Taking Profits - buy more BTC or put in bank

PrendK · February 19, 2021, 9:47am

Hi There,

I am very new in crypto - less than a week. I just watched Ivan’s video on taking profits - so when you sell small bits of profit on the way up and down a little - do you buy more bitcoin or put it in cash bank account?

Thanks,
Kate

JaneQ · February 19, 2021, 8:18pm

I sold with a view to buy the drop that didn’t happen🤷‍♀️ Now it has shot up so waiting it out.

Troubadour · February 19, 2021, 8:36pm

Hey Kate,

I would say that reinvesting during low periods would be your best bet for increasing your profit.

Since I live in the US, selling frequently will end up being a tax headache for me, so I try to hodl (hold on for dear life!) with my bit coin, and only add whenever the market takes a dip, only reaping my rewards when the benefit outweighs the cost, and even then, I would take out a percentage, say 15%, all at once and just let the bitcoin grow like the golden apple tree that it is.

I hope this makes sense

Here’s to your success,

Andy

PrendK · February 20, 2021, 12:34am

Thanks Andy - I am not taking anything off BTC or ETH
More if anything happens with the altcoins I got. Am thinking they are too risky now and will mainly do BTC and a bit of ETH.

MPer · February 20, 2021, 2:18am

I am very new too; but for a beginner it’s a very safe bet. Once you start to learn more, then you can start getting into other coins.

sekaligusz · February 20, 2021, 9:31am

I think BTC, ETH and let’s say ADA are long term investments. Like @Troubadour said, buy the dips. In my opinion, saving money on the bank is not rewarding at all. Like in The Netherlands we have negative interests…
So I would say, HODL

PrendK · February 20, 2021, 11:08am

Thank you - so if you make gains in alt coins sell and put into BTC
What is up with people saying ETH has high gas fees and other things on BNB like CAKE I think will be cheaper on gas fees. What are gas fees ?

PrendK · February 20, 2021, 11:09am

Hey Andy,

So do you keep a small stash for dips?

sekaligusz · February 20, 2021, 11:17am

Gas fees are basically the transaction fees you need to pay for a transaction to succeed on the ETH network (you are paying for the computation of executing a transaction). The argument is that the (gas) fees are so high on ETH that it is not worth it to do transactions. Coins like BNB can be seen as an improved ETH that solves the fee problem and one of the reason why it gained momentum.

Troubadour · February 20, 2021, 1:55pm

absolutely! Have some money in a stable coin, just so you don’t have to have to wait for bank to clear your transaction.

Rascus · February 21, 2021, 3:39am

Hang loose. IMO BTC is overdue for a big pullback. I have less than 10% exposure in BTC & Alt coins because of how I view the current risk/reward scenario. BTC may yet still hit the 60K-70K reqion but I don’t want to be caught in a building that’s collapsing and all the exits are on fire!

yasuke93 · February 21, 2021, 6:38am

What an interesting discussion! I have been wandering the same thing, buy more BTC or put in bank… However I have been avoiding the bank situation as the UK government is getting up to speed with all this and imposing capital gains tax!

I however also been avoiding converting profits into BTC/ETH because of the fees (I don’t trust to keep my crypto in exchanges). I am just at the beginning of educating myself in blockchain, I can’t wait to complete the introductory modules and get to DeFi! Perhaps some answers to all this lie in there

JaneQ · February 21, 2021, 1:31pm

Rascus I am of the same view . I am hanging loose and ready for the pull back. How far it will go I keep changing my mind on.

JaneQ · February 21, 2021, 1:33pm

Yasukes93 have you considered swapping it into a stable coin and keeping it safe on a cold wallet such as a ledger?

yasuke93 · February 21, 2021, 8:39pm

I have got a ledger already holding algorand and doge on it, I need to settle on a stable coin to pick, good shout!

Troubadour · February 22, 2021, 7:32pm

Whatever stable coin you choose, make sure its your baby, dai coin, usd coin. And tether coin are prime picks, if you’d like, I can send you some research for each.

Regards,

Andy

PrendK · February 22, 2021, 9:30pm

Thanks so much so if you are just getting in now - like this week - maybe hold off on ETH or invest people still seem to be talking about it.

PrendK · February 22, 2021, 9:32pm

When you put your money in a cold wallet (is that a ledger?) can you still see what you have on your exchange but would have to transfer back to trade?
For the dip do you hold money in your cold wallet or exchange ready to buy?
How many coins do people have I think I have too many.

PrendK · February 22, 2021, 9:33pm

Hi Andy,
Sure if you can drop some research in we would appreciate it.
Kate

Troubadour · February 23, 2021, 2:29pm

Sorry for the late response, school and work have been chaining me down!

Here are the best stablecoins right now:

Tether (USDT) Tether . $0.998789.
True USD (TUSD) TrueUSD. $0.993585.
Paxos Standard (PAX) PAX Gold. $1813.58.
USD Coin (USDC) USD Coin. $0.99272.
Binance USD (BUSD) Binance Coin. $247.51.

https://www.benzinga.com/money/best-stablecoins-and-4-types-of-stablecoins/

Each sort of stablecoin is backed by one of the following:

Fiat - backed stablecoins . …
Cryptocurrency- backed stablecoins . …
Commodity- backed stablecoins . …
Non-collateralized (seigniorage-style) stablecoins .

https://pixelplex.io/blog/what-are-stablecoins/

When starting out, It would be best (in my opinion) to start out with a coin that is based on fiat or commodities, and as your knowledge of the crypto market rises, you can be more confident in crypto/seignoirage backed coins, since the crypto market can be quite the rollercoaster.