While people are buying crypto for various reasons including as an investment and to be able to enjoy seamless cross-border transactions, they may also need to cash them out at some point. Sometimes, people want to sell crypto instantly, and it is crucial to know how to go about it and some mistakes to avoid.
Why sell Bitcoin instantly
So, why do some people want to sell their BTC instantly? Here are some of the top reasons:
- To get immediate liquidity – some people may want quick access to cash to settle transactions such as paying medical bills or buying items where Bitcoin is not accepted, etc.
- To lock in profits- after a favorable shift in Bitcoin prices, some investors may sell Bitcoin instantly to lock in the gains achieved so far.
- To manage risk exposure – you can sell your Bitcoin instantly to reduce exposure from investing lots of your wealth in a highly speculative asset
- To exit the market- some people sell BTC instantly as a part of an exit strategy after changes in their preferences, investment objectives, and other changes.
Mistakes to avoid when selling Bitcoin instantly
As you sell Bitcoin instantly, you need to steer away from some mistakes, including:
Not selecting the right platform
It is crucial to know that not all platforms –crypto exchanges, P2P exchanges, and others – offer instant crypto cash-out options. Also, some platforms are not favorable and you may not achieve the results you may be looking for. Thus, it would be best first to research the various platforms before settling on any for instant BTC cash out.
Ignoring the market conditions
Before you initiate the process to sell crypto instantly, it would be best to understand the prevailing market conditions. This is because the prices of cryptocurrencies are highly volatile and not being aware of the prevailing market trends can lead to selling at sub-optimal prices. You should be fully aware of price changes, trading volumes, and the general market sentiment so you can make informed decisions.
Overlooking transaction fees
Selling crypto usually attracts some charges and you may even be charged at different rates when you sell crypto instantly. Thus, you should find out the transaction fee structure before you start the process so you can make better choices because the transaction fees vary from one platform to another. When you have a good understanding of the fees, you can go for the option that maximizes your returns.
Not considering security best practices
When you’re selling crypto instantly, it involves transferring your virtual assets from your wallet to the exchange’s wallet and this introduces some security risks. It is crucial to ensure the platform you want to use and their wallet have the necessary security measures in place. Look for crypto encryption protocols, two-factor authentication (2FA), etc. These measures are necessary to protect against unauthorized access to your account and other cyber threats.
Making decisions in a rush
Although you want to sell crypto instantly, you cannot afford not to check several factors. You should not rush to make decisions or else you will regret later having acted based on a fear of missing out.
Conclusion
Whether you sell crypto instantly or do it the conventional way and take your time, you need to avoid any mistakes that can risk your assets or result in reduced proceeds and profits. These mistakes include ignoring market conditions, choosing the wrong platform, and not considering the transaction fees, to mention but a few.
