One of the most widely used items that we can use in both trading and investing in cryptocurrencies is the issue of save profit which is a simple topic and of course, many people do not know about it or do not implement it, and in practice, it often happens that people who do not implement this seemingly simple issue, easily turn their profits into losses. In order to better understand this issue, we want to explain this issue to you in the form of an example.
Suppose I have an asset of $1,000 and I put it in a cryptocurrency and after a period of time my profit is $500; Here are four general scenarios:
The first is that I am satisfied with this situation and withdraw my profit. The second is to reduce the risk and at the same time I take the risk, I take out the profit and I keep the original asset there, eventually it either becomes a profit or a loss. The third case that I suggest to you is: I take out the original asset and leave the profit; If it leads to a profit again, we have been able to make a profit on our own profit, and if we have made a loss, we have not lost much in this risky market. This is for people who are not at risk. Of course, each of these modes has its own application in its own time and according to specific circumstances and we can not say for sure which is good and which is bad. The fourth case, which of course can not be considered much in the discussion of save profit, is the discussion of Step by step buying and selling. When the profit is made, then it has probably reached the target, we withdraw part of our asset and we put our stop loss or loss limit on this target that we have left.