Taking Profits on Altcoins Strategy

[the ghabbar]

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 think you are very ambitious in achieving the target you want, so you start investing with a perfect profit goal, even though you are trying to balance your investment with current conditions, this is indeed a good thing to apply in investing, but what I fear you will unable to control it.

I think you need to pay attention to good altcoins, or look at the condition of bitcoin, ethereum and others, if you can maximize this, in the future your investment will generate considerable profits.
But don't forget to calculate every risk that will occur, both now and in the future, the rest is good and perfect.

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[indah rezqi]

It is great if you are currently selling BTC and buying Altcoins like Ethereum. Then, keep Ethereum for some time and before the end of the year, you sell Ethereum again. For me it was right. You also have to prepare other strategies for the future and anticipate the negative possibilities that will come to you.

[tvplus006]

accumulating our profits from short term traders to bitcoin or other major altcoin could double our profits in near future. new altcoin should used to speculate for gaining big profts but we have to doing good research before decided invest in this projects. safety should be first priority in our investment and dont ever trapped in hype or fomo.

This is an ideal scenario, only it does not look real) No matter how much research we do before investing, there will definitely be unprofitable transactions. In such cases, immediately after buying a new coin, it is necessary to set a stop loss in order to immediately fix the loss if the price moves in the opposite direction to our expectations.

[m.rifki]

It is great if you are currently selling BTC and buying Altcoins like Ethereum. Then, keep Ethereum for some time and before the end of the year, you sell Ethereum again. For me it was right. You also have to prepare other strategies for the future and anticipate the negative possibilities that will come to you.

Every experienced investor, surely they have made several alternative strategies from several possibilities that will happen, for novice investors in the crypto world, the thing that is no less important is to always monitor market conditions and don't get carried away by emotions so that they make silly mistakes such as selling assets just because they panic. .

[fileo]

Good strategy my friend. For me much better to cash out some money to enjoy life for awhile. Take a vacation tour and rest from crypto trading and investment. My strategy is different from you because I am just a simple guy starting from simple steps. Aiming to have huge gain in the future. I bought few potential tokens and will hold all until bull run.

[indah rezqi]

Every experienced investor, surely they have made several alternative strategies from several possibilities that will happen, for novice investors in the crypto world, the thing that is no less important is to always monitor market conditions and don't get carried away by emotions so that they make silly mistakes such as selling assets just because they panic. .

Just monitoring conditions without preparing a strategy will also not be effective. How effective would it be if owned assets like BTC were sold when the market was like it is today. Then he attempted to buy stable coins. I think he really looks forward to every input. What do you think?

[Devifajarina]

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!

Altcoins are the smallest level of risk in investing, this is different from investing in bitcoin and ethereum, I read how complicated the investment you are doing now is, to make an investment you don't have to think about taxes as you mentioned.

Try to make investments that provide safe and promising value, focus on your investment goals, not dealing with the tax problem that is charged, in general what you are doing is very appropriate, you need another strategy to perfect it, if this can be maximized next year you will profit big.

[Iminingpro]

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

For any NFT platform, liquidity and a large number of users are important. It is good if the principles of the gaming industry are applied to build a large community of users.

[retnoanjani]

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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?

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if you want passive profits like this, it's better to choose staking or farming on a trusted platform or exchange, that's a pretty good strategy to get passive income. while waiting for the next bullrun. and don't forget to enjoy your profit by making yourself happy, going for a walk, having a picnic, or doing whatever you want.

well, the cryptocurrency market is hard to predict, we never know when the market will bounce back with a beautiful bullrun. while waiting, make sure our lives are fulfilled, have enough expectations, and manage risks as well as possible.

[btc-facebook]

There is one important thing that you should pay attention to before being active in cryptocurrency, you want to become an investor or a trader?
If you can answer my questions, you will get answers to all your questions,
Investors and traders have the same goal of looking for profit, but have different strategies, especially when facing a bull market or a bear market.
An investor will only focus on the long term and bull market, and they will only hold their coins until the target is reached,
Unlike a trader, they must be able to take the opportunity when bull market or bear market arrives, and what is more difficult is that they also have to be able to control their emotions and also money management, the more experience a trader has, the easier it will be to make decisions.

[Chuky92]

I don't think there is any particular strategy when it comes to taking profit on altcoins, this is because what works for you might not work for another, some people are always okay with a certain percentage of profit while others are okay with long term holding with a very high expectations.
However, I would say, do well to know the type of altcoins you hold, their chances of lasting long term and their development rate; I think these can help someone to know when to take profit. There is always a saying, don't be greedy, but there are times one will see the nature of a market and decides to risk it by holding more, in some cases it works and in some it doesn't, thus why I said there is no particular strategy on this issue.
There are even people who buys at a very low price, see a good price but still holds, therefore I think it's better to know the genuineness of the coin you are holding, then deciding when to take profit. Unless of course it's a shitcoin you are taking a risk on.

[imstillthebest]

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?

you already sold them for dollars so why would you still need a stablecoin ? maybe you mean you cashed out ? thats fine but if you dont feel cashing out then you can trade em with a stablecoin .

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?

not sure if i heard that blockfi before or i only forgot it but if its trusted then thats a good idea to earn passive income than hodling your stable coin and earn nothing .

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?

heck yeah that is a nice strategy . good thing you dont forgot to have a top coins like btc and eth because they are more important than a stable coin .

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.

if you consider your self as an experience person and think you can benefit with this why not ? but to me it looks risky

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?

you already ask the blockfi thing earlier but the other one i think that was a good idea to diversify  .

[nelliella]

I think your strategy is too complicated for new investors, what I advice is simple, take one-third of your investment out when the coin do 3X to 5X and let the rest run to 10X and take more out, by doing this you will have your investment back and sit in profit. For bear market learn how to hedge yourself and short the market, this is where the profit is because they there will be a lot of stupid money still sitting around and waiting to be scooped

Yep i see your point but HODL is still one of the best investment strategy . This is going to work only but only for amazing potential projects .
Problem is how many projects we have for ''HODL'' ? Well less than %1 of the market .. I know maybe two or three but this is still risky you can get nothing after all that waiting .. been there done that   but i still think Hodl can work very well and remember this strategy has much less stress than others