How do you take profits in crypto?
You probably learned how to hit the buy and sell button, and a bit of TA/FA. But what's the best way to take profits?
It’s a lot easier to trade in a bull market. Everyone thinks they’re a genius. Poorly timed trades can even turn profitable by just waiting a little. However, when the cookies crumble they need a shoulder to cry on.
As long as trading is concerned, you should never leave out a mentor until you find your feet through experience.
Even at that, you must belong to quality trading communities so you learn through what others are doing.
That’s by the way. I want to share with you 3 profit-taking strategies in crypto
-Stack ALTs
-Accumulate USDT
-Stack sats (BTC)
All 3 have their implications and will be seen as best - depending on what your personal trading goals are.
Here we go:
Stacking Alts
If you like this option, you must first consider the momentum of that alt. A good example is BNB (Binance coin). The crypto community agrees that BNB has massive potential which is beginning to reflect a lot in the price lately due to the value of the Smartchain network.
If you’re a believer in such token, you could sell some of your trade profits for BNB directly – thereby increasing your BNB stack over time. Same can be done for Ethereum.
Accumulate USDT
If you think the coin you’re trading doesn’t have much long-term potential, you could sell profits for USDT (at least stablecoins are not volatile). You can sleep safely knowing the value of your money will remain the same regardless of market conditions.
Profits stored in stablecoins can be used to buy the dips when the market goes against you (putting all other market variables into perspective).
Stack sats (BTC)
This one seems to be the most common among traders as there’s need to increase their BTC quantity (1 BTC will always = 1 BTC). This simply involves selling your ALT/BTC paired trade profits for BTC.
If you plan to stack sats, you have to be willing to deal with BTC price volatility as the dollar value could increase/ reduce when you want to convert to fiat. For example, your $100 profit from a trade may not be worth $100 after a few days if you leave profit in BTC (could be more or less depending on BTC price).
Stacking sats (BTC) is best when BTC is in accumulation phase and alts are thriving. That way you could use the money to trade ALTS, make quick profits, and increase your BTC quantity before BTC begins to move upwards.
Now you know different ways you can take profit trading crypto. Whatever strategy you choose, make sure you’re protecting your profits and spending some of it on tangible stuff.
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