Topic: Taking Profits on Altcoins Strategy - page 2. (Read 1071 times)

This is a good strategy and I use it myself, getting a profit from trading new coins, I use part of it to buy BTC. And of course, I believe that Ethereum will still exceed its ATH not only in relation to the dollar, but also in relation to bitcoin. Therefore, every investor should have, in addition to BTC, also ETH in his wallet.

I am looking to take some profits on my altcoins after the next big pump. Need some advice if my strategy is good or not. I'm based in the US.

1. When I start to take profits from my altcoins do I just sell them on the exchange for dollars and then buy stablecoins with that? Or do I somehow trade the alts for stables? Does is matter since selling or trading them are taxed for capital gains regardless?

2. Once I take the profits in stablecoins, is putting them on something like Blockfi to gain interest the best thing to do while I wait for another dip to possibly reinvest them?

3. Once the bull run is over I'm most likely going to keep all my bitcoin and probably most of my Ethereum. I'll sell most of my alts for stablecoins but keep small bags of the ones I want to keep through the bear market. Is this a sound strategy?

4. During the bear market is taking a cash loan using my crypto as collateral (BTC and ETH) a good way to defer capital gains taxes? Won't I have to pay these taxes eventually? I know there are drawbacks to this strategy but it seems like a lot of experienced people do this.

5. After the bull run should I just put my stablecoins in something like Blockfi during the bear market? Or is cashing out to dollars and investing in something like real estate a good way to defer capital gains taxes?

I know these are a lot of questions but any advice is greatly appreciated, this forum has been extremely helpful for a noob that has been in the space for about 4 months now. Thanks!

We have different strategy in taking profits on Altcoins. For me, I would rather choose an altcoin with good return even for a short run then put some percentage of my profit on bitcoin so that if ever the altcoin I choose suddenly lose it's value, I still have profit put on bitcoin. It's too risky to hold altcoins specially a new hype altcoin, maybe ETH is good or BNB but others, I doubt it, that's why be wise, if you gain profit through pump in altcoins, put some percentage in bitcoin.

Hmmm, the things you have said here are good moves to make in an investment like this. There is nothing wrong with investing in real estate, if you have enough funds to invest, then it wouldn’t be bad to take out a part of that money and invest in real estate. Real estate is like one of the best investments you’re going to make these days. So, that’s a yes. Keep part of the money for investing in cryptocurrency, while the rest goes towards the real estate investment.

When the market is bullish you can hold your cryptocurrency and when you feel you have made enough profit, it’s best to pull out and wait for the right time when the market will crash. It wouldn’t be bad to invest back into cryptocurrency with the money. Even at a stable time like this, cryptocurrencies like BTC and ETH can make you enough profit in a month than you will get from those BlockFi.

The best option is to invest in BTC, ETH, BNB for more profit in the long run.

For me, I would rather choose an altcoin with good return even for a short run then put some percentage of my profit on bitcoin so that if ever the altcoin I choose suddenly lose it's value, I still have profit put on bitcoin.

It's too risky to hold altcoins specially a new hype altcoin, maybe ETH is good or BNB but others, I doubt it, that's why be wise, if you gain profit through pump in altcoins, put some percentage in bitcoin.

Let's see about the new hype altcoins emerging. We can trade them and take profits in the short time waiting for the pump price and then sell them at the high price as we have targeted.
However, we may not need to hold them for a longer time because it may be too risky.

And there are also some altcoins that will have good news or events at a certain moment so we can just prepare to buy some of these coins and wait until the right moment after the events, so we can make higher profits at that time.
And there may be also another chance to take profits based on investing for middle and long term investment. I believe this is more to top coins only.

The gaming industry offers great potential for cryptocurrencies. Thanks to NFT, players can earn money from games, so the community of players is now very popular and is growing rapidly.

You have many options like you indicated. For example, I sold most of my profits so far and kept some amount of them in stablecoins and withdrew the rest of it. I kept some in stablecoins because I wanted to stake and increase them. I'd rather staking the money than keeping it in a deposit account for now.

Now NFT is very popular, many of them are actively used in the gaming industry and many gamers are already actively earning on NFT, even creating their own communities such as https://twitter.com/LiquidationsOf/status/1415853396792201216

I am also taking profits in altcoin especially those newly created project tokens, There are money in altcoins especially if you have invested in it at its early stage, just make sure when you are an early investor of a coin that this coin is legit and won't get rugged, that is the only problem on a newly created token, some of them are scam so be careful and always do your own research.
This is a simple piece of advice yet this is really important always, remember that you should not only invest in one coin, there is no assurance that the one you are investing in has a good potential and can make you rich so always make sure that there is other one that you can rely on.

I will try to help you.

I think the main problem with your strategy is that you have already traced what will happen in the next few months:
Altcoin season, then you take profits in USD, then it comes a bear market, you will put in blockfi.....

You need to consider different scenarios, as we don't know if we are even going to have an altseason like before, or even a so hard bear market. Are you ready for a different scenario like a Bitcoin bull run and altcoins losing even more value?

Doesn't make a difference. But you can take your profits in bitcoin. I believe that you have profit in altcoins only when you have profit in altcoin x BTc ratio.


I think it is too risk to put them in any lending plataform. You will gain 5-10% per year... that is very little in comparinson to 1000% gains bitcoin can still have in the next years, and you risk losing it all.


Certainly. Bitcoin has better perfomance in long term compared to altcoins (in general, few random exceptions). I would consider keeping a hug amount  of bitcoin now, at least 50%. Even in a bull market, as altcoins usually lose in AltcoinXBTC ratio in long term.


It depends on your country regulations and laws. In Brazil you don't need to pay taxes if you sell less than 5k USD per month. Additionally, if you are just holding in the bear market you don't have to pay any tax.

Dont worry about taxes in the bear market, just try to survive.