Main Takeaways:
- There is no magic formula to time the market but there are strategies you can use to optimize your gains before you cash out your crypto gains.
- When it comes to long-term investments, HODLing and DCAing are both reasonable strategies.
- Find strategies that fit your investment portfolio goals whether that be selling a small percentage at a time or keeping your profits in stablecoins. Just don’t let FOMO or FUD get you.
- In this article, we dive into the different factors to consider when selling your crypto and the different ways you can optimize your crypto gains after selling.
Thinking of taking out your crypto profit but not sure when or how to do it? No need to worry. We've got you covered.
With the crypto market maturing, even experienced traders need to have a strategy in place to know the best time to buy and the best time to sell.
While there's no perfect method and formula to timing the market, there are various tips and strategies that you can consider and adopt in your investment journey. Keep on reading to learn more about the different factors you should consider when selling your crypto and how you can optimize your gains after selling.
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When Should You Take Out Your Crypto Profits?
First things first, there's no sure-win formula to time the market, and that's why combining HODLing with a DCA investment strategy is a rasonable approach to long-term investing. If you are looking to sell your crypto to lock in profits, do your own due diligence to understand the long-term value of the coin. Sometimes, especially if it's a coin you believe in, you could consider HODLing.
Moreover, we recommend focusing on optimal gains. After all, it's impossible to time the market perfectly, and we don't need to hit a home run each time to grow our portfolio.
Instead, start taking a portion of your gains in the 30% incremental range. Instead of waiting for a 50% or 100% incremental gain, focusing on a smaller increase will make it more likely that you won't be caught in a demoralizing 20% to 40% correction that can hit the rapidly shifting crypto market.
Another benefit of focusing on optimal gains is that you can compound those gains by shifting those profits into other coins that are just starting a price run. The compounding gains can lead to large overall earnings in your portfolio if you follow this disciplined approach.
Lastly, it is reasonable to sell when you have other investment opportunities that you've DYOR on and would like to put your money in. It’s important not to fall prey to FOMO (fear of missing out) or FUD (fear, uncertainty, and doubt).
Read more about Crypto Profits
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