How to take profits with bitcoin and altcoins

Introduction

Cryptosauros I am an Expert we're all experts so in this blog I want to talk about something very important and that's how to take profits we get asked us all the time newcomers that's in the space that can't believe. How much money they're making with bitcoin and all coins so they're worried they want to know. What is the best strategy in terms of how to take profits from your gains so that is what this blog is all about I’m going to break it down very simple for you reader? We did want to warn you there are some implications to it to profit-taking so you got to be careful but otherwise it's a pretty simple concept. You never get hurt taking profits to remember that you never get hurt taking profits you could lose on potential gains. But you don't get hurt by that well not maybe emotion emotionally a little bit but it doesn't hurt your pocket.

Bitcoin Update

bitcoin is down 20 000 again. I’m actually quite surprised I'm actually really surprised that we didn't see some kind of big movement today right ever since about a week ago going to this weekend till now you could see that bitcoin is really caged up like a caged. It wants to break up right this coinbase ipo causing a lot of enthusiasm a lot of people very very excited so i mean this is the time this is the time to be moving right so we'll see tomorrow we got one more day before the ipo let's see if we get some excitement tomorrow but in the meantime a lot of the all coins are doing very bad so you can't really be complaining right all coins have been on fire especially some of the ones i've talked about before with let's say binance coin cool coin shares cocoon token i mean even xrp um and others you know that have gone up so much within the last week or so and then you go back last few months man forget about it you have 5x 10x uh all over the place right and this is all while bitcoin has been stagnant but its time will come its time will come and uh and there's gonna be much much more gains to be had that is why taking profits is actually pretty important knowing how to do it is very important all right uh before i get started I don't want to give you guys a reminder about my giveaway five youth giveaway and now.

Profit Taking Explained

What profit-taking means but to dumb it down as simply as possible it's just you locking your gains basically if you made some paper gains with crypto with bitcoin or all coins it's time to lock. some of that gains right through profit taking so easy example you bought bitcoin at 100 now it's at sixty thousand dollars well if you sell one bitcoin you're gonna make fifty-nine thousand nine hundred dollars you can go put that in your bank right that is profit-taking now. Before you actually sell to cash which I know a lot of people do not want to do it's very unpopular right now to have a lot of cash so it's very unpopular to take profits and actually hoard a lot of cash at this point I get it but still keep in mind while these gains are locked in right now with your crypto you know essentially they're still paper gains until you could actually use it and maybe one day yes that's gonna be the case we're just gonna all use crypto and bitcoin but for now, cash is still important right so essentially that is what profit taking is now what is the strategy it's actually really really quite simple it's really really simple number one and this is actually the most important if you do this if you at least follow this first step you really don't have to follow any other steps afterward I mean honestly that's how important this first step is and how crucial it is okay so keep that in mind and this pretty much sums it right away.

