Have a good take-profit and reinvestment strategy
The answer is YES if you want to grow your earnings. Investing in cryptocurrencies comes with risks, but the potential return on investment is amazing. However, if you want to make even more money from your investments, you need to find ways that allow you to take profit and then reinvest it. If you are wondering how to do this, we suggest checking out some of the options below.
Best Ways To Take Profits In Crypto And Reinvest
Spend A Part Of Your Earnings And Reinvest The Rest
Use a little portion of your crypto earnings before reinvesting. So you can cash out and keep 100% of your gains.
By securing your seed funds, you’re preventing future losses. Some investors wait until their returns reach their seed money to avoid future losses and continue investing. After withdrawing some gains, you can reinvest for the next bull run.
Invest In New Coins
Expert traders choose high-risk (and high-reward) coins and ICOs to make significant gains. Some traders utilise this strategy to retain large chunks of their portfolios in BTC, ETH, and Litecoin (LTC).
After making a profit on an investment, they repurchase it for less. A percentage of the gain can fund high-risk, high-reward ICOs and tokens.
If you traded 10 BTC and converted it to 15 BTC, you can invest the extra 5 BTC in a new coin or project that could yield 100x.
Pro tip: Do your research before buying an ICO. Feel free to reach out to me for further guidance.
Trading
Trading cryptocurrencies is one of the answers to how to attain financial freedom. Trading the cryptocurrency market can be a very lucrative business because of the high volatility. This is the perfect environment for day trading because during the day you’ll have enough up and down swings to make a decent profit. Trading gives you the flexibility to have profitable positions in both up and down markets.
If you use the right tools, trade responsibly, and develop a robust risk management system, you can make good profits from your trading activity.Therefore, trading crypto assets can become your main source of income. Reach out to me if you need help giving trading a shot.
HODL
If you have an extensive portfolio that doesn’t need a sale soon, HODL is an excellent strategy. Instead, you can stake your holdings to increase your wealth, which works exceptionally well if your chosen cryptocurrency is stable and profitable, like Ether.
Since ETH holders will soon be able to stake their coins, speculators are optimistic that the cryptocurrency will fare better in the next bad market. Even if the value of your crypto holdings decreases in terms of fiat currency, you will still be carrying the same bag.
P2P Lending
Peer-to-peer (P2P) lending is a safe way to invest and earn a constant return. It is essential if your wallet has a lot of cryptos.
P2P crypto-lending relies heavily on Ethereum’s smart contracts. P2P lending lets you loan your crypto for a 10% to 20% return. On Maker, developers and business owners can borrow ETH without selling their crypto assets.
Buy dividend stocks
Another great way to take profit and reinvest them is by buying dividend stocks. Many stock-trading platforms allow you to set up automatic investments that can be used for purchasing dividends, so you will have a small income every time the stock pays out dividends. You can use this money for further investment or simply hold onto it as a backup plan in case something happens.
Conclusion
Putting your money away for a while is the safest way to ensure it stays secure. You can turn them into stablecoins or cash, which you can store in a wallet or a regular bank account. Maintaining a savings account and putting away a portion of your earnings can help offset your losses and yield long-term returns.
