How and when should you withdraw your cryptocurrency earnings?
There is no magic formula for timing the market, but there are some strategies you can use to maximize your gains before withdrawing your cryptocurrency gains.
When it comes to long-term investing, long-term holding and cost-average investment strategies are safe bets.
Find an investment strategy that fits your portfolio goals, whether it’s selling a small portion at a time or keeping your gains in stablecoins. Just don’t get caught up in Fear of Missing Opportunity (FOMO) or Fear, Hesitancy and Doubt (FUD).
In this article, we’ll take a deep dive into the different factors to consider when selling cryptocurrencies, as well as the different ways you can maximize your cryptocurrency gains after the sale.
Want to withdraw your cryptocurrency earnings, but not sure when or how? Don’t worry, we can meet your needs.
As the cryptocurrency market matures, even seasoned traders need to develop a strategy to know the best times to buy and sell.
While there is no perfect method and formula for timing the market, there are various techniques and strategies that can be considered and employed during the investing process. Read on to learn more about the different factors to consider when selling cryptocurrencies and how to maximize your gains after the sale.
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When should you withdraw your cryptocurrency earnings?
A good start is very important! There is no sure-fire formula for timing the market, which is why we always recommend long-term holding and average-cost investment strategies for long-term investing. If you want to sell a cryptocurrency to lock in again, do your due diligence to understand the long-term value of the token. If you particularly believe in the coin, consider holding it long-term.
Also, we recommend that you focus on the best yield. After all, we can’t time the market perfectly, so we don’t need to hit a home run every time to significantly expand our portfolio.
Instead, set out to extract some of your gains in 30% increments. Instead of waiting for 50% or 100% incremental gains, focus on smaller increases, which will ensure you don’t get caught up in frustrating 20% to 40% adjustments that can hit rapid change cryptocurrency market.
Another benefit of focusing on the best yields is that you can build a diversified yield portfolio by moving those yields to other tokens that are just starting to run in price. By strictly following this approach, solid returns can lead to huge overall gains for your portfolio.
Finally, we recommend selling only when there are other investment opportunities that you already DYOR and want to put your money into. It’s important not to get caught up in fear of missing out (FOMO) or fear, hesitation and doubt (FUD).
How to withdraw and maximize cryptocurrency earnings?
Now you have a basic understanding of when you should withdraw your cryptocurrency earnings. Let’s move on to how to maximize your cryptocurrency earnings. Below, we discuss four strategies you can consider following.
1. Sell a small portion at a time
To withdraw and maximize your gains, sell 5-10% at a time, depending on your holdings of that particular cryptocurrency. If the cryptocurrency has gained more than 30% since you bought it, consider selling a small portion each week.
Due to the high volatility of the cryptocurrency market, it is recommended to sell orders in batches according to the market environment. It is not recommended to sell all of your cryptocurrency holdings at once (unless the target price has been reached and you can sell it all), as this may miss out on potential future gains, or you may still want to keep some of your cryptocurrency for the long term hold.
2. Keep earnings in stablecoins
Not sure what to do after withdrawing your cryptocurrency earnings? Or not sure if the cryptocurrency has reached its target price and you want to invest in something else? Please consider keeping them in stablecoins. In this way, they can earn interest by providing liquidity in decentralized finance projects. In addition, income can also be allocated to stablecoins to stay in the cryptocurrency market, and stablecoins will not be affected by the changing market environment.
Also, you can easily use the stablecoin to buy other coins as there is no need to wait days to transfer fiat.
3. Sell and buy the dip
You can also consider strategic trading methods to maximize returns on cryptocurrencies that you believe have long-term value. For example, when a particular cryptocurrency is experiencing upside volatility, consider selling some of it and using the proceeds to buy more when the price falls.
4. Stake and earn interest
You can also maximize your earnings by staking your profits on Binance Money or choosing other investment products on Binance, such as staking.
Earn income by investing in new tokens
A strategy used by some seasoned traders is to invest in new tokens or innovative ICOs (Initial Coin Offerings) to achieve greater returns. Traders will first keep the bulk of their portfolios in major coins such as Bitcoin (BTC), Ether (ETH) or Litecoin (LTC). When they make a profit on their initial investment in the main token, they then use a portion of the proceeds to buy innovative tokens.
For example, a trader might sell 1 bitcoin for 1.5 bitcoin and invest a small percentage of the proceeds (say 0.2 bitcoin) in a new token or ICO, which they have researched and believe will bring good returns.
This strategy may be suitable for traders who want to build a portfolio with their principal, but want to invest only a small portion of their portfolio in new and innovative tokens that they see as having great potential.
Want to save yourself the extra work of manually buying new tokens every time? Check out the scheduled vote feature on Binance. It only takes five steps to set it up, and it can easily be done in under five minutes.
Start your cryptocurrency investment journey today
Build your cryptocurrency portfolio with Binance today. To learn more about the different types of crypto tokens on the market, DYOR and choose a token you feel confident adding to your portfolio.
On Binance, you can buy cryptocurrencies in two hassle-free and low-cost ways:
Step 1: Account Funding
Complete fiat currency recharge via digital wallet transfer or bank transfer on Binance. Be sure to check out the fiat channels where you can buy your favorite currency. For details, please refer to the detailed guide on How to Recharge US Dollars via SWIFT
Alternative: Convert fiat currency to BUSD or USDT to trade more token types.
Step 2: Buy cryptocurrency
Tokens are purchased through user wallets or directly with a credit/debit card. Linking your debit or credit card is one of the easiest ways to buy Bitcoin and 200+ cryptocurrencies on Binance.
To sum up, the most important thing about when to withdraw cryptocurrencies for yield is what you want to achieve.
Neither trading strategy nor activity is a winning formula, and you must DYOR before any trading or investment activity in the volatile and speculative cryptocurrency market.
Want to know more about long-term investing? Learn more about expanding your cryptocurrency portfolio with DCA strategies such as scheduled investments.