How do you eat an elephant? One bite at a time.
-Desmond Tutu
I like crypto for many reasons. One is because of the money that can be made. But when it comes to taking profits, I see many of my peers making two big mistakes. First, some simply pack their bags and make a round trip right back to their starting price. I’ve
done this, and it was a bitter lesson. And second, some overly focus on locking a few monster trades, rather than booking and celebrating the many smaller gains available to them. Rome wasn’t built overnight, and neither is your wealth.
So, with the aim of achieving greater personal and financial freedom, I present to you the Ultimate Profit-Taking Guide. May it help you one day drop a fat down-payment on a new property.
Wealth Mastery (Lark Davis, and the Wealth Mastery writing team) are not providing you individually tailored investment advice. Nor is Wealth Mastery registered to provide investment advice, is not a financial adviser, and is not a broker dealer. The material provided is for educational purposes only. Wealth Mastery is not responsible for any gains or losses that result from your cryptocurrency investments. Investing in cryptocurrency involves a high degree of risk and should be considered only by persons who can afford to sustain a loss of their entire investment. Investors should consult their financial adviser before investing in cryptocurrency.
Start with Macros
The big picture. Macros are key to determining which assets you’ll buy, your time-frames, take-profit targets, and for knowing when to GTFO. So understand the following well:
Bitcoin’s Halving Cycle
The macro of macros. So far, three halvings have equaled three EPIC bull-runs, all culminating with bitcoin blowing its top approximately 1 to 1.5 years after each event. If the past is any indication, taking profits within this timeframe after the next halving is probably a smart move.
Broader Economic Conditions
Is the US and global economy growing or in a recession? Is The Federal Reserve printing or burning monopoly dollars? What about China? A tech boom or bust? This must all be factored into your analysis. Generally, if the larger economy has been enjoying an economic expansion (GDP growth, low interest rates, low employment, etc.), but you’re starting to see a shift towards stagnation or economic contraction, that might be a time for some profit-taking. Key events like a change in Federal Reserve monetary policy should be taken as warning signs.
State / Corporate Actors and Regulatory Developments Are these players moving into or away from crypto? How is the regulatory environment unfolding in major jurisdictions? While some cryptos might be inevitable long-term, these events can significantly impact short-term prices. IE China banning Bitcoin might be a good moment to book profits for the short term.
Narratives
What’s the prevailing crypto narrative? After DeFi, NFTs, gaming, and AI, you know another is just around the corner. And what happens
What’s the prevailing crypto narrative? After DeFi, NFTs, gaming, and AI, you know another is just around the corner. And what happens when these narratives take hold? People get crazy. NFTs trade for millions, metaverse games with 100 players are in the headlines, and random AI …
Hi! My name is Lark Davis!
I’m a cryptocurrency investor with years of experience and I’ve been making consistent profits in the crypto space.
I’m passionate about helping others do the same, so I run multiple educational channels on crypto investing.
