Most of us from here and beyond are simple amateur crypto enthusiasts and we are trying to navigate as best as possible the exhilarating waves of the cryptocurrency bull run while maybe having also a plan for taking some profits. The recent surge in prices has me on the edge of my seat, eagerly anticipating the gains that may lie ahead while thinking also that I might deviate from my yearly based plan. The bull run shows its force, and my portfolio is riding the upward momentum like a surfer catching the perfect wave. However, in the midst of the excitement, I am keenly aware that strategic profit-taking is key to maximizing gains and securing financial success. One could sell and buy back in waves and propel itself into a better position. Unfortunately I don't have the nerves for doing so while the market might move into the opposite direction. So, I am trying to adapt to what's happening in the current bull run and plan to maximize my exits, even if those moved on from my initial plans. But that's adaptability to current market conditions and also an understanding that this bull cycle is different from previous ones.
The crypto world is buzzing with hype, and I find myself caught up in the euphoria of surging prices. Whether it's Bitcoin hitting new all-time highs or altcoins making significant moves, the energy in the market is positive and palpable. As I watch my portfolio grow, the temptation to hold on for dear life intensifies, fueled by the belief that crypto prices can soar even higher. Thus my profit taking strategy based on previous ATH is somehow on hold, while having some specific assets that I am watching where I will exit more easily than compared to others.
My strategy of profit taking
Amidst the hype, I understand the critical need for a well-thought-out profit-taking strategy. While the market is unpredictable, securing profits at strategic points can safeguard gains and mitigate potential losses. Here are some key considerations guiding my profit-taking approach:
1. Set clear targets for selling
I've established clear profit targets for each cryptocurrency in my portfolio. These targets are mostly based on previous ATH, but on some which didn't prove themselves I might sell even at a lost. I have already put some SELL ORDERS for some of the asset and wait for the price point to be matched.
2. Diversification of assets helps
Diversifying my portfolio allows me to spread risk and capture gains across various cryptocurrencies. This approach ensures that I'm not overly reliant on the performance of a single asset. In the same time some assets that didn't prove themselves but which are also showing profits, will help me take profits while holding for more precious assets.
3. Regularly reassess the assets
Market conditions can change rapidly. Regularly reassessing my positions enables me to adapt to evolving market trends, identifying opportunities to take profits or adjust my strategy accordingly. Making movements here and there keeps me update and gives me a positive feeling that I don't let this bull cycle pass around me.
4. Remaining disciplined and not over-hypes
Emotional discipline is crucial in the crypto space. While it's tempting to get carried away by the hype, sticking to my predetermined profit-taking plan helps me avoid impulsive decisions that could lead to regret. Still, I am upping the selling price points and adapt to how I believe the market will unfold, but I still have a plan on it.
I think these are the most active points that I am doing to navigate this bull cycle and not have me left behind. The important thing is not to push the trigger to soon, but also ensure you are taking profits. The crypto space is changing like a living organism and we should expect it to play out like in the past, but we can do assessments based on the market conditions and other factors that surround it. And while we expect in the summer to have the interest rest decreased, together with Bitcoin halving and potential Ethereum ETF approval, we should prepare for a hot summer. Thus, in my view, while I might grab some profits along the way I plan to keep on accumulating until the summer and afterwards start pulling the trigger on most of my projects I am involved. And after I will finish this cycle it remains for only one thing to do.