Crypto Profits: When to Cash Out (Before Your Money Does) 🎢

Remember that time your gran insisted on holding onto her Beanie Babies collection because they were "bound to make a comeback"? Well, at least she didn't have to watch their value update in real-time like we do with our crypto investments. Though I must say, her approach would probably have made her quite the crypto trader…

As someone who once held onto a cryptocurrency until it was worth about as much as a Tesco meal deal (British supermarket reference),
I've learned a thing or two about selling.

Much like knowing when to leave a British party (before someone suggests karaoke), timing is everything.

Here's 4 Important Tips About Taking Profits:

1. Stick to a Pre-determined Target 🎯
Set yourself a target profit that would make your accountant raise both eyebrows. Perhaps 20-30% for short-term dabbles, or 100% if you're in it for the long haul (roughly about as long as it takes to get through the NHS waiting list). Write this number down and stick to it like you would to the last Yorkshire pudding at a Sunday roast.


2. Rebalance Your Portfolio 📊
Much like the cupboard under your stairs, your crypto portfolio needs regular sorting. If one crypto starts taking up more space than your neighbor's overgrown hedge, it's time to trim it back.

For instance, if your Bitcoin disproportionately rises compared to other tokens (say, taking up 70% instead of your planned 50%), sell some off.
Think of it as giving your other investments room to breathe.


3. Keep Calm and Breathe 🫖
We Brits are supposed to be good at queuing and keeping our emotions in check. Apply this same philosophy to your crypto selling. 
When everyone's panic-buying like they were like the great toilet paper shortage of 2020, take a deep breath and stick to your original plan. 
It takes great restraint, but it's worth it.


4.  "Hedge Your Bets" & Take Partial Profits 🎲
Instead of going all-in or all-out (this isn't the last order at the pub), try selling crypto in portions. If your investment jumps 50%, consider selling 30% of it.
It's important to take regular profits so you're not caught out when the market suddenly drops.


Remember: The best time to sell isn't when your taxi driver starts giving you crypto tips, or when your cat walks across your keyboard and accidentally makes a trade. It's when you've reached your predetermined goals.

As the great Warren Buffett might have said if he were British: "The stock market is a device for transferring money from the impatient to the patient... and then to the tax man."


As always, none of this is to be considered financial advice.  I'm not a 'guru', I'm simply sharing my own experience to (hopefully) inspire you!