RE: 💰 Profit Taking Is The Most Difficult Thing To Do In The World Of Crypto - Here’s A Method That Might Work For You Too

You are viewing a single comment's thread from:

💰 Profit Taking Is The Most Difficult Thing To Do In The World Of Crypto - Here’s A Method That Might Work For You Too

in cryptocurrency •  7 years ago 

Another option could be rebalancing. If one coin spikes whilst some are still yet to climb, you'd be overweight in that coin on your portfolio and a rebalancing would mean taking a few profits from that coin and buying more of those which are still consolidating. The general idea is capping each coin to certain percentages of your overall portfolio. Similar in some ways to what you're saying regarding taking partial profits, but for instance, if you have a 25% cap, then when a coin gets above 25%, you sell a portion until it's back to 25%. It's not for everyone, but like you say, it should suit your personal style as well. Anyway, another option to consider :)

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  

Definitely true and I think that is something you should always do. My strategy on that part is this: https://steemit.com/cryptocurrency/@cryptotem/the-70-30-cryptocurrency-investing-portfolio-approach-updated-v1-2

The above article is about really taking profits out of the space, something to combine with rebalancing :-)