Should you take a guaranteed profit?
When we started to see Bitcoin pushing towards 20k last month and all of the signs led to a bullish couple of months in the crypto market I decided to put just a little bit more cash into crypto.
Now since I already have put too much in over the past couple of years I took the really lazy way out. I did it on revolut. The thinking here is that the coins on revolut are the first point of access for millions of people as soon as the feel the FOMO of a bull run and want to buy some crypto.
It only has 4 options with Bitcoin, Litecoin, Ripple and Stellar on the app. You don't own the crypto and there is not much point in buying any other than pure speculation. The upside however is that as soon as people start seeing a new pump coming in and want to buy that this is the easiest access for new people and doesn't involve exchanges or KYC.
It just needs some money and a curiosity to get involved and buy your first crypto. This just said to me that in a bull market that these will be guaranteed a hard and fast pump as the company needs to buy the tokens and match what is bought on the app.
It could spell hundreds of millions hitting their market cap in a very short space of time as regular people want a piece of the action. If you don't know anything about crypto they are a good place to start and most people don't realize at the beginning about the importance of keys and ownership until they delve a bit deeper into the world of crypto.
I happened to have $400 sitting on the account and put it into ripple just before the pump. Doubled up on it and used that to buy $800 of Stellar as it was one of the only top cap coins that hadn't moved much. It hit a pump straight after for a short patch but then started to fall sharply so sold that on at $0.18 for almost double again.
At this stage I said fuck it and sold it all for Litecoin since it was the only one left that hadn't moved very far. With Litecoin catching a serious run it's pushed my revolute over $2k and still going.
Not bad for three weeks playing on my revolute app but now we are in dangerous territory.
I could walk away with over $1600 profit in the current prices but I think that the market is far from done. While we have hit a nice run over the past few weeks, i haven't seen the FOMO and panic buying of the last bull run and think that we can hit the same heights as before.
But there is no guarantee and it's not often that a bet comes in for this amount of profit.
Where do you make the call to sell and or how far do you push your luck?
There has always been a point in gambling where you should know when to walk away from the table.
Personally, I think that setting a sell order at $200 for Litecoin is my selling point and take a nice $4k profit. In Dec 2017 it hit an ATH of $355 so $200 is well in range and we are only at the start of the bull run. It's important to take a profit and not get caught the same as last time round holding an empty bucket.
These are the hard calls to make as every dollar counts in life so knowing when to take a profit is a vital skill especially in crypto.
What do you guys think?
What is the best play in these situations?
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