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This is why you DON'T need to sell your initial investment. (at least not a must, I did the meth)

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This is why you DON'T need to sell your initial investment. (at least not a must, I did the meth)

So, a few days ago, someone posted a self-storie saying that he/she had already double his initial investment (Really happy for the guy). He then was asking on the same post, "What should I do now?", almost every answer was "Sell your initial investment", and yes, it is a safe bet, and you then have free money to play around on crypto, hopefully it will double again, and again, and again...

But, if you actually do the math it's not quite the best call to make.

Let's make an example: If you buy 1000 ada at 1usd, your initial investment is 1000usd. If Ada hits 2usd, you then will have 2000usd, and you can take your initial investment out, and you will live happy ever after hoping that the price goes another 2x and you'll then have a 4usd ADA, with 500 coins left, you can now take 2000usd out (if you take the half of it to take profits). GREAT right? Well let's take a look at this:

The meth, taking 50% out everytime it does a 2x.

So as explained. You started with 1000usd you got 1000 ADA, and you sell at 2 usd, if you repeat this over time, 3 times, everytime the price goes for a 2x, you will get a total profit over time of 5000 usd. Amazing! right?... RIGHT?

Well, not quite, that's not the best call to make. Lets have another aproach to this. What if you KEEP your initial investment, and keep all your coins (Obviously), and don't sell at profit when you can take your initial investment out, things look like this over time,

The meth, not taking profits.

You'll end up with a total profit of 15000usd, if you keep your coins in. Now this is the best call to make over a long period of time obviously. You don't take profit when you get a 2x, why? cause you're loosing coins, and FIAT under the bed doesn't multiply but magic coins like crypto do multiply over time (if you don't believe me, zoom out).

In my honest opinion this is the best way to make profits over a long period of time, now if you wanna play safe, go ahead, you can take profits along the way, but I'm in for the long run.

Now maybe you're asking, "But what if I only take my initial investment out?", well it looks like this:

The meth, taking only the initial investment out.

As you can see, you only accumulate a total of 9000usd of profit. You have more profit than taking it out every 2x, but it's not even near the profits that you can make if you don't even touch your coins. 'Cause you're leaving part of your starting position

Now, this doesn't mean that you can't take profits along the way, in my honest opinion, the best way for taking your initial investment out, it's waiting for the price to go more than 2x, 'cause then you will take out a lot less coins out, not 50%, let's take a look at this now:

The final meth.

If you sell (in this case) at 8usd, you only would have to sell 125 coins, to get back your initial investment of a 1000usd, and not 500 the first time that it makes a 2x. And by doing this, you'll be short only by a 1000usd (in this case, and in comparison with the holding strategy) if you sell later on the market. That 1000usd would obviously go wider as the coin goes up in value, but you'll lose a whole lot less than selling 50% of your coins.

Anyways, hope this can help you make a better plan for the future to come. Stay safe, hold, and don't do too much meth.

Edit: Yes this is under the assumption the price will go up, that’s why I said “IT’S AN EXAMPLE”. Also I never said it’s a MUST. It’s something to illustrate a specific scenario, nothing else.

submitted by /u/isaac_horstmeier
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