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"The hardest part about crypto is figuring how and when to take profits or cut your losses.
While the optimal strategy ultimately depends on your personal situation and the cryptos you hold, there are a few important things to keep in mind that will help refine your personal strategy.
Today we go through these pointers to help you figure out how and when to take profits or cut your losses, and use two cryptos as examples to help you out. Enjoy!"
~ Coin Bureau
This video explains a strategy for taking profits and cutting losses in the cryptocurrency market. It suggests that the best approach depends on an individual's personal circumstances, such as their time horizon, wealth, risk tolerance, and tax jurisdiction. The video breaks down the process into four steps: understanding the market cycle, deciding whether to sell early or late, determining the amount to sell, and deciding what to do with the proceeds. It highlights that the crypto market operates in four-year cycles and that it's nearly impossible to sell at the perfect time.
The video suggests different strategies for Bitcoin and altcoins. For Bitcoin, which is nearing the end of its bull phase, taking full profits may be a good idea. For altcoins, the video recommends taking partial profits at different resistance levels to avoid selling too early. It also suggests that the same methodology can be applied to cutting losses. The video concludes by cautioning about the risks associated with rotating capital into other assets, like stablecoins, and mentions that long-term investors have historically opted to gradually buy assets like Bitcoin or gold.
0:00 Intro
0:51 Crypto Cycle Context
4:23 Setting Targets To Take Profits
8:43 Taking Full Or Partial Profits And Losses
13:21 Where To Rotate Capital
Source - Coin Bureau YouTube: https://www.youtube.com/watch?v=vW5oe9xxaC4
Disclaimer: This video is provided for informational purposes only, and not offered or intended to be used as legal, tax, investment, financial, or any other advice.
