Hi All,
All the Crypto experts are always banging on about selling high, which is in most cases is correct, but i don't really get how someone can lock in the profits.
If i sell, do i convert the coin back to BTC for profit? How does someone make profit because most of the time when coins dump so does BTC! so how does someone secure profits?
What do you peeps do? I'm slightly confused.
Thanks
This is by tracking your profit based from what you used in purchasing that specific coin or token. See the instances below to make things clear:
1. You bought 1 BTC for $10k, sell them back to USD when the price went up to $11k. 10% profit is not bad.
2. You bought 1 ETH for 0.1 BTC, sell it back to BTC when the price of an ETH strike to 0.15 BTC. 50% profit.
DO NOT sell based from USD alone:
If you bought 1 ETH for 0.1 BTC in which 0.1 BTC = $1k do not sell if the price of ETH is $1.5k if it's value in BTC is 0.09 BTC. This is a loss in terms of Bitcoin. It should've been perfect if you did not buy at all.
Good traders accomplish this by placing their sell orders based from their desired profit. Or by having a personal record of their purchases. Perhaps using notepad or a notebook.