Topic: BTC profit taking strategies? - page 3. (Read 1360 times)

  Though many traders don't know it, a profit taking strategy is a crucial part of the trading process. Knowing when to exit a trade when in the green is one of the tougher objectives for traders and investors to understand. Some will close their position in one go, while others will look to partially close their position as it moves in their favour. Some traders are likely to set the take profit targets based on technical analysis, while others use a fixed target (for example, in pips or $ value) or might follow their gut feeling (for example, if news comes out that affects their open position). Trading psychology is one of the most difficult parts - if not the most difficult - to master in trading. To achieve consistency, discipline and improve your risk management skills, it is important to set rules and to have a clear plan what you want to do and achieve.
  The HODL strategy for taking profits in crypto also leaves a heap of coins on the table. Even more than with stocks and other investments, coins go through a number of peaks and valleys before arriving at a particular price. Investors who know how and when to take crypto profits can take advantage of these rises and dips and increase their pot by a substantial amount of coin, while taking profits along the way. It's important to note that profit-taking is not a guarantee of future success and that there is always the risk of losing money in the cryptocurrency market. As with any investment strategy, it's crucial to thoroughly research and understand the market before making any decisions. Additionally, it's important to have a well-defined investment plan and stick to it, rather than making impulsive decisions based on short-term market movements.

     If it's really a profit, why not? Do the plan you want, and I don't see anything wrong with that. But if I'm the only one who has to wait for the 100k for each bitcoin before I sell it, then your withdrawal plan every week should still be done.

     This is just in my opinion, so that's more profit, and most people see that 100k$ each of bitcoin can be achieved in a few months now, especially since most institutional investors continue to buy Bitcoin in reality.

Everyone has different strategies according to their own lives. Maybe your plan is good but not necessarily good for other people and vice versa. In my opinion, a good strategy is to sell when the price of Bitcoin goes up and wait when the price of Bitcoin goes down, then buy again. That's all. It's easy for me to take advantage of Bitcoin as long as I patiently wait for a long time.

Your method is DCA selling. This is a quite effective and safe method, helping us avoid fear and fomo when the price continues to increase after we sell out. It gives us the mentality that we always have Bitcoin, no matter how much the price continues to rise, we still have Bitcoin to sell. However, actually doing this is quite difficult, it requires discipline as well as good psychology to do exactly what you set out to do. I have experienced the market's hot growth period in 2021, so I know well the feeling of holding Bitcoin whose price keeps increasing. Sell ​​out or continue to hold? If you sell a little, it's not worth much. If don't sell, what if it drops tomorrow? Many questions and decisions kept popping up in my head, making me really confused at that time, and I sold them all when Bitcoin price was only 35k USD.
Then came a period of real regret when the price continuously increased, nearly double the price I sold it for. Coincidentally, in this cycle I also plan to apply the DCA selling method as you mentioned, and hope I can maintain a strong mentality to not be swept away by the market's madness like before

I always admire those with a good plan.
The good plan here is the profit taking you seam to achieve.
 Am sure our dear OP has been taking in some profits no matter how small, but if the fear that all might be lost is inherently causing the FUD or the decision to withdraw and reinvest some of the profit into other necessities and investments and then to adopt a better and more reliable strategy to increase profit in the long run from now when you start to HoDL, then I applaud your effort and the great comments on the best strategies to use so far given.

Bitcoin sure has a good store value as well can act as a hedge over inflation in some cases and for the fact that the bullish season is gearing up as well as the fact that one can easily get some BTC for as low as a few Sats, makes it a good coin that one can try a DCA strategy with and be consistent and disciplined about doing so.

Well it is always good idea for us to take profits in crypto when we can do it. The Bitcoin market is so volatile and we see so many swings it is smart to take some profits.
And then we can use those profits to buy more coins. This is something I really do like about being bitcoin hodler. We can do trades and then invest more fiat into our coins at any time and do it fast.

Like those that picked $70,000 before they can release their Bitcoin to the market, they will definitely see it very soon because the price of Bitcoin has gotten to $68,321 which is the sign that it will continue increasing but it will not reach $100,000 before it will return back to bearish season again. Anyone that will pick 125,000 will not see that price from the market this year 2024, but it will definitely appear in the next bullish market but it will be difficult for investors to experience it in this new bullish market that started few weeks ago. The most important in your strategies is to ensure you take a reliable income at the end, because that is what will give you happiness.

Yes you are right that mate we cannot  predict the movement of the market which means we can not say that tomorrow the price of a coin that we hold will increase.  That's the reason why In crypto we should take good care of our coins we need to analyze if and double check when we gonna buy and when we gonna sell our coins in order to have a good and huge profit. Anyways  we have different perspective in mind so it's up to us if we gonna do it or not.

For you to make a profit for any of your investment you have to understand went to invest and then went to invest and before you will make a profit you can only invest when the price is on the bearish market and expecting for the price to increase before you say in order to make a huge profit so Many of us who is investor does not know the actual timing of investing in Bitcoin for we to make a profit, They just target whenever the price of Bitcoin is getting increased is when they will decide to invest thinking that that is the opportunity or best time for we to invest and make a profit.

