Unless you just landed on this planet, you must have already heard about Bitcoin. If not, you just learned about it. Either way, Bitcoin is the buzzword in the crypto world. It is the most popular and most successful cryptocurrency so far. Currently, the Bitcoin user base exceeds 106 million. As a result, Immediate Edge is a reliable exchange that investors can trade Bitcoin using trading bots.

One of the reasons for such popularity of Bitcoin is its ability to make money and create wealth. Bitcoin is a unique digital currency and asset. With no centralized control and no third parties, it has become the ideal choice for many investors wishing to make money and avoid the unnecessary interruptions of government, banks, and other entities.

However, like all cryptocurrencies, Bitcoin is highly volatile. The price of Bitcoin keeps changing unpredictably. It can shoot up or fall at any moment and with different margins. This volatility makes some investors concerned about the risk of investing in Bitcoin. Yet, in reality, it is this volatility that makes it a worthy investment option.

Bitcoin Price Volatility

One of the most important things to know about when to sell Bitcoin is its price volatility. Towards the end of last year, Bitcoin sold at $68,000. And this was an all-time high. However, the price started plummeting in the first few months of this year until it reached $20,000. Such price changes should not worry you.

When you understand that Bitcoin is volatile, then you won't go into panic selling. News that the price has suddenly dropped should not make you go into panic mode. In fact, as a good Bitcoin investor, you should probably wait, knowing too well that the price is likely to surge again. When it rises to a level you are comfortable with, you can sell.

Buy Low, Sell High

Another vital thing to know when trading Bitcoin is the buy low, sell a high concept. And this is a familiar concept that applies to all cryptocurrencies, particularly Bitcoin. As the name suggests, you should buy Bitcoin when the price is low and sell when the price is high.

It follows the conventional wisdom of investing. To make a profit, you need to sell it at a higher price than you bought it. Therefore, if you follow this concept, you should only sell Bitcoin when the price is high. And this will ensure that you make a profit from your investment. If you sell when the price is lower than the buying price, then you will be making a loss.

Better Investment Alternatives

Sometimes, you may decide to sell your Bitcoin because you have discovered some better investment alternative. Bitcoin is a high-risk investment. Considering the risk level, you may be worried about your investment's future. While this should not be the only consideration, you could sell Bitcoins and invest elsewhere.

For example, you may come across an investment opportunity that is less risky than Bitcoin and with some good returns. The digital Yuan could be a viable option considering that the government controls and regulates it. Instead of speculating on Bitcoin's price shifts, you can sell part or all of your Bitcoins and invest there. At least, you will be more confident that your investment is more secure.

Don't Get Attached

Finally, Bitcoin can be beautiful, and many people get too passionate about it. And this can be a risky thing. Getting so passionate about Bitcoin may cloud your mind and vision that you will not realize when it's time to move on. As an investor, remain rational about Bitcoin and when you know that Bitcoin is no longer in line with your long-term plans, then sell.

Take Away

The standard strategy is to buy low and sell high; you should understand it when trading Bitcoin. But this is not the only formula. Other things should also be part of your decision criteria.