01/13/24 ~ Crypto World

If you want to profit in the crypto market, the most important thing to learn is when to buy and when to sell. In this text, you’ll find some help on that

An old man with a gray beard, a Bitcoin trader is sitting at the desk full of Bitcoins

Second Part of the Article

Introduction

Greetings, dear readers and loyal followers!

As promised, here’s the second part of the article where we’ll delve into a topic as important as the first part. Specifically, when to sell your crypto and, more importantly, when to cash in your profits and withdraw money from exchanges.

Someone who is new to the crypto world or not involved in it might say, “What’s there to talk about? Once you’ve earned enough, cash in your profits, and that’s it.” However, it’s not as simple as it seems.

The first question arises when is the profit sufficient, and when is a person satisfied with their earnings to decide to convert crypto to fiat, feeling completely content.

The profit threshold that triggers a sense of satisfaction is not the same for everyone and is highly relative. What seems like a considerable amount to someone could be petty cash to another, and vice versa.

It also depends on the individual; someone wealthy might be frugal, while someone with a modest income might be generous, making even a million-dollar profit seem insignificant because they spend it quickly.

As mentioned, these matters are highly relative and individual, varying from person to person.

How to Determine the Satisfaction Threshold and When to Cash Out Profits?

In my opinion, everyone should set this threshold for themselves. To help you with that decision, I’ll share some of my personal tricks and advice that I use.

My Tricks and Treats

I hope my tricks and advice will be helpful, making you successful crypto investors. Although what I’ve shared may seem highly relative and intangible, there are still rules and guidelines that, if followed, can lead you toward gains.

Everything I’m about to tell you represents my personal views and is not financial or crypto advice. I’m not a financial advisor but a writer who loves to “share wise advice” and a small crypto investor, not someone with billions obtained by a lucky bet on a “Meme Coin,” pretending to be important, giving advice on investments!

The Adventure Begins

Let’s embark on a new adventure and imagine that we’ve invested in Bitcoin or another crypto and that crypto has started to rise significantly. We decide it’s time to withdraw our earnings.

The first thing I would do here is check the direction of the market, whether it’s in a bear or bull market. Why would I do that, you ask?

https://cryptonftworlds.blogspot.com/2022/12/bear-bull-and-crypto-winter-where-do.html

Because if the market is bearish, and your crypto has surged, my opinion is that it will soon and sharply decline. If it’s a bull market, there’s a good chance it will continue to rise throughout the bull market. What to do then?

If you’re not a Hodler and frequently buy and sell crypto, it’s good to cash out during a bear market and be patient during a bull market. The profit can double or even go 3X, 5X, or 10X in a few days. If you’re a Hodler, the word itself tells you what to do next!

Limits and Borders, Not Those National Ones

My second trick is to determine priorities and sums that are sufficient for me and with which I would be satisfied.

So, let me explain. Suppose I’ve invested in Bitcoin during a bull market, as I’m a Hodler and don’t touch BTC in a bear market. BTC starts to rise dangerously, and it’s expected to reach $100K.

I set upper and lower limits for profit with which I would be satisfied and remain well in the positive. In this case, the upper limit is the maximum growth expected for BTC, $100K, and the lower limit is a sum with which I would be content and stay in the positive if BTC doesn’t reach the upper limit of $100K but starts falling due to the end of the bull market.

For example, if BTC hits $98,485.33 and starts falling due to the end of the bull market, and I set the lower limit for withdrawal at $85K if it doesn’t soar again and hit $100K but continues to fall, I must definitely cash out at $85K, and that’s it.

If you use this method of mine, the most crucial thing is not to move the lower limit when the market falls. If you start moving it, in the end, you’ll end up in the negative, for sure!

https://cryptonftworlds.blogspot.com/2024/01/when-to-buy-crypto-and-when-to-sell-my.html

The upper limit can be EXTREMELY adjusted if the market dictates it. If BTC rapidly surpasses expectations, for example, reaching $200K instead of the expected $100K, the upper and lower limits can be adjusted. In this case, the new limits would be:

Upper limit: $200K
Lower limit: $185K

Such extreme cases are very rare but entirely possible in the crypto world, so be prepared for anything and have answers to all new circumstances ready. In the crypto world, expect the unexpected!

Still, it would be best not to touch these limits, as they are called limits, to reap the profit you predetermined and are satisfied with. But everyone does what they want, as this is a free market and a free country.

Profits Payout and Conclusion

Now that we’ve earned a substantial amount, it’s time to cash it out! The crypto you’ve gained can be cashed out in various ways. You can exchange it for fiat money and withdraw it to your bank account, convert it into stablecoins like USDT or USDC to reinvest later, or exchange it for fiat. You can turn it into BTC or ETH and hold, stake, lend it, or leave it in the crypto you prefer and withdraw it from the exchange to your cold or hot wallet.

https://cryptonftworlds.blogspot.com/2023/09/how-to-safeguard-your-crypto.html

The choice is yours, dear crypto investors, and only you can decide best what to do with your earnings.

My choice would be to cash out a portion into fiat and reinvest a portion in Bitcoin. But that’s just me and my choice, and I don’t want to force anyone into it. The most important thing is to have funds, and how each person decides to manage them is entirely up to them.