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Topic: Taking Profits - BTC, Free Coins or Both? (Read 328 times)

legendary
Activity: 3122
Merit: 1398
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July 21, 2017, 03:37:46 PM
#5

So ... which one would you choose?

It will depend on how much optimistic you are to that specific altcoin. Not all altcoin are having the same principle of good for long and short term of holding. Other alts can come and go within a short period of time.

My answer will be put all the amount on trades that is meant for trades. We can't feel much the profits if you will be doing a regular conversion.BTC1 will be the initial capital. After buying coins and price of it increase and I anticipate that price will be decrease thereafter, then exit. Wait for dips and will buy again. The amount to be used is the whole funds came from selling. This is the risk that is worth to shot.

I repeat, it's not applicable on all altcoins. There are alts that is worth to hold and there is also good for day trades.
sr. member
Activity: 350
Merit: 250
Hi everyone!

I would like to hear your opinion on three scenarios. I am not sure which one would be the best.

Let's say that you are trading altcoin X and you think that it will rise significantly within a short period of time.
You put 1,0 BTC on the trade (example).

Now the altcoin X rises as predicted to an BTC amount of 1,5 (+50%).

Which profit taking strategy would you prefer?

2) Take out your initial investment, keep free coins

- Now you have 1,0 BTC and an amount of 0,5 BTC of altcoin X
- You can start trading with 1,0 BTC again
- Instead of more BTC you have an amount of altcoin X - but those free coins have the potential to rise even more (especially looking at the possibilities of crypto currencies)

So ... which one would you choose?

Second one is the most logical one for me because you take some portion to the safety and you can continue with the rest. If you withdraw all, this doesn't make sense for me. Good trade should be conitnoulsy done.
legendary
Activity: 1750
Merit: 1115
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- Now you have 1,5 BTC instead of 1,0 BTC
- You can use 0,5 BTC more for future trades in order to make more profits
- You have 0,5 BTC more - it is way more reliable than other crypto currencys out there at the moment
This is something I would do! They call it playing safe! 0.50 is a great amount of profit earned from an initial investment ,now you have your bank roll back,it's time to profit from the investments.I'd distribute the amount into various altcoins though.

2) Take out your initial investment, keep free coins

- Now you have 1,0 BTC and an amount of 0,5 BTC of altcoin X
- You can start trading with 1,0 BTC again
- Instead of more BTC you have an amount of altcoin X - but those free coins have the potential to rise even more (especially looking at the possibilities of crypto currencies)
Taking a risk ? Not bad,whatever works for you ! You have already set yourself a margin which is fine.Make sure you don't end up losing those 0.50.


3) Convert some profits into BTC and keep some free coins (e.g. 50:50 of the 50% profit)

- Now you have 1,25 BTC instead of 1,0 BTC
- You can use 0,25 BTC more for future trades
- You have an amount of 0,25 BTC of altcoin X (which can rise etc.)

So ... which one would you choose?
I'll advice you to give heavy weights on the marginal amounts.The risk ratio should always be less and proportional to the investment ratio.
hero member
Activity: 938
Merit: 559
Did you see that ludicrous display last night?
3) Convert some profits into BTC and keep some free coins (e.g. 50:50 of the 50% profit)
This one.

Strategy 2 ignores the fact that if you then lose a trade later using your original BTC, you will no longer have so much BTC to play with. If your strategy of profit taking revolves around not taking any profit (strategy 2), then eventually your BTC stash will start decreasing and you'll have loads of altcoin X, altcoin Y and altcoin Z, which are all risky and you haven't taken any profit back to BTC.

Until you realise your profit, you basically haven't made any.  Especially in crypto, and especially when you're going to keep trading afterwards.

Scenario 1, however, ignores the importance of holding several cryptocurrencies at once if they are reliable (e.g. GBYTE, Steem).
member
Activity: 74
Merit: 10
Hi everyone!

I would like to hear your opinion on three scenarios. I am not sure which one would be the best.

Let's say that you are trading altcoin X and you think that it will rise significantly within a short period of time.
You put 1,0 BTC on the trade (example).

Now the altcoin X rises as predicted to an BTC amount of 1,5 (+50%).

Which profit taking strategy would you prefer?

1) Convert everything into BTC

- Now you have 1,5 BTC instead of 1,0 BTC
- You can use 0,5 BTC more for future trades in order to make more profits
- You have 0,5 BTC more - it is way more reliable than other crypto currencys out there at the moment

2) Take out your initial investment, keep free coins

- Now you have 1,0 BTC and an amount of 0,5 BTC of altcoin X
- You can start trading with 1,0 BTC again
- Instead of more BTC you have an amount of altcoin X - but those free coins have the potential to rise even more (especially looking at the possibilities of crypto currencies)

3) Convert some profits into BTC and keep some free coins (e.g. 50:50 of the 50% profit)

- Now you have 1,25 BTC instead of 1,0 BTC
- You can use 0,25 BTC more for future trades
- You have an amount of 0,25 BTC of altcoin X (which can rise etc.)

So ... which one would you choose?
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