Taking Profits on Altcoins Strategy

[ene1980]

I think it is also difficult to predict the peak of a bullish cycle, especially of some altcoins that could really attract a lot of interest even in a lateral situation like that of these weeks.

When the market started rallying there were many new hyped up coins and tokens that appeared and gave everyone the opportunity to make huge amount of profit and the only problem is that when the hype dies off you will end up loosing your investment, there are many NFT projects that came out with a bang and the price peaked to levels that we never expect and then the massive sell off took the entire market down and if you were able to book the profit during the rally you were lucky and i am not confident to enter those once again.

[1714989909]

1714989909

[1714989909]

1714989909

[1714989909]

1714989909

[1714989909]

1714989909

[otundebis]

I will go with your number two strategy if I were you.  Putting your profit in stablecoin while you gain interest on it until the bear market circle is over is the best way to go.  The Cryptocurrency market is unpredictable especially with new institutional investors selling and buying,  you will never know how low market could sink!

[terciduk123]

I like your No. 1 choice, when the Bullrun is over and we take advantage of Altcoins, it is better to keep it in stablecoins, as a preparation for our trading capital in the next season or when there is a good opportunity to trade and withdraw some of it for real-world investment
Remember, never put eggs in one basket

[Dexion]

its complicated to analize the peak of bullish cycle or bottom of bearish cycle. our analisys should be wrong but atleast we could minimize the risk that may occur later. the simplest thing we can do only close position when it give us enough profit, take a rest and wait another opportunity.

Every owner of Altcoin assets must have their own strategies and plans, and indeed if there is an opportunity to take advantage that is deemed sufficient, we should take it but not all of it. Don't have high expectations to always get fantastic profits until it's too late to get profits.

[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.

I think it is also difficult to predict the peak of a bullish cycle, especially of some altcoins that could really attract a lot of interest even in a lateral situation like that of these weeks.

It is hard but you get to take profits whether you consider it as the peak of the cycle or you think that the price is quite high already. That's the game for altcoins and you have to make sure that you're doing well in taking profits because it's your money and it's needed to get sometime for you to understand the cycles and what's the probable peak that you're about to take the profit. Learn from the mistakes of others that didn't took profit at the peak because they think that it's not yet the peak and that's why you have to be decisive in taking profits during the top, it's going to depend on how you're going to look at the price of the altcoin you've got and how much profit you have already.

[QueenVera]

I am looking to take some profits on my altcoins after the next big pump.
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?

For the security of your money purpose, keeping them in stablecoin is tge safest that's if you don't want them to be in fiats. Now ones they're in stablecoin, having them stored in your personal wallet is the next best thing to do. I don't accept the idea of handing them over to a third-party for storage or investment as you're simply putting back your money to the market for scammers to try stealing.

Many things can go wrong when your money isn't under your control, firstly you can get restricted from accessing you money or they get stolen through hack and now you'll have to rely on the operators of the service for compensation.

[memed97]

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!

some of the strategies that you do I see you have learned a lot about how effective strategies are in trading, I suggest to do a simple strategy, buy at a price that you predict will increase in the future and sell for a profit, if there is a decrease in price that is not according to your predictions from there we need to do long-term trading to minimize your losses.

about taxes that we cannot avoid it is our obligation as good citizens.

[viananda2525]

I like your No. 1 choice, when the Bullrun is over and we take advantage of Altcoins, it is better to keep it in stablecoins, as a preparation for our trading capital in the next season or when there is a good opportunity to trade and withdraw some of it for real-world investment
Remember, never put eggs in one basket

we should have some stable coins in our wallet in order to catcht best opportunity when we see major coins drop sharply. having some stable coins will help us to avoid huge risk from altcoin investment, price volatility was very extreme and maybe some our assets could drop. This is the benefits stable coins to buy on dips.

[coin-investor]

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.



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?

My take on this one is to do it only if you are sure that the altcoin that you intend to sell will be worth nothing some altcoins are worth keeping and some coins are worth dumping, trading it on the stable coin is good if you are sure that it's going to worth nothing and the market is going down, the stable coin is good for safekeeping in times of bear.

[Golftech]

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

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.

Yeah you're right mate, buying bitcoin is the most essential right now especially when you are wiser enough and become more patient for all our decision making.And for the US taxes we don't care if we pay taxes as long as we have a huge income in crypto currency.

Keep buyingif you are aiming for long term investment, don't be bothered by price changes, let your own analysis

brings you the right decision making. Many traders suffer losses since they are chasing for  quick profits and they

didn't  anticiapate changes in direction when manipulations happened around.