 Take out Initial Investment

This reddit post double my money take out my take out initial investment question mark yes that sums it up and the question i mean the answer is yes the answer is yes this is the number one rule for profit taking and if you follow this is no way zero chance that you could be burned okay and let me explain so like my example before with bitcoin i know it's unreasonable because i said buying at a hundred very few people bought a hundred but just to make it simple you buy bitcoin you buy any crypto at 100 and now it is at 200 so you doubled your money so what do you do then well you take out your initial investment meaning that you take out your original hundred dollars so that way if if the remaining amount goes down to zero somehow let's say the naysayer is right bitcoin goes to zero or all coin goes to zero it doesn't hurt you you already took out your initial investment right that is why this number one rule this number one profit taking strategy i should say is the most important of all this is the number one thing whatever you put in if you take out that exact amount right that means your net zero the remaining amount if it goes to the moon great you could ride it up to the moon forever and you can make a lot of money with that but if that whatever you're riding goes down to zero it crashes hard and goes to zero like a lot of still some people say you won't be hurt by it because you already took out your initial investment right so that is why this is that important and like i said if you don't follow any other profit taking strategy out there this is the one to follow this is the most important and you could simply follow this and not follow any other strategy that's how important this is hold on one second okay i'm back i'm back all right hopefully you guys got that right hopefully you guys got that take our your initial investment that is rule number one now rule number two is really up to you with whatever amount that you have riding you know that 100 left remember the 100 example it goes to 200 you take out 100 so you still have 100 left right and i'm tying my 100 in bitcoin or all coins or whatever you may be holding you could simply ride that to the moon right if you do believe that the project you're holding is going to be the future or it's bitcoin and it's going to be the ultimate store value you can simply hold that forever you could do that but many won't argue well that's probably not a smart move so many many will argue you still need to take profits along the way and that is when you set a strategy for yourself and there's really no right or wrong if it goes up 20 or 30 percent you could take down you could take off a little bit off the table if it goes up 50 or 100 percent you could take a little bit off the table right so it's just a matter of what you're comfortable with setting a schedule for yourself to take some off the table while things keep going up again if you wanted not to do any of that you could just let it ride to the moon right as long as you took out your initial investment you can't be burned right the worst case scenario is whatever your riding goes to zero then you start over from scratch but you weren't hurt by it right but um i think this profit taking schedule that's important as things go up and up and up and a lot of you guys are seeing 100 200 500 000 gains within a very short amount of time and i know a lot of people are feeling antsy about it should you take profits this is what you should do just basically set a schedule yourself and take some out for you for you know just to prepare yourself right in case things go down you can utilize that to buy back in buy at a lower price there's a lot of things you could do with that now a lot of people also ask me hey when you sell.

Sell to USD or Stablecoin

Do you sell to USD or do you sell to say a stable coin like usdc or usdt that is really up to you it doesn't really matter it just matters what exchange you're using if you're using coinbase or gemini you could sell to usd if you're using Binance or kucoin you could sell to usdt or usdc right stablecoins are supposed to be locked in a dollar so even if there is a market crash usdc usdt will stay at a dollar right same thing with the usd they're all you know the stable coins are back but basically to or pegged I should say uh back and pegged to the usd so whether you cash out the USD or usdt or usdc it really doesn't matter however okay that all sounds good but there is something that you need to worry about whenever you're taking profits in fact?

Taxes

You make a trade there is something that you have to remember and that is unfortunately crypto taxes and this is something that no one wants to talk about no one wants to talk about no one wants to recognize it but it's very important because the irs and other tax agencies are coming down on crypto hard especially the exchanges so the crypto tax like the laws right now at least in the us is really a mess so let me let me cover exactly what counts as a taxable event or a capital gains event okay whenever you sell crypto for fiat that counts as a capital gains event every single sell so when you do take profits you have to worry about taking you know paying taxes on your profits yes it sucks but that's what the tax code says also this really doesn't make sense using cryptocurrency to purchase goods and services right a lot of you guys want to buy things directly with bitcoin like a tesla for example that also counts as a taxable event and lastly trading or swapping one asset to another either on exchange or peer-to-peer is also a taxable event so meaning if you trade for usdt usdc or you sell to usdt usdc or you sell to eth or you sell to xrp or you sell the bmb whatever whatever it doesn't matter if you make any kind of trade with any kind of crypto it's a taxable event also so just keep those keep those in mind right so there are things you have to worry about and it's a big big big mess but yes every single thing that you do besides just buying and holding you know that's not a taxable event until you sell it but everything else is a taxable event and this includes includes air drops you know how everyone loves to get free air drops those are taxable interest earnings staking interest from d5 projects they are taxable uh mining income you know when you mine right you might eat you mine bitcoin those rewards are taxable liquidity pools like you know yield farming pools nft pools that you're getting rewarded from those are taxables so yes everything that is basically uh basically money earning or interest earning or whatever uh they're all taxable just just keep that in mind and i'm making this point right now because in the us we're we're entering like the last month so that's why this is important that's why this is important all right so besides text let me give you my bigger picture here okay my bigger picture so besides rule number one and that is to take out your initial investment okay and rule number two or strategy number two is basically setting a schedule for yourself to take profits right um but you may not want to follow rule number two you may just want to ride it to the moon right but let me give you my broader overview of this bull market right now.

