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Taking the profits off the original BTC investment?

  • 05-11-2017 1:17pm
    #1
    Registered Users Posts: 2,327 ✭✭✭ The One Doctor


    I've only been in BTC about ten days and I'm very worried about the phenomenal price rise. I invested about €3000 and I've already made over €800. Surely this rate of increase is unsustainable over the long term?

    My idea is to pull out any profit to fiat every month once I have more than €4000. That way I limit my exposure, benefit from any rises and have a fiat reserve to buy more BTC if or when it tanks.

    Madness or sensible?


Comments

  • Registered Users Posts: 1,213 ✭✭✭ wally1990


    It would be sensible
    The current rise in BTC is a historic rise in such a short period of time and is due a correction soon I'd imagine

    I'm in the same boat as you

    My portfolio is now standing at 12k so I'll be banking some profits to counteract any downturn

    It is wise to take profits


  • Registered Users Posts: 1,678 ✭✭✭ Selik


    Nobody ever lost money taking a profit. I do the same every now and again with bitcoin and all my investments. I'd be alot better off if I had just left my bitcoin untouched since 2013 but I was burned badly in the crash and consider it prudent to take a little risk off the table. If it goes up I'm still happy and if it goes down I reinvest at a lower entry point. Win win!


  • Registered Users Posts: 2,327 ✭✭✭ The One Doctor


    Thanks guys, I withdrew a fair chunk just there. First of many withdrawals I hope!

    Can hardly believe how much I made in 10 days, bonkers!

    As you can probably tell, I'm a newbie to all this. Great forum.


  • Registered Users Posts: 1,213 ✭✭✭ wally1990


    Thanks guys, I withdrew a fair chunk just there. First of many withdrawals I hope!

    Can hardly believe how much I made in 10 days, bonkers!

    As you can probably tell, I'm a newbie to all this. Great forum.

    Proceed with caution , whilst great returns can be made also can losses

    The markets are very volatile

    However I would mention before you invest in any company or currency do plenty of reading on the company , their white paper and staff backgrounds

    Many scams out there at the moment

    I've turned 2k into 12k since may but it's through regular trading , research and holding in key areas etc

    Whilst I am by no means an expert I have experienced days where my portfolio dropped 20-30% overnight so be careful and only invest money you can afford to lose

    Secure your money on a good wallet (there is many types (hard, paper, online etc )so do you research) and apply 2 step encryption to access your accounts on exchanges

    And most of all, Enjoy , it's a very interesting area :)


  • Registered Users Posts: 27,467 ✭✭✭✭ drunkmonkey


    Devercify? Have you a normal share trading account, I presume what ever way you buying the bitcoin you’ve no way to set a stop loss to lock in profits so your just withdrawing your profits without putting them to use as it’s risky not to take profits in your position.

    Maybe open a trading account and invest the €800 in mining and crypto related companies(that’s my current strategy) don’t have all my money in crypto business though.
    I’m delighted bitcoin has rose as it should put me in for some serious profits next week but there shares I have and stop losses in place so even if it was bad new for bitcoin today my profits are safe.

    Well done though it was a gamble I didnt take last week but gave good consideration to, your up more than me right now on the same investment in crypto just 2 different strategy’s. I’m hoping for a 7k return by Friday on top of my 3k back. (What ever happens though my 3k is safe now as all protected by stop loss).

    Degiro is a cheap way into stocks etc.


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  • Registered Users Posts: 5,205 ✭✭✭ Elessar


    I'm considering the same, but I think I would rather just hold what I have for another few years.

    Just be careful re tax - every disposal has to be declared to Revenue, which as far as I understand it, means you will have to declare and pay tax on profits every time you move any BTC into euro.


  • Registered Users Posts: 301 ✭✭ J_A_F_A


    Elessar wrote: »
    I'm considering the same, but I think I would rather just hold what I have for another few years.

    Just be careful re tax - every disposal has to be declared to Revenue, which as far as I understand it, means you will have to declare and pay tax on profits every time you move any BTC into euro.

    Has anyone had any dealing with Revenue regarding bitcoins? I'm looking at a nearly 1500% increase and debating taking some profit.
    A search of Revenue.ie returns nothing of use. Just one link regarding Commissioner Irwin's Diary https://www.revenue.ie/en/corporate/documents/governance/irwin-diary-jan-mar-17.pdf

    Cheers,
    J_
    (PM if you wish)


  • Registered Users Posts: 5,205 ✭✭✭ Elessar


    No dealings yet myself but this is a decent guide:

    https://www.taxback.com/blog/cracking-the-code-of-irish-cryptocurrency-tax


  • Registered Users Posts: 9,062 ✭✭✭ Kenny Logins


    I've only been in BTC about ten days and I'm very worried about the phenomenal price rise. I invested about €3000 and I've already made over €800. Surely this rate of increase is unsustainable over the long term?

    My idea is to pull out any profit to fiat every month once I have more than €4000. That way I limit my exposure, benefit from any rises and have a fiat reserve to buy more BTC if or when it tanks.

    Madness or sensible?

    Have you done this yet? Today is not a good day. :pac:


  • Registered Users Posts: 2,327 ✭✭✭ The One Doctor


    Have you done this yet? Today is not a good day. :pac:

    I did it just before the peak, luckily enough. Got a weird feeling.


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  • Registered Users Posts: 2,072 ✭✭✭ ZeroThreat


    I'm wondering if I'll be able to hold BTC until the fork (to get the new coin) and still cash out before the inevitable correction occurs (so I can rebuy a a few k lower)...


  • Registered Users Posts: 2,327 ✭✭✭ The One Doctor


    ZeroThreat wrote: »
    I'm wondering if I'll be able to hold BTC until the fork (to get the new coin) and still cash out before the inevitable correction occurs (so I can rebuy a a few k lower)...

    That's what I'm planning too. Today's drop was only, what, 10%? Not much as things go. I presume BTC will keep climbing until the fork. Are you cashing out completely?


  • Registered Users Posts: 2,072 ✭✭✭ ZeroThreat


    That's what I'm planning too. Today's drop was only, what, 10%? Not much as things go. I presume BTC will keep climbing until the fork. Are you cashing out completely?

    I only hold 3 Bitcoin so yes. The rest consists mainly of ETH/LTC/NEO/VERT with small amounts of XRP/CVC/OMG/ARK.


  • Registered Users Posts: 27,467 ✭✭✭✭ drunkmonkey


    ZeroThreat wrote: »
    I only hold 3 Bitcoin so yes. The rest consists mainly of ETH/LTC/NEO/VERT with small amounts of XRP/CVC/OMG/ARK.

    What's your outloook for ETH, I bought into a miner of it.


  • Registered Users Posts: 4 freesheep


    Just Hold. Don't overthink this.
    If you can afford to have these money in crypto, just keep them there for 1 -2 years. And you will make much more, than trying to do any transactions.


  • Registered Users Posts: 27,467 ✭✭✭✭ drunkmonkey


    freesheep wrote: »
    Just