As crytpo investors it is important we think of the "what ifs". Being ready to take profits is part of being a great investor. Whether you plan to sell short term or hold your crypto currency long term.
Personally I believe it depends on the investment. But when it comes to XRP you will most likely hear the term "HODL". There are many reasons why people think XRP is a great long term investment. But thats not what we will be discussing today.
The more important question today is "how will you take profits when you do"? I think this is a very important question. I also think there are a lot of young investors who don't really think about exit strategies. Its always phrases like "when moon?" or "when lambo?". These saying's that have essential evolved into memes in the XRP community. Its all fun until the day you want to cash out and you have no clue what to do.
Im not talking about just pushing the sell button and calling it a day. Im talking about where those profits will be re-invested? Will you convert your crypto currency back to fiat and spend that money? Will you re-invest it into businesses, land, or even precious metals? What are your chess moves and how much have you actually thought about it?
I think that its a great time to start pondering those ideas. As we move into the year 2020 we are going to see more adoption. Governments from all around the world are starting to really talk about digital value. We are living through one of the most unique financial evolutions in human history. The creation of "THE INTERNET OF VALUE"!
I think that our strategies may change as we make changes to our current financial system. Who's to say there wont be an official Gold Backed crypto currency? What if we digitize all assets and back everything that has value with crypto? It sounds like something out of a science fiction novel. But its very possible and honestly makes a lot of sense. If we move in that direction; it would be a lot easier to trade your value to other assets directly on the Ledger.
But until then (if it ever does happen) you need to have a concrete plan. I don't think its necessary to tell everyone what your plan is. It should be a personal conversation with yourself. If you need to talk to someone I recommend a professional financial advisor. Even though I am not an advisor I do personally recommend you re-invest a percentage of your profits. For example: businesses, precious metals (Gold, Silver, Copper), real estate, and maybe even other crypto currencies.
The idea is to constantly re-invest so you can live off of your annual profits. They don't really teach you about this in the public school system. Its very unfortunate and also a huge problem. But thats a whole other discussion...
I guess my final advice would be to write out a plan in a notebook. Whether its taking profits at specific price ranges or holding for a certain amount of time. Deciding if you want to sell all of it or only 50%. Then breaking down the percentage of those profits that will go to other investments.
Don't forget that there are companies like Nexo that allow you to collateralize your digital assets. Which means you can take a loan out against the amount of money you have in your crypto. Use that money to create another source of income. Then pay back the loan without ever having to actually sell your crypto currency. Although there is interest on the loan; this may be a good idea for those who are holding for long term. You also have services like Glint where you can invest in Gold. After signing up they send you a debit card in the mail, and you can spend your Gold instantly anytime. This is actually a service I currently use because of its convenience. But I digress...
Just do yourself a favor. Think about the future!