[coinic]

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

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.

Yeah you're right mate, buying bitcoin is the most essential right now especially when you are wiser enough and become more patient for all our decision making.And for the US taxes we don't care if we pay taxes as long as we have a huge income in crypto currency.

[Maslate]

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

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.

Yeah you're right mate, buying bitcoin is the most essential right now especially when you are wiser enough and become more patient for all our decision making.And for the US taxes we don't care if we pay taxes as long as we have a huge income in crypto currency.

I don't just invest alone in Bitcoin, it is safer to spread our funds to different coins in the market. There are several potential altcoins available and sometimes they are more profitable than Bitcoin. Maybe I was wrong but I have some experience with them that is why I keep buying new projects for short-term trades and sell them when hypes have come.
Well, that seems to be risky but sometimes we have to gamble.

[altixz]

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

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.

Yeah you're right mate, buying bitcoin is the most essential right now especially when you are wiser enough and become more patient for all our decision making.And for the US taxes we don't care if we pay taxes as long as we have a huge income in crypto currency.

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

[Shasha80]

Yeah you're right mate, buying bitcoin is the most essential right now especially when you are wiser enough and become more patient for all our decision making.And for the US taxes we don't care if we pay taxes as long as we have a huge income in crypto currency.

I don't just invest alone in Bitcoin, it is safer to spread our funds to different coins in the market. There are several potential altcoins available and sometimes they are more profitable than Bitcoin. Maybe I was wrong but I have some experience with them that is why I keep buying new projects for short-term trades and sell them when hypes have come.
Well, that seems to be risky but sometimes we have to gamble.

Buy good coins in the market, this will allows you to earn more profit because Bitcoin is not the only good coin to invest with, there’s a lot of good altcoins as well and this is advisable, to diversify your investment and never put all your money in one basket only. New projects are more risky, if you want at least a sure profit always go for the best options, have at least 5 active coins in your wallet and take profit always.

I agree that not only Bitcoin is good for investment, there are also many popular altcoins that are worth buying and can generate profits. It is advisable
for beginners who do not have good knowledge and analytical skills to avoid investing in new projects. I say that, because very few new projects can
be successful in bringing us profit, because most new projects are only used for pump and dump. Which can result in us losing money if we sell late at
the right time, my advice if we want to invest in altcoins, choose coins that are included in the top 10 cryptos on coinmarketcap.

[rozak]

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.

when it comes to choosing the right asset like BTC or ETH I believe there is no need to doubt.
but your suggestion is correct. investing in several potential assets will reduce the risk of loss as well as increase the maximum profit potential.
I myself do a lot of strategies like that. choose more than one asset for investment with a different planning. some are for the long term, some are for the short term.

[Tegxy]

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!

1. Have a look at your options. Remember gain is the focus. Which is less expensive? Change to dollar or stables? Use a procedure with lower fees.
2. I can't say much about blockfi at the moment as I haven't invested with them but if you are pretty much convinced after your research, you can go ahead. Consider diversity as well for interest generation such as staking or farming on seascape Network.

[Rengga Jati]

IMO,
you must know what kinds of altcoins we are trading or investing in so that we can understand how to take profits from the altcoins. For, in my opinion, there may be some different strategies of taking profits for several different types of altcoins.
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.

[coinic]

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 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?

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?

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.

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 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.

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?

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.

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?

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.

In the Philippines  where I belong I can see that not all of us here know about bitcoin and on how it was going to be more fun and challenging to earned bitcoin. But the fact is even not all of us is not knowing of crypto but we are trying to teach to everybody because bitcoin and altcoin is the best to earn of it..

[Roidz]

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.

Remember, never put eggs in one basket

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.

In my opinion in investing or trading we don't need to hope to be rich because if this is not fulfilled or we lose, of course we will feel sorry, I myself have been trading in the market all this time and I don't expect if I can get rich but at least the profit I get can be sufficient my family's daily needs , I agree with your advice don't rely on one type of altcoin to invest because it's better for us to take several altcoins in trading so that when altcoin A suffers a loss, of course at least Altcoin B can cover the loss, because we know that if the market goes red of course not all altcoins experience this and sometimes there are altcoins that go up when other altcoins also go down.

[Garsipop]

Yeah you're right mate, buying bitcoin is the most essential right now especially when you are wiser enough and become more patient for all our decision making.And for the US taxes we don't care if we pay taxes as long as we have a huge income in crypto currency.

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

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.