Member-only story
When and how to book crypto profits
After spending 15 years investing in stocks, options, mutual funds, and indexes, it can be extremely challenging figuring out when and how to book crypto profits. Crypto’s volatility compared to traditional stock investing is like comparing major league pitching to a child’s game of tee-ball. And just when you think you have a strategy figured out, the market does something to make you feel or act stupid.
Trying to tell someone when/where to take profits is like telling them what they should eat. We all have personal tastes, different appetites sizes, different schedules, and even genetic dispositions that may affect our eating habits. And most of us know that eating candy for breakfast is not a good idea, but that doesn’t mean that it stops everybody from doing this.
Committing further to this eating metaphor, like eating, taking profits is important for everyone to do. Don’t get me wrong. If you want to invest in 0.10 (or whatever amount) of Bitcoin and just hold it, there’s nothing wrong with that strategy. I’d look at it similar to taking a multi-vitamin daily. But if you are going further down the ranking list, it is probably a good idea to bank some of your gains and store your acorns.
Here are some lessons that I have learned and some strategies that I use and plan on using moving forward. Since none of us own crystal balls…
