How to Handle Positions in Potential Coins?
How should newcomers in the crypto world manage positions in potential coins?
When you have identified a coin with great potential, never sell it all at once. You should gradually reduce your position during the upward trend while keeping a certain amount as a base position to continue participating in the potential upside.
For example, if you buy a token when its market cap is 5 million, you can sell 10% when it rises to 50 million, sell another 10% when it reaches 100 million, and then sell another 10% when it hits 250 million. This way, you gradually lock in profits while retaining enough exposure for further upside potential.
It is particularly important to note that the upward potential of a potential coin may far exceed your imagination, so make sure to keep a portion of your position in order to gain greater profits during future surges. Continuing with the previous example, suppose you have sold 70% of your position by the time the market cap reaches 500 million, but decide to keep the remaining 30% until the market cap reaches 3 billion before selling. Then, if it indeed rises to 3 billion, the profit from that remaining 30% could exceed the total profits from all your previous incremental sales.
This is precisely the significance of the “incremental selling” strategy: to reduce risk by gradually locking in profits while retaining a portion of your position to participate in potential larger gains.
When facing potential coins, patience and strategy are often more important than short-term gains, because once you seize such an opportunity, it could fundamentally change your investment outcomes.
As a seasoned investor in the crypto world, I share my experiences and insights. Interested in the crypto world but don’t know where to start? Follow me and check out my profile to achieve freedom in this bull market.