The importance of taking profits in crypto 💰🚀"
In the cryptocurrency market, taking profits is essential to protect your gains from extreme volatility. Many believe that "only those who sell lose", but this can be a costly mistake.
👉 Imagine the following:
- You invested R$1,000 in an asset that went up 100%. Now you have R$2,000. But, if it corrects 50%, the value drops to R$1,000 again. In other words, all the profit disappeared.
- Now, if the asset goes up 80% (R$1,800) and corrects 50%, you will only have R$900. This means that, even after the rise, you lost money.
💡 Moral of the story: Volatility can eat away at your profits if you don't know when to take them. Always have a clear strategy, such as withdrawing part of the profits in significant increases and reinvesting responsibly. Remember: profit is only profit when it is in your pocket.
1. $ADA Initial Purchase:
- You invested $1,000 buying the asset at $0.35.
- This resulted in 2,857.14 units of the asset.
2. Sale at the Peak ($1.18):
- By selling half of the asset at the peak ($1.18), you sold 1,428.57 units.
- This sale generated a total of $1,685.71.
3. Repurchase at Correction ($0.89):
- With the $1,685.71 obtained from the sale, you repurchase the asset at $0.89.
- This results in the purchase of 1,894.06 units.
4. Total Quantity After Repurchase:
- After repurchasing, you now have the 1,428.57 unsold units plus the 1,894.06 rewarded units.
- This totals 3,322.63 units of the asset.
If you had not realized the profit, you would still only have the initial 2,857.14 units. By realizing part of the profit and taking advantage of the correction, you have accumulated 465.49 more units! 🚀