Taking Profits on Altcoins Strategy

[Rehan Zakir]

Your topic is really informative about trading. But i want to share my trading style with crypto community.
If i a have 1000$. I pick 4,5 coins for trading and equally distribute my total portfolio in 5 parts. It means that every trade is 200$. And if my picked coin pumped 50%. It means my profit is 100$. then i reinvest 50$ and cash 50$ in my bank account.
In this method, my crypto portfolio and my bank account both are increasing.

[Looper_U]

There is no strategy needed to take profits once it's available, you have to get rid of your greed first and you also have to be patience, the whole idea is buy low and sell high but it won't happen instantly, you will have to give it time and watch the market closely, sometimes all you need is just patience

[perfect999]

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.

One simple thing what I am similarly doing like you is, converting my profits from altcoins into stablecoins and then waiting for dips to buy more of the same altcoin. Please note I'm trading only highly reputed altcoins so I'm having confident about bouncing back of those coins always. Do not do the same for random coins as they may never get pumped again.

Do not trust any third party services for your money; there are a lot of such services are offering attractive interest but I never listen to them; keep your coins in your computer/mobile because only when you are holding privatekey, those are your coins.

[btcltcdigger]

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!

I would suggest this; that once the bear market starts, invest part or most of your portfolio into DeFi.
But not rugpulls, something stable and secure like aave or compound

[SirLancelot]

1- If I sell then I go buy BNB because most of the time I am investing something in BSC and that means BNB is the king there, plus I believe BNB will go up to 700+ dollars or even to 1000+ dollars eventually so it is not a bad investment.

2- I do not like the interest rates on stablecoins because there is nothing that can gain you interest by default, those places are either ponzi scheme or use your coin to gain profit in which case they may end up failing and losing money so its going to turn into ponzi eventually when they lose money.

3- I would say btc and eth is a good decision, but keep some BNB because like I said before I like BNB and see a future in that as well.

4- It depends from nation to nation, some nations do see it as something you still have to pay, whereas others do not even recognize any tax burden until you cash it out to your bank account so even if you made millions in crypto as long as it stays in crypto its free (but this is only some nations, check with an accountant in your nation to learn the answer).

5- Investing into real estate is always a good idea because you already spent your money and now people have to work for you, finding proper people to rent your estate is a very very very difficult job and I would advise against that, but the building itself will gain value thanks to inflation so keep that in mind. Remember you can show your profits as collateral and get even bigger loan to buy something even bigger if you trust you can make money from it.

[wheelz1200]

I echo most people here, if you think your alts have topped I would cash out into bitcoin but I wouldn't go into fiat.  Yeah once you trade out your alt it's a taxable event so if you don't want to get the tax hit only way is to stay in your coins and hold out.

[john1010]

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?

I will go with this strategy, it is better to hold an stablecoin and put it in some exchange that has offer staking at least while you wait your money get some percentage of profit.

[junkerr]

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?

I will go with this strategy, it is better to hold an stablecoin and put it in some exchange that has offer staking at least while you wait your money get some percentage of profit.

this way will be very profitable when the market is in very good condition as well as in very bad condition.
but in a fast-moving market situation, I prefer day trading. trading BTC or assets that have high trades will be profitable for day trading.
but staking stable assets is also good because we will not lose the value of the money even if the market is in a bad state. but staking with other altcoin assets will be different because profits will be largely determined by market conditions.

[jrrsparkles]

In the beginning, you no need to sell your alts for fiat then buy stable coins using it, just directly buy stablecoin with alts since crypto to crypto conversion also going to be taxes as per US regulations so just avoid multiple conversions to cut the tax paying then you can invest on blockfi or simply hold the stable coin into your wallet then reinvest back after years so you are going to pay less taxes as well due to long term capital gains.

Then never take any loans, just take your capital amount and keep the gains as an asset so you no need to pay any taxes until you convert the assets into fiat.

[Slash61]

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?

after the bull, and you get a profit from the investment you make it would be better to keep it in a stable coin and you can stop for a while to enjoy it.
usually, I do that when I get a big profit from the bull run. like this year because I came out of the market at the right time.

After the correction, I bought some for potential altcoins in the market improvement, but this is not for the long term because the potential for the down market is still very large. so when we get a profit we can get out of the market quickly. don't ever think the bulls brought the asset to break the ATH in such a short time.

[bastian466]

I prefer the strategy after selling altcoins into fiat currency and then entering the stable coin I chose usdt because it can secure profit and take a chance when usdt goes down when altcoin goes up and when altcoin goes down usually usdt goes up and then sells it to buy other altcoins

[michellee]

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?

after the bull, and you get a profit from the investment you make it would be better to keep it in a stable coin and you can stop for a while to enjoy it.
usually, I do that when I get a big profit from the bull run. like this year because I came out of the market at the right time.

