My profit taking strategy while riding the hype of the current crypto bull run
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 earn profits across different cryptocurrencies. This approach ensures that I am not overly dependent on the performance of any one asset. At the same time, some assets that are unproven but also showing profits, will help me take profits while keeping more valuable assets.
3. Reassess assets periodically
Market conditions can change quickly. Regularly reassessing my positions allows me to adapt to evolving market trends, identify opportunities to take profits or adjust my strategy. Making moves here and there keeps me updated and gives me a positive feeling that I'm not letting this bull cycle go by around me.
4. Remain disciplined and don't overdo it
Emotional discipline is very important in the crypto world. While it's tempting to get carried away by the hype, sticking to a predetermined profit-taking plan helps me avoid impulsive decisions that can lead to regret. Even so, I increased the selling price and adapted to my belief that the market will grow, but I still have a plan for it.
I think this is the most active point I've taken to navigate this bull cycle and not let myself get left behind. The important thing is not to overextend yourself in the short term, but also make sure you take advantage. The crypto space changes like a living organism and we expect it to do as it has in the past, but we can make judgments based on market conditions and other factors surrounding it. And while we expect the summer to see a dip in interest, along with Bitcoin's halving and the potential approval of an Ethereum ETF, we should prepare for a hot summer. Therefore, in my view, while I may gain some profits during this process, I plan to continue accumulating them through the summer and after that start executing most of the projects I'm involved in. And once I complete this cycle, there is only one thing left to do.
Sell high, buy low, repeat!