I know the US housing market is on a bubble and will burst so I would think that the CAD market would be somewhat alike.  It would be ashame to sell when we have some to go in BTC and buy high in the housing.

The tax implications and things such as a trust and all you need a pro advisor.

You haven't shared too many personal details with which people can identify in real life. So, you have nothing to worry about. It is good that you understand the importance of being anonymous. Do not share your wallet address or any personal details that may hard your online or real life. I understand that you are looking for advises. But, people won't be able to give you best advises without knowing your situation and it's not wise to share your personal things online. So, it's better to do your own research and figure out what you should do to take maximum profit.

Look when you plan that to happen mate and look how much Bitcoin price now it is nearing to break 100k CAD so are you still planning that ? or at least reconsider your decision and instead wait for at least next year to not just put a down  payment for your dream house instead to buy it completely?
remember that there are lot of risk but the fruit is worth it if happens.

Yes and remember anything can happen in the crypto market and if we someone want to get the best price, wait until the halving is over while all the coins are dumped based on previous history. We have to decide for ourselves or accept advice from experts regarding temporary price predictions because we face uncertainty at this time. I think, if the main coin was dumped or pumped, the other coins on the market would also be in the same condition right now. This is where strategy is needed and we will be able to monitor and navigate the market well if we don't wait and be patient for quite a long time.

True! We have the same view about our bitcoin holdings; even now that the bitcoin price is at $60k, I'm still not selling anything from my holdings. Why? Well, I want to sell some of my bitcoin if I feel that this is as far as the bitcoin bull run can reach, but right now it is not the time for that. Because I value my holdings, I don't want to sell them all because I still believe that bitcoin will increase even more in the future. At least if that happens, I have assets that I can be proud of, and I can be rewarded for that. Also,  I'm concerned about the community. If many investors already sell their holdings, then surely there will be a price drop or dip in the bitcoin market, but the price is still stable at $60k and up, meaning many investors still keep on holding their assets. I may not have huge holdings, but profit is profit, and bitcoin is bitcoin.

I don’t see any problem with OP’s strategy but I believe if he is certainly looking for  bigger returns, then selling his bitcoins all in when bitcoin bull run hits the market is the perfect time. That way, he will gain massive amount of profits in just one time selling. Now, when the market turns to bearish again, that’s the time he will start buying back again with a lower price and continue with DCA. Always follow the basic, buy low and sell high. With that, you will never go wrong with that simple strategy.

However, everyone has individual strategy when it comes to profiting from our own investments. I will not say follow this or follow that because not all that works for me works for you too. But as long as you never sell at a lower position, that may seem good enough.

When to sell bitcoin doesn't have a particular time, some people can buy bitcoin and allow it to stay as they like before they can sell their bitcoin, let us know that everyone have a particular duration that is convenient for them to sell their bitcoin, so it's good for we to understand bitcoin very well and know exactly when to  sell.

IMHO in this case we will not feel a loss regardless of whether it is a market expert or not because seeing from the initial benchmark from what the OP said he had determined the selling point where he would sell his bitcoin gradually which means he was very profitable when the bitcoin price was at the value that was determined to be sold in the initial planning.
As for when bitcoin eventually declines then it is not a problem but the strategy changes slightly where the original fikus in sales becomes focused on buying and waiting back until the price we set to sell again.

This is a strategy that can still be done in my opinion although there will certainly be some people who will disagree with this but what I feel at this time as long as you invest and sell bitcoin there and get a profit then it is not a failure.

It should depend on your plans and what you have thought about your holdings from the beginning. As you mentioned, you and your wife wanted to buy a house with the money and possibly retire early with your Bitcoin investments, so your plan should be based on your targets and your selling strategy should give you enough returns for you to fulfill your wishes. If you think the strategy you have can give you the desired returns, you should go for it.

If I was to suggest something regarding your situation based on your goals and targets, I would never suggest you to sell your Bitcoins using a reverse DCA method but I would suggest that you hold all your assets and wait for Bitcoin to top its price of this cycle and then you should sell when you see that it has started dropping after reaching a certain point.

Of course I support your strategy which you have analyzed but if you can follow your strategy properly then surely you will get more success and build a house as per your mind. If I had 1 btc amount I would definitely make my success like you and make some more strategies of my own. Currently bitcoin market is very pumped in this pumping market if you sell your bitcoins and wait for dumping it will be better because dumping will happen before or after market halving and market will go up again before bull market so if you can practice in time. Then surely you can achieve more success.

The advice you give is very useful not to sell Bitcoin holdings that we have saved for things we don't really need because it will be very difficult to be able to buy the same amount as we have sold because the price will continue to increase, if we still can. hold back in the next few months then I think we will be able to get bigger profits and also we will be able to easily achieve the goals of the investment we have made and if we lose the opportunity like now of course we have to hold back the Bitcoin that we have In a longer period of time you can achieve profits from holding Bitcoin.