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When To Take Your Crypto Profits

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People are always debating over when to realize your gains and take your crypto profits. There are many strategies and things that factor into this. Let’s dive into all that now!

There are many things to be considered when investing but for me, the main focus for when to take out profits is centered around risk. By that, I really mean risk aversion or risk tolerance. How much risk can you deal with emotionally and financially? The answers to this should guide most of your profit-taking process.

The three main things that make up your risk are the cadence of your trading and profit-taking, your profit taking strategy, and the coins you are investing in and their fundamentals or tokenomics.

Trading Cadence: This is how often you are trading. So for example, if you wanted to trade every day and try to take your profits at the end of each day as a day trader, you are ready for the riskiest way to invest bordering on gambling. Holding is very safe if you’re holding a really good cryptocurrency while it would be very bad for a bad cryptocurrency. The safest way to take your profits is to have a strategy in place and follow it unemotionally.

Your Profit Taking Strategy: This is when you will take your profits. Many people set specific price points or multipliers, like selling Bitcoin once it hits 5x the price you bought it for as an example. Some people just take profits from small wins and lock it all in, whereas holders may be treating more like gold. For me, the safest way to do this is to wait until my investment has 2xed and sold off my original investment so that the rest of my investment is 100% profit eliminating any possibility for loss. Then after this, you can incrementally sell off portions of your holdings at different price multipliers like 2x, 5x, 10x, etc. This way you ensure you can’t lose money and that you will not lose out on big gains in the future. While this doesn’t give you as much reward, it eliminates the most risk. You still have to invest in coins that will be able to go 2x for this to possible, so now let’s look at fundamentals.

The Coins You Invest In: Even if you don’t understand all the different consensus models, you should have the basic grasp of whether or not the token you’re investing in is: scarce, inflationary or deflationary, and a good store of value. You can have a million things to consider like uses cases etc., but I want to keep this simple. When you know what type of cryptocurrency you to invest in you still have to consider its trading volume and how many exchanges it's listed on and if they’re reputable. The last thing you want to do is buy a coin no one is trading and then no one will buy it from you later on. If this is too complex, just stick to the top 50-100 coins, they’re much safer. However, you should always do research and know what you’re holding. My biggest holdings are ETH and BTC.

Does that cover most of it? There are probably a million other things you could consider, but this is the introductory take on when you should take crypto profits.

Let me know if you think there’s something I missed or could have included. When do you take your profits? Has this changed your approach to crypto investing? Feel free to share your investment strategies with everyone and remember this is not financial advice. Also, don’t forget to like, share, and subscribe!

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Comments

christmas is the best time to sell or buy cryptos coz ppl and all world is going for crazy potapo sales. but Im only potato shadow

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1 week ago

Thanks for the information sir good morning

$ 0.00
1 week ago

Hey good article. That's always the question of the day.

Is 2x good enough? And if you sell at 2x and it goes to 10x how will you feel? And most importantly will you Fomo back in at 10x and lose all profits + more?

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1 week ago

This article very important dear. This article have many information. Very helpful Article thank you dear for sharing..

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1 week ago

great post! thanks for sharing!

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1 week ago

Great article, dear friend. I havenot any good idea about this. I am glad to see that you have gathered more information about crypto currency in a single article. It’s very helpful for us. Thank you so much for sharing such an informative article😍

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1 week ago

How many days the cryto is up? Give me suggestions sir.

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1 week ago

My biggest holdings are ETH and BTC.

Same in here. Crypto bull-run will always be initiated by the pioneers ^^

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1 week ago

Yeah absolutely

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User's avatar scottcbusiness
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1 week ago

Thank you for the information you've share. That's a helpful one 😁

$ 0.00
1 week ago

Thank you so much for this, this is really helpful. To Invest in crypto one really need to understand the system so well and you have given a clear explanation. But I have a little question, can a token price ever go down below the cost price?

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1 week ago

Thanks for the information you share! 😊

Sir 😻😻

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1 week ago

Nice!

$ 0.00
1 week ago

Wonderful article

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1 week ago
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1 week ago

sir i still believe in HODL irrespective of the bullrun hope i am safe?

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1 week ago

This is helpful sir! Thanks for the information you share! 😊

$ 0.00
1 week ago

Hi can you be my sponsor? Have a nice day.

$ 0.00
1 week ago

Nice!

$ 0.00
1 week ago

Dear Sir, can you suggest me any good Crypto valuation model. I searched at Google and asked at read.cash but I don't get any reliable valuation model. I believe without getting right valuation is just hitting blindly. I know any valuation model can't be 100% accurate but it definitely gives an idea about price band.

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1 week ago

I think holding is quite one of the very best strategy

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1 week ago

More like forex trading

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1 week ago

I needed this article

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1 week ago

I have been getting good luck buying altcoins worth $0.01 or less and waiting for them to rise, then trading for something better. I'm still new to this though and don't want to risk too much.

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1 week ago

Everything is risky in life

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1 week ago

Really good article, learned a lot for someone who is still new to cryto-currency (Mainly BCH & BTC)

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User's avatar HAZ
1 week ago

Wow its an informative article coz some platform may scam you so i think its the best startegy for me😊

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1 week ago

I got scammed twice recently..

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1 week ago

Thanks for sharing. This will help alot

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1 week ago

And how question I'll love to ask?

We have a lot of scam platform out there, how can we trade and also how can we know legit platform to trade in to start earning daily...

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1 week ago

Trade on reputable exchanges and hold your crypto in a wallet only you control

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User's avatar scottcbusiness
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1 week ago

Okay thanks sir, but which is a reputable exchange?

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1 week ago

Wow, this is a very informative article I'll have to pin this down for have been looking for how to withdraw coin without it affecting you on the long run...

Thanks for this Eye-opener

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1 week ago

Helpful article

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1 week ago

Really helpful information.... Thanks for sharing with us...I think it is helpful for cryptolover people

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1 week ago

Thanks for this it is good to know more before investing and take risk

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1 week ago

Thank you for sharing this. I am still looking for some confidence and risk before investing. Hahhaha am afraid

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1 week ago

I'm on learning more on how to trade and invest well in crypto... I'm a newbie in this field.. thanks for the info...

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1 week ago

I sink I dont sell My crypto porfolio, I give this oportunity my children 👍 Nice post 😋

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1 week ago