When the price of the cryptocurrencies you own increases, you have multiple options depending on your investment strategy and goals.
These are things you can do:
1. Take partial profits:
• Sell part of the cryptocurrencies you have and recover the invested capital, to keep the rest and benefit from potential future profits.
Why?
• Reduce risks.
• It guarantees that at least the basic amount will be returned to you.
2. Complete sale:
• If you believe the price has reached its peak and may drop soon, you can sell all the coins.
Important note:
• Check technical analyses and news to ensure that the market is not experiencing a temporary surge.
3. Holding (HODL):
• If you believe in the project long term and see greater growth potential, you can hold onto the currency.
This option is suitable if:
• The currency has a solid foundation and positive news is coming.
• It has not yet reached the target price you set.
4. Modifying the strategy:
• Use the profits obtained to redistribute your investments toward other promising projects.
Why?
• Diversify your portfolio and reduce risks.
5. New market analysis:
• If you notice a sudden and unjustified increase (pump), be careful not to manipulate the market or create false expectations.
Advice:
In this case, selling partially or completely can be a wise decision.
6. Pay taxes (if any):
• If you are in a country that taxes cryptocurrency gains, make sure to set aside a portion to pay taxes and avoid legal issues. (Because there will be)
Conclusion:
• The most important question you should ask yourself is: Is the current price justified considering the project behind it?
• Plan your moves based on your goals, whether they are short or long term.
• Avoid being swayed by movements or thoughts without foundation.
• Spending 48 hours studying a cryptocurrency will yield much more benefit than buying at the highest price peak.
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