Dogecoin/crypto noob selling question

[sh00ter]

Forgive the noob question but I'm not a numbers guru.

If I buy a certain amount of coins and the price goes up and I make a profit, and then I see the price dropping, if I want to take the profit i made, do I sell 100% of the coins and convert to cash (which would include the initial investment cash and the profit combined), OR do I just sell some the coins to retain my profit?

I am just not clear if I want to use this to supplement income and not as a long term investment, what others do. I know nobody can predict what the market will do in advance, I am just saying when it goes up, what is the best process to pocket the profit and then later buy back in when it goes down?

Let's say you bought in at 1000.00 and a few days later you had 1250.00, how do you retain the 250 profit? Sell 250 worth of coins, or sell all of them?

Thanks!

 

[harley128]

In the above example, if you sell $250 worth of coins , then your "realized" profit would only be $50...........

You would have to sell all of them to make $250 profit...

But, you've got to consider any fees that might be charged as well---those eroding that profit.

 

[Rez Exelon]

Full disclosure that I'm not invested here. But from what I see, most short term fluctuations are in the 3-7% range week over week --- at least since I've been paying attention. Let's say you bought in low @ $1000 and then sold high @ $1070. You'd have to sell everything to get the $70. Most trading apps are at $3-5 bucks for each transaction so to make math easy, that puts you at $60 profit for the week.

The reason I'm not invested there is that I just don't know if i like the risk/return ratio on that because there's other ways to turn more than $60 profit in a week without that much risk. It's not out of the question for me, but I just don't know that I personally am quite ready to jump there yet.

 

[sh00ter]

Well my issue is, I don't have the capital to buy the expensive stuff. I like this coin because the cost is still low per coin.

But crypto seems like a way to really earn a few extra bux per week so that's why I am giving it a shot.

I also got some bitcoin fractions on the dip and am investing in that as well as a more long term strategy. But the people who do well seem to buy the coins a a very low cost and then reap the rewards when they shoot up...either that or just take the 25% profit per week (in my case w/ doge). But that is an extra grand per month...not bad for an experiment, but I haven't sold because I wasn't sure how to realize the profits.

So then, lastly, if I sold it all and took the ~250 minus tax & fees, would you then just go right back in with a 1000 and repeat? Or do you wait and see if it drops or what? That is the other part I am not clear on, once I take a short term profit, do people then buy back in and if so, do they take all the initial seed money AND the profit and buy back in, or do they use the profit as income supplement and only buy back in with the seed money? Just can't get it straight in my head so thx for helping me understand it better.

 

[Rez Exelon]

Well my issue is, I don't have the capital to buy the expensive stuff. I like this coin because the cost is still low per coin.

But crypto seems like a way to really earn a few extra bux per week so that's why I am giving it a shot.

I also got some bitcoin fractions on the dip and am investing in that as well as a more long term strategy. But the people who do well seem to buy the coins a a very low cost and then reap the rewards when they shoot up...either that or just take the 25% profit per week (in my case w/ doge). But that is an extra grand per month...not bad for an experiment, but I haven't sold because I wasn't sure how to realize the profits.

So then, lastly, if I sold it all and took the ~250 minus tax & fees, would you then just go right back in with a 1000 and repeat? Or do you wait and see if it drops or what? That is the other part I am not clear on, once I take a short term profit, do people then buy back in and if so, do they take all the initial seed money AND the profit and buy back in, or do they use the profit as income supplement and only buy back in with the seed money? Just can't get it straight in my head so thx for helping me understand it better.

You can pretty much get any coin fractional from what I understand, but I'm no expert.

To your question about reinvestment, that becomes less of a question for the coin market and more a strategy question. If you were selling high to get the profit, then you probably certainly wouldn't immediately reinvest. Because if you thought the market was going to keep going up, you'd just leave it parked until you figured it was going to drop. Second part of that would be that you'd want to (try) to time the buy back in to a market drop. So that could be an unknown time from the time of the sale. Third part would be a personal decision about whether you want to play with the original 1000, or put it all at risk again, and that's entirely a person to person question I think.

 

[harley128]

Well my issue is, I don't have the capital to buy the expensive stuff. I like this coin because the cost is still low per coin.

But crypto seems like a way to really earn a few extra bux per week so that's why I am giving it a shot.

I also got some bitcoin fractions on the dip and am investing in that as well as a more long term strategy. But the people who do well seem to buy the coins a a very low cost and then reap the rewards when they shoot up...either that or just take the 25% profit per week (in my case w/ doge). But that is an extra grand per month...not bad for an experiment, but I haven't sold because I wasn't sure how to realize the profits.

So then, lastly, if I sold it all and took the ~250 minus tax & fees, would you then just go right back in with a 1000 and repeat? Or do you wait and see if it drops or what? That is the other part I am not clear on, once I take a short term profit, do people then buy back in and if so, do they take all the initial seed money AND the profit and buy back in, or do they use the profit as income supplement and only buy back in with the seed money? Just can't get it straight in my head so thx for helping me understand it better.

If I had the answer to that last paragraph------then I would be a very wealthy man!! I don't have the answer on when to buy the dip.......
I think that's the part that equates to "gambling".............in my opinion.

 

[sh00ter]

Well thanks guys, I guess I'd have to either stay in for the long haul, or take short term profit and then wait until it dips again and buy back in. At that point, I would either have to use original seed money and hope for a similar profit, or like you say, bet more. However, if I bet more, then I guess I have the potential to lose the original profit and makes it a wash or worse. It probably comes down to how I want to use the profit. My neighbor does crypto to save money to buy new guns. Or he does short term profit on doge and then uses only the profit to buy more bitcoin fractions...that is probably smart but I'm smart enough to know in that regard.

 

[Rez Exelon]

Well thanks guys, I guess I'd have to either stay in for the long haul, or take short term profit and then wait until it dips again and buy back in. At that point, I would either have to use original seed money and hope for a similar profit, or like you say, bet more. However, if I bet more, then I guess I have the potential to lose the original profit and makes it a wash or worse. It probably comes down to how I want to use the profit. My neighbor does crypto to save money to buy new guns. Or he does short term profit on doge and then uses only the profit to buy more bitcoin fractions...that is probably smart but I'm smart enough to know in that regard.

Personally I make more side money than anything taking Walmart clearance stuff and flipping it. Pretty easy and almost no risk... if I get stuck with something then I at least have something tangible to be stuck with.

 

[sh00ter]

Personally I make more side money than anything taking Walmart clearance stuff and flipping it. Pretty easy and almost no risk... if I get stuck with something then I at least have something tangible to be stuck with.

Interesting idea but seems like some work; do you use CL, OKS classifieds, ebay or what? Also too bad they don't have clearance ammo LOL.

 

[Rez Exelon]

Just depends what it is to be honest. I've sold on all of the above, facebook, direct to friends, etc. They do actually have clearance ammo and guns from time to time. I don't limit to Wally World though....I've got several channels to find cheap stuff to flip. Walmart is just an easy one and I can hit a lot of them when I travel for work.