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Published on: 07 Feb 2017

How to make profit during a cryptocurrency / Bitcoin (BTC) / Ethereum (ETH) / ICONOMI (ICN) rise

Since a few years I am a passionate follower and investor in Cryptocurrencies.

I started with Bitcoin (BTC), made some profit, found Ethereum (ETH), made even more profits and am now invested in ICONOMI (ICN).

Crypto is exciting and a booming, fast moving market. It moves up fast and hard, crashes again, but in general in a uptrend...

But what is a smart way to take profit?

After some painfull mistakes, the biggest around the DAO hack with Ethereum (I had invested a lot in the DAO and ETH, should have taken more profits during the rise before the hack), I started looking for a good strategy to:
Take profits during a crypto rise, but not sell too much too early (nobody knows where the top is)

The main issues:

  • you never know where the top of a bull run will be
  • most of the time you are selling too early or too late, both feel bad
  • this stuff is addicting and much like gambling, this will often result in emotional and bad decisions
Any Screen Size - Where is the top? Bitcoin chart

Stop guessing where the top is!

A better strategy is to stop guess and start taking profit.

In this great post (SSS) - A Sane and Simple bitcoin Savings plan if found my perfect stategy:

  1. pick a starting price for your crypto - e.g. 0,001 ETHBTC
  2. choose a % of price rise - e.g. 10%
  3. choose a % of your holdings to sell - e.g. 3%

What this basically means:

Sell 3% of your current BTC holdings after every 10% rise

Why is this great?

Selling a % of your holdings every fixed % rise provides you key things:

  • regular profits
  • a system to stick with (reduce stress and emotions)
  • keep holdings should a crypto truly go to the moon (since you sell 3% of every new total, you sell less every time)

In my example below I sell 3% of my 100 ETH after every 10% rise

IF ETH goes from:
0.01 ETHBTC ($10,53)
to:
0.01948 ETHBTC ($20,52)

We will end up with:
80,80 ETH left and 0,2744 BTC
a total of 1,849 BTC ($1946,85)

A nice and balanced strategy in all, of course you can adjust the % to your wishes!

Download my free Google Spreadsheet

I created a basic spreadsheet:
SSS - Sane and Simple Bitcoin, Ethereum, ICONOMI and other cryptocurrency Savings plan

Open the Google Docs

Many thanks to

rpietila from Bitcoin Forum, his post (SSS) - A Sane and Simple bitcoin Savings plan is the base for my chart.

YoloFarts from TradingView chat for giveing me great tips and pointing me to the SSS plan.


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