Bigger Picture

we're in the fourth year 2021 of a four year cycle and the last year is always the most bullish 2021 is going to be the most bullish year uh versus 2020 2019 and 2018 right and the reason for that is because we're coming off of a having event and this year is very different because of this list michael strategy and tesla and square and everyone else that fomo into bitcoin and causing the demand to skyrocket which this never really existed before before it was always driven by retail investors now you have institutions a public trade company that's fumbling plus the fact that yes we're in the last year of a four year cycle right so if you look at this this is what i'm saying that bitcoin has a lot more room to grow a lot more room to grow we're not even really halfway if we were in june or july or august i would say yeah we're probably halfway but right now we're nowhere close and and because of these big guys you know what this may never end this may just flatten out and we continue up and up and up as the demand increases and as the supply decreases we could go through a four-year cycle we could we could be in a super cycle we go beyond this four-year cycle and just go into a massive super cycle so here's my broader view is basically right now for me at least for me i'm not so worried about aggressive profit taking i'm very let's just say loose with it initial investment i already took that out a long time ago i took some profits along the way but for the most part i'm just holding you know taxes basically is a pain i don't wanna the less tax i have to deal with the better but also i believe bitcoin has a lot more room to grow a lot more room to grow which is why i'm not having a very aggressive profit-taking strategy right now however with that said once we get into the latter half of the year let's say october november december and something fundamentally changes then i will evaluate and i will let you guys know what i plan on doing whether or not i'm going to take a lot off the top and we'll take a lot of profits in anticipation of maybe a down cycle or something like that or if there's some other kind of event that will ultimately change the landscape until then you know i'm going to take it easy and we'll let for the most part let things ride out because i think there's just so much room to grow and if bitcoin continues to grow and you could see it's right on track i drew this in february of 2020 february 2020 i have not changed these arrows i didn't just redraw them no i drew these in february 2020 and even though yes i was very wrong over here when we had a dip you could see how accurate it is right now we are literally following this right now and if this comes true bitcoin will be at 400 500 000 by the end of the year right so there's still a lot of room to grow for bitcoin and that's the case if that's the case the bitcoins will go up literally eight to 10x from here there is going to be enormous gains for all coins all coins are going to skyrocket to the moon and beyond the moon and go to mars right so that's how i view it bitcoin will always carry the market and a bitcoin has more legs you know to keep going so will the entire market so that's what i'm looking at and take a look take a look at the bt's dominance it went down even lower yesterday I talked about bt diamonds i'd create a whole video about it and how you could use that as an indicator or pattern of whether or not we're in all altcoin season whether or not we've topped out and so forth right look at it it went even lower and that's because you have crazy gains with binance coin that is above 92 billion now closing at 100 billion i said it i said it all along i'm like look at it binance going to be at 100 billion pretty soon and then that gap really narrows between ether and binance coin and that's happening now but even xrp which i folded i'm like it's irresponsible not to have some xrp at this point your portfolio and it continues to go up too and today you have also you know swat that's pumping up like crazy 21 among other crypto that is also doing very well which is why bitcoin dominance is coming down and all coin dominance is actually increasing right so so yeah there you go so uh my my broader view my overview. I guess is that you know i think there's a lot more room to grow right but with that said there's going to be volatility it's not going to be a straight line up we have seen volatility we have seen things come up and down and so forth right so i know a lot of people don't want to think about profit tanking ever not even taking out initial investment but i would say if you don't follow any other rule any other strategy at least follow number one.