Have you always wondered and pondered when is the right time to take profit in the crypto space?
If you have been in the crypto space for a long time then I am sure such a thought might have crossed your mind at least once and more so if you are on a blogging platform like Hive.
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I ask this question because sometimes it is difficult to determine the exact time to take profits especially f you did not invest physical cash into a blockchain social media like Hive! Let me explain.
Regretful Story
I was chatting recently with a friend who was an Admin with the currently defunct Uptrennd, I know most of you heard of Uptrennd a few months back.
For starters, Uptrennd was a new centralized social media site that attracted mostly people from third world countries.
It worked similarly to Hive whereby posts would be written and people would upvote them.
Lots of people joined the platform and earned some crazy money until it closed around March when the CEO kinda closed(or sold/swapped) it without consulting with the community.
So the story that inspired this post goes like this,
Once upon a time on Uptrennd it was so easy to make points or tokens called 1UP, there was this particular girl on Uptrennd who was from my country Uganda who amassed over a million of these tokens!
This particular girl had almost $100,000 worth of 1UP tokens on her Trust wallet at the ATH price of 1UP, but she did not sell!
When Is The Right Time To Take Profit
This makes me ask the question again
When Is The Right Time To Take Profit?
I know I have also been a victim of such mentality as I have a long-term (HODL) mindset, but sometimes I regret when the price tanks a bit hehe.
So for this particular girl, she did not sell hoping that the prices will keep rising only for Uptrennd to close and the value going to almost zero.
How do you recover from such an experience?
Let me convert $100,000 into our Ugandan shillings, it is really a lot of money here which a few folks earn in a year.
Remember that many people here in their entire lifetime have and will beer earn this kind of money.
As yu can see from the image above, $100K is 300 fucking million in Uganda shillings.
For perspective, this money can buy 100 acres of land in upcountry, build a house and even buy a car for comfort!
So again when is the right time to take profit?
Another problem I assume this girl did not make the decision to sell is because she earned the money "freely"
She did not invest her earned money in the platform, so it is difficult to determine how much value she has invested in earning that money!
It is always easy to take profit when you know you invested $100 and now the tokens are worth $3000! It is easy to make a quick decision by doing simple mathematics hehe.
It is easy to calculate that my $100 has turned into $3000 meaning my money has multiplied 30X, so you can easily take out your capital($100) for starters.
It is a bit tricky to make a decision to take profit on these blockchain social media platforms especially if you have not invested your fiat into the platform.
So I do not blame this girl entirely for this uno=forgetable experience.
Btw I had she lost love for crypto because of that bad experience with Uptrennd!
What would you do if Hive skyrockets to over $15 each, would you keep hodling or you would sell some?
Concluding Thoughts
I know I have that long-term mindset in regards to investing, but I can assure you that if my Trust wallet showed even $20K, I would cash out some to make some physical investments hehe.
So again when is the right time to take profit?