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Alex Cho

Crypto Investors Avoid Quick Profit Taking

When investing into crypto, be wary of taking profits too quickly. Keep in mind, the percentage gains in the asset class tend to be much bigger when compared to other categories. There’s a delicate balance between greed, and pragmatism.

When compared to other assets, crypto tends to move much move quicker over the course of trading sessions. You may experience a 20-30% gain in a span of a couple days, which may prompt you to quickly take money off the table only to see the coin sustain its rally by another couple hundred percentage points over the course of months.

Hence, if you have decent profits, don’t trade them in too quickly, because the big move in the coin has yet to come. The confusing thing about crypto, is to recognize whether you’ve made a bad decision by selling prematurely.

When compared to stocks, which typically appreciate at a way slower pace, the crypto market creates a lot of head fake moments for sellers to quickly pounce on gains, while the steady hand tends to ride the bigger waves. Mistaking the small tide, for the big move is a common mistake, because the miniature trend looks like a big uptrend when compared to other assets.

Small price gains look large when compared to other asset classes, yet the small gains aren’t where you’re going to make substantial sums of money. You must develop a delicate balance between having patience and greed. Get greedy when you know you’re riding a big trend, and avoid succumbing to short-term decision making, so you can capitalize on those gains.

This is a lot harder than it looks, because if you’re too greedy, you could easily get caught-up in euphoria after a market has already rewarded you with 500%+ gains. On the other hand, if you’re too timid, you could close a position after making 50%, only to miss the next major leg of a rally where the coin shot up by a multitude relative to your initial entry.

Therefore, investing or trading crypto isn’t necessarily easy, but if you can recognize where you are in a bullish or bearish cycle, it’s easier to manage emotions, as you ride the market for an appropriate amount of time.

The key is to recognize the timescale you’re operating from, and if it’s going to take several months to reach your appropriate exit level then it’s obviously a bad idea to sell your coins after riding the initial 2-4-week wave.

If you want to learn more via video courses with my help, and the help of crypto millionaires, bitcoin foundation founders, and various other crypto pioneers who are at the forefront of news, information, and methodologies you’ve got to join the Bitcoin Crypto Mastermind program.

We also provide live events, one-on-one consulting, and private communities where knowledgeable experts, and experienced traders interact with each other, share ideas, and keep a level of inclusion that can be found nowhere else.

The program will remain open for a select period, so enroll as soon as possible.

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