’re not guaranteed to execute. Why? They’ll only trigger if the price reaches where you’ve set the limit.

And this can be a problem for you — best to part ways with it.

When Shouldn’t You Sell Crypto?

1. You’re Unnecessarily Panicking

When the price drops, panic can set in. And when that happens, it’s easy to take rash actions.

But don’t do this. Take a minute and look at the big picture. Does this asset still have long-term value? If so, don’t sell.

Talk to an expert. Share your long-term goals and the details of the asset. Make your decision after having that discussion.

Like in life, rash action in the heat of momentary panic usually doesn't pay off in the end.

2. You Still Have Confidence

Tacking onto the point above, trust your instinct. A bad day is just a bad day, and things could turn around. If you have confidence in the holding and have a logical reason to have it, don’t let a dip lead you to miss out on later potential profit.

3. You Have a Long-Term Strategy

A long-term strategy is bound to have its high and low points. Don’t let low points make you forget about your long-term strategy, which you will have worked out with a professional. Speaking of strategies, ask us about our automated strategies.

What Are Some Crypto Trading Strategies?

1. Day Trading

Day trading is when you buy and sell on the same day. (Thus, “day” trading. Get it?) This is where you try to gauge how something is moving in a particular way to make a profit. To be successful at this, you will need to use technical indicators.

2. Arbitrage

This is when you purchase crypto in one market and sell it in another. The difference between the prices is called the “spread.” (A little bit different from football.)

If you want to give this a whirl, you must open accounts on exchanges that illustrate a significant difference between the prices.

3. Balancing Your Portfolio

We’ve said it before, and we’ll repeat it: The cryptocurrency market is more volatile than the stock market.

That’s why we recommend building a balanced portfolio with various cryptocurrencies. This balance will help stave off some of that volatility.

4. Range Trading

If you’re in the cryptocurrency market, you will likely need the advice and guidance of experienced analysts. These analysts will provide you with daily levels of support and resistance.

Support indicates the level at which demand for a given stock is high enough to keep the price from falling below acceptable levels. Resistance, on the other hand, is the level at which supply is high enough to prevent the stock’s price from rising.

5. Dollar-Cost Averaging

Have you ever tried to cross a busy highway? Timing the cars isn’t so easy, is it?

The same can be true of finding the ideal time to jump in and hop out of assets within the crypto market. You can use high-frequency trading (like we just discussed), but nothing will ever be perfect.

In a nutshell, this is when you invest a certain amount at regular intervals. You can use the same strategy for selling. But again, this is where you need to use the expertise of a trusted professional and read technical charts. We can help with that.

6. Scalping

Crypto scalping is when you dial up your trading volume to make some profit. This takes expertise, where you must look at the asset, volumes, and previous trends. After that, choose when you’re going to buy and when you’re going to sell within a day.

7. High-Frequency Trading (HFT)

This is where trading bots and algorithms can tell you when to dip in and pop out of a particular crypto asset.

Of course, it’s not like anybody can just whip up a bot for this purpose. (There’s no simple app for that!) This is for folks with a firm grasp of math, science, and the market — like your friendly Pluto team.

What Should You Consider Before Selling Crypto?

Why Are You Selling?

Always look at your financial goals. Not everyone has the same ones, so don’t look over your shoulder at what your co-worker, neighbor, or family member is doing in the crypto world if they want to achieve something different from you.

Make sure the reason you’re selling is strategic, not based on emotions (like short-sighted panic), and aligns with your personal goals.

How Much Will You Sell?

Don’t be tempted to sell everything you’re holding. If it’s increased in value, it’s worth keeping your hands on it.

Again, think strategically. Letting go of some may help you rebalance your portfolio.

What Are the Tax Consequences?

Be careful there. Did you know that if the cryptocurrency has increased in value, you'll have to pony up crypto taxes? It will be taxed as long-term gains if you’ve held the asset for more than 365 days (one year).

The Bottom Line

At Pluto, we help you develop a crypto strategy using your rules. Talk to us about how we can set up the right strategy for you. Contacting us is extraordinarily easy, and we’re pretty responsive. But before you do, we want to save you as much time and effort as possible. Perhaps you have a question to which the answer has already been provided. We urge you to first look at ourFAQ page.

But no matter what, we’re here to help. Learn more about buying and selling crypto today with Pluto.


Volatility: Meaning In Finance and How it Works with Stocks | Investopedia

3 steps for beginners to start day trading crypto | Business Insider

What is scalping in crypto, and how does scalp trading work? | Coin Telegraph