Here's the thing about being in coins that are aggressively appreciating - the point you should sell is a dilemma.
Conversation With A Friend
My best buddy called me up today and we we're talking about Ripple (XRP). He bought about 1,300 Ripple around .70 cents and was wondering what to do at this point.
Just hold it all and wait/hope to see $10 on XRP
Sell it all now and book the 4x profit?
Decisions, Decisions...
There are other options as well, but the first thing to figure out is this:
- Do I need this Money?
- If I do need this money, when do I need it?
In his case; he and his wife I trying to buy a house. He thinks they found something, obviously in this case any extra money helps. However, he still wants exposure to Ripple (or crypto in general).
A Rule That Guarantees You Can't Lose
I always tell people that selling half of an investment once it doubles isn't the worst idea. You get all your money out and are now free rolling. No matter what happens going forward you can not be in the negative on that investment.
Granted, you have less exposure to potential future profits, but you have also just locked in those initial dollars. If you need the money it's not the worst idea to do this.
It's Easier When You Are Up More
In cases where you have seen a 4x return it is even easier to pull the trigger on your initial investment. My friend can now sell just 25% of his position to get his original capital back while still keeping a majority of his XRP in play.
Given his situation that is a no brainer.
Begs the Question Though..
When should we sell? Many of us hold coins that we have seen 5, 10 even 20X returns on yet we continue to hold strong?
What is the end goal? When is it enough? What price does a coin have to reach for us to book profits?
This is the dilemma that many face.
And it's a great dilemma to be in!!!
Learn to Invest Like The Cat
Best Regards,
Disclaimer: All content in this post is my opinion and for educational purposes.
I feel the only bad thing to do with cryptos is to sell them to buy a lambo.
I suggest figuring out what you really want.
If a homestead is the thing for you, start working out how much it will all cost, and work your portfolio to get you the coins you need to trade for it. And the coins you will need to live there.
It isn't so hard with cryptos, as they are all deflating (going up in value while the dollar is inflating away) So, when you put that bitcoin in the "bank" (wallet) it isn't going to go away; dwindling to nothing.
So, you can figure out how much your life costs. And then get your costs down as much as you can (pay off all debt) Then figure out how much crypto will afford that, and work towards it.
Remember, when you actually have cash (coins) in hand, you can work much better bargains. Buying houses where you want, and not where the job is. Buying houses before foreclosure, or at auction.
OMG, yes. Buying a lambo is not the move. When I sell it is because the money is going into fixed assets producing income for me. If the income generated from those assets is enough for a lambo - then I may consider it ;-)
Good call on using cash to buy foreclosed houses at auction. Cash is king in real estate. Its not for the faint of heart or those who aren't self starters. It takes a lot of work but can yield great returns and (relatively) passive income if you rent it out.
I did this with my Steemit earnings because I needed the money due to a family crisis. I have earned back all and in the process found a consistent posting strategy that works for me, it's a small but dedicated group of readers based on the content I write that means a lot to me.
I think the time to sell something, is if you've already profited huge, but you no longer believe in what you bought.
I know you shouldn't trade with emotion, but at some point, if your investment is in something and supporting something that you're only in it for financial gains "only"... I worry about that...
For instance, say Hitler made his own coin, and it went up 10,000% at what point would you say "you know what? Maybe I've profited enough on this, but I really should park my investment where I could make better profit elsewhere, and still support a good technology".
I'm specifically talking about XRP... it could be any investment.
So when you say "what do you say" and if you are looking at profit potential alone... I'd like to add the third element.
Which is, what are you supporting, encouraging, and even "voting for" with your investment.
Collectively if we park our money where it truly belongs, we all win.
I give the same advice. Sell half or a quarter, then use that money to buy into a different cryptocurrency. When that doubles, sell half again - rinse and repeat.
Your money should be making money on your money. :)
Like the saying goes - "Play it till it breaks"
Hodl that XRP!
nicely posted by you i like it
I am holding for a longer period. But as soon as i can buy a house. Who knows what i might do. All lot of it has to do with why you invested , and how the market is.
Exactly, everyone's goals and needs are different.
Great post, and this is a huge topic for many. I'm basically holding until I have enough across the board to cash out and buy land with! This makes my game slightly easier to play then consistently chasing the market and trying to figure out what happens next. When I believe in a project, I'll invest and HODL until I can get this land :)
Perfect! You have you plan and action steps for it. That is how to do it!
Sound advice, play with house money.
I've always been one to sell all or nothing of my position, as I don't like to take away from future profit making. When I go out of a position it's usually because of a stop-loss being triggered.
Great advice, you sound level headed!
My advice to the cryptocomunit is when your making profits like this, take some money off the table, secure your future, buy a home cash and pay off all your debts, from that moment on you will have a sense of freedom:-) "it better to get out to soon than to late" just my view based on real life experience. Dollar Vigilante and Max Keiser have already done this a long time ago
Yep, late is always worse. It's funny I don't have near the following they do yet share just as many sound principles :-)
Im following you! I am not sure that the crypto currency is what you guys believe
I am currently hoping that SALT takes off (I do not own any.) Then scaredycatguide can park his Ripple at SALT as collateral for the SALT loan on the house. That might prove to be the best move.
when to sell is depends on how you need money. we have different kind of way of living every answer is different for each people. an investor will not sell unless he/she needs money. I believe that every crypto coins on the top 50 will have higher value in the future.
THE REALEST POST I read today... I had a very similar conversation with my friend this morning. Think ahead, know your situation, have a game plan and stick to it. Great post!!!
Yes! Gotta have a gameplan ahead of time.
sold some earlier profits,,but now hodling long term since this a long term play with me but im okay with..this is basically my play money so its all or nothing from now
I really like this kind of content, crypto is the the method of payment of the future, the new cash. Everyone in the world will be adapted with this currency, free marketing and secure money. Illuminatis are scared, they aren't taking any piece of the cake (sad for them).
¡Hope everyone are having an awesome day!
get known about the jobs of the future now, no bosses, good health money and lot of free time to invest in the family.
I am old enough to have lived and lost in the dot com crash. The loss was huge and out if my control. What I learned then was to cash in to build your security pot shall we say. Next lesson was to spread the risk away from a single point of failure - and in crypto there will be a lot ranging from shady operators to regulation to hacking to liquidity traps.
My crypto strategy is about setting aside a comfortable amount that you do not need to touch. Set that in thirds. One third buy and hold. One third find an earning vehicle. One third start mining. Risks are hedged that way
Could not have said it better myself mate! And yes, I was old enough for the dot com crash to. Those lessons are paying dividends now :-)
I also adhere to this tactic. If the crypto goes up, you can not sell the entire amount, it is better to withdraw some part, for example how much you invested, and continue to observe the price increase. In that case, you have already benefited.
If you are interested, which altcoins most gained in 2017, I invite you: https://steemit.com/cryptocurrency/@cryptorep/which-cryptocurrency-has-the-largest-increase-in-value-in-2017
https://steemit.com/cryptocurrency/@cryptorep/the-best-crypto-debutants-in-2017