In our last session, we discussed how I make a profit in the crypto market. When you invest your money, where to take profit and how much loss to bear all depends on your own strategy and risk tolerance.
No influencer, YouTuber, or social media activist knows your portfolio or understands your emotions. That is why it is very important for your own mind to be completely clear about your budget—
how much you want to allocate to the crypto market, and how much loss you can handle without it badly affecting your personal life, social life, and mental state.
That is why you must have often heard people say to always invest money that you do not need, and never even think about investing borrowed money.
These are not just words; they are the reality because the crypto market is a highly volatile market. But most people treat it like a 9-to-5 job, and when the results turn out against their expectations, they get mentally disturbed.
Now, let me share what I do. Let us take an example: if I bought Bitcoin at 55K in the spot market, I mostly try to make sure that if I bought 20 dollars worth, I can take my 20 dollars back out.
Another strategy I use is that as soon as the price goes up from my buying price—meaning my 10 dollar item becomes 12 dollars—I take my profit. I withdraw those 2 dollars and leave the remaining 10 dollars alone.
If the market goes up further, I do not regret that I took my money out too early, and if it goes down, I am not worried either because I already booked my profit, and if it drops further, I can buy more from the bottom.
This is a general strategy that I keep applying. But again, every person is individually bound to manage their portfolio themselves.
It does not work where someone says a certain coin will go up to 2 dollars, so you just keep holding until then. Instead of taking your profit based on their word, you might end up waiting for the price to reach 2 dollars, and right in front of your eyes, your coin turns your profit into a loss and drops below your buying price before ever reaching 2 dollars!
its not financial advise , its just my journey in crypto