Unlike Bitcoin, which can relatively be held for a longer time, Altcoins require a precise exit strategy because if no exit is performed, there is a chance that the profits we gain can turn into losses. So, what is the take profits strategy for Altcoins?
#1 Moonbag Strategy.
Moonbag is a strategy where we sell 50% of the assets we own when the price has risen by 100%. This strategy can be executed so that we still have exposure to an asset when it rises, even though when that asset goes down, our capital is safe.
#2 Implementing Selling Grid.
Selling grid can be applied when an Altcoin reaches a certain psychological number. For example, we sell 25% of our position at $1, then 50% of the position at $2, and finally 100% of the position at $3. This can be done to maximize profit taking.
$3 Selling Strategy at End of Cycle.
Many also apply profits taking on Altcoins by realizing profits at the end of the cycle. In this way, they take a higher risk with greater profit potential. To master this technique, traders must be able to find the top of Bitcoin with the most precise exit, which is very difficult to do.
#4 See the Hype Peak for Take Profits.
Another strategy that can be applied is to see whether the hype has gone down or not by observing all the existing metrics. When a hype has decreased and weakened, we can take that moment to realize profits; when the hype is still there, we can still use that hype to enjoy price increases.