After the correction, I bought some for potential altcoins in the market improvement, but this is not for the long term because the potential for the down market is still very large. so when we get a profit we can get out of the market quickly. don't ever think the bulls brought the asset to break the ATH in such a short time.

With convert it into a stable coin, he can buy again when the price is down or he can select the other coin which will have potential and have a chance to increase later. As long as we know when we should sell and take profit, we can sell it and do not wait for more or become greed because we will be too late to sell at a high price. We should use the chance to make a profit while we see it. Otherwise, we will regret not selling at a high price because the price will not stay at a high price for a long time.

[mrjoy15]

Taking profit during the altcoins season is the best choice, because if the season is over, we will see a lot of coins wasted and experiencing a downturn, and in the end only coins that are stable will dominate.

You can still be profitable as the market drops, since dropping every weekend is a new trend. Thing has not always repeat but last 2-3 month trend on that way. Money takes the weekend off then buy back from the weak hands. I'm expecting good days still left, instead selling just holding. Anyways, No one knows for sure what happens next DYOR!

[RILWAN]

Taking the profits from altcoins seems simple for me all I need to do is to exchange the altcoin to ustd and hold till the dump comes to buy back and wait for the next pump to sell again.

[DarkDays]

Your strategy is complicated. My suggestion is to stick to a simple strategy: buy bitcoins and hold them for the long term.

My take on this is that, yes, buying and holding BTC for the long term is a strategy that many turn as it is believed that it will pay off in the future. But I'd also not sell the crypto market short and would also suggest considering a few strong alts like ETH.

With Serenity on the way it looks to me that buying and holding ETH for the long term could increase your odds of success.

As for the tax questions, As a citizen or resident of the U.S., you must pay taxes any time you convert a coin to dollars or another coin. There are no tricks that can avoid it or delay it.

I agree, as for tax, there isn't much way around it, unfortunately, you'd have to pay it as capital gains whenever you're converting your original coin for that profit within the current tax year.

[Anonylz]

Depending on how trusting you believe the blockfi platform is, personally I won't trust my coins in such places I  have no control over,  besides I don't know what is the interest rate they give on stablecoin staking but I feel it is not worthy keeping your entire crypto funds because of some miserly interest, the best idea while taking profit is either sell to stablecoin and hold yourself until when the market correct enough to buy in again.

[bastian466]

I prefer the strategy after selling altcoins into fiat currency and then entering the stable coin I chose usdt because it can secure profit and take a chance when usdt goes down when altcoin goes up and when altcoin goes down usually usdt goes up and then sells it to buy other altcoins

Stable coins is not moving that much but crypto due to it's volatility the value against usdt is really good if you are into
day trading, you can pick which assets that's experiencing downfall,

Buy and wait, then convert it back to usdt once the market rise up, short term profits is far better than waiting for long
time but missmanaged your timing.

I realize that my strategy takes a lot of time I prefer to trade long term, be patient to watch the market move as I don't have much time to trade short term.

Not a problem at all, as long as you have your goals and you believe that in any period of time your target will reached out,
there are people who deal wtith long term and earned more decently than those who works with short term deal,

Traders who don't have that much time mostly goes with long term, look at the positive side and earn your rewards.

Yes,my friend but I don't really focus on the target too if there is a chance to sell I will definitely do it even though in the short term I don't waste a profit opportunity if I find lucky time when I see a green market

[blockman]

And actually it's also much better than having to wait a long time for prices that are too high because usually after the green market, there will always be a red market in the same day, so taking profit early is a very good thing too.

As long as you're content with the profit then take it out and have it cash if you want or remain it as a stable coin. So in times of drop again, you'll be able to buy those coins that have dropped a lot and that's what most of the traders in long term does. They wait for the plummet of those coins that they want to hold again and make a profit by holding it. The strategy is very easy but to spot on those coins that you're about to buy at their possible lowest is hard. You need to be more active in the market and check out which of those have dropped significantly and if you think that coin is worthy to buy at its lowest then you just repeat the strategy.

[Yamifoud]

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!

For a lot of strategy you have made, you make yourselves confused. Instead of thinking about those strategies why not focus on one thing? Buy, Hold, and Sell, will be the most effective strategy and you are making yourself too easy.
Honestly, I don't know where you go with all these strategy, you just helping yourselves to get compromise and you have stated to take a loan during the bear season. Because of planning to take a loan much better to sell you coins and get back when the market is bullish.

[gundala]

~
We all have different satisfaction from the market, if you are happy with that then selling is a good idea though holders have their own timeline and that’s how they play in the market. Taking profit is not a bad idea, this is always advisable because of too much volatility in the market so to prevent from losing the money, do take profif.

apart from being able to analyze the market, we must also have control over our satisfaction. sometimes greed makes us want bigger profits, even though profits are in sight. when hopes don't come true, gains turn into losses, all that's left is regret. So, feeling satisfied with the profit that has been obtained, whatever happens next, whether the price is higher or lower, we must be grateful.
from cryptocurrency I really learned a lot of things including patience.