5 Ways to Maximize Profits When Selling Bitcoin

In 2021, during Bitcoin’s bull run, I sold some of my holdings when BTC hit $50,000. Excited about my profits, I rushed to sell on a popular crypto exchange only to realise later that high withdrawal fees and market slippage had eaten into my earnings. Worse still, the price surged almost 10% the next day. That experience taught me that maximising profits is beyond selling at the right price; it’s also about choosing the right strategy, timing, and platform.

As a crypto trader or investor, you’ll agree that profit-making is the primary goal. Interestingly, you can maximise profits in several ways when Bitcoin (BTC) prices fluctuate. They include: 

1. Lending 
2. Selling during a bull run
3. Dividend earnings 
4. Swing and arbitrage trading 
5. Having realistic profit targets

Are you a long-term holder looking to cash out big from BTC investments or a short-term trader capitalising on market movements? The key to maximising your profits is understanding and implementing the right strategies. This article explores five effective ways to maximise your profits when selling Bitcoin. 

5 Ways to Maximize Profits When Selling Bitcoin

1. Lending

You can profit more by lending your BTC assets on supported decentralized finance (DeFi) platforms. Many platforms allow you to lend BTC to other users in exchange for interest payments. This can help you earn additional income while you wait for a more favourable selling price. 

However, using reputable lending platforms is important to reduce the risk of losing your assets. You can also convert BTC into Wrapped Bitcoin (WBTC) and stake it to earn rewards. This strategy allows you to grow your BTC holdings while waiting for the best time to sell.

2. Selling during a bull run

One of the best times to sell Bitcoin is during a bull run — a market phase where prices rise due to increased demand. Also known as a bull market, Bitcoin’s price tends to climb rapidly during this season, offering a prime opportunity to sell at a high price.

3. Dividend earnings

Like stock dividends, you can invest in Bitcoin and get a fixed interest periodically. To earn periodic interest, you’ll need to buy BTC, hold it for a set period and then you can sell when there is a peak in the market. This requires thorough research because you want to be sure you’re making a good decision when investing in its dividends.

4. Engage in Swing and Arbitrage Trading 

Instead of selling Bitcoin outright, you can explore different trading strategies to maximise profits. Some of these strategies are swing and arbitrage trading. Swing trading involves selling your BTC when prices rise and buying it back when they dip. Swing traders typically hold BTC for a few days or weeks before trading.

On the other hand, if you notice BTC selling at different prices across exchanges, you can buy it from a platform with a lower price and sell it on one with a higher price. This is known as arbitrage trading.

While both strategies can help you make more money from Bitcoin than simply holding and selling, both require risk management knowledge. 

5. Set Realistic Profit Targets

Greed can be your worst enemy as a crypto trader. Many Bitcoin sellers hold out for unrealistic price spikes and miss good selling opportunities. Instead of waiting for an unlikely surge, set realistic profit targets and stick to them.

A good approach is to decide in advance how much profit you want to make before selling. Additionally, always use stop-loss and take-profit orders to automate your trades and lock in gains. Avoid emotional decision-making, such as panic selling during dips or holding too long out of greed.

Frequently Asked Questions (FAQs) About Ways to Maximize Profits When Selling Bitcoin

What months are Bitcoin most profitable?

To determine the month Bitcoin is most profitable, it is necessary to study Bitcoin prices each month over the past few years. Bitcoin is profitable in April, May, October, and November. This was determined by looking at the average profitability of Bitcoin in those months over the past 12 years.

Is cashing out Bitcoin taxable?

Yes, cashing out Bitcoin is taxable. Your Bitcoin gains’ tax rates are the same as capital gains taxes. The only thing is that you’re being taxed based on your geographical location. 

In Nigeria, according to Section 3(a) of the Capital Gains Tax Act, digital assets, including cryptocurrencies, non-fungible tokens, and other tokenised assets, will have a 10% tax on profits. Some African countries have also profited from crypto, which is subject to taxes. Examples include South Africa and Kenya.  

How long does it take to get money after selling Bitcoin?

This typically depends on the method used to sell your Bitcoin. With the Breet app, you can sell your Bitcoin at good exchange rates and have your money in your bank account within minutes. Breet is accessible to crypto traders/investors in Nigeria and Ghana. 

What are the safest ways to store proceeds from Bitcoin sales?

To secure your funds after selling Bitcoin, consider the following options:

• Cold and Non-custodial Wallet Storage—This entails converting your proceeds into a stablecoin of your choice and transferring them to a Non-custodial or hardware wallet for long-term security and full control.

• Bank Accounts – You can also withdraw your profits in fiat to your bank account.

• Stablecoins – You can equally hold your profits from bitcoin selling in trusted stablecoins like USDT, USDC, or DAI. Holding your profits in stablecoins helps you to be immune to market volatility. 

How do I know which crypto exchange or platform is best for my location? 

The crypto exchanges or platforms that are best for your location are those that meet certain criteria, such as obtaining operational licenses in your country and supporting your local currency. Platforms that charge low fees and are user-friendly with strong security systems are also good to use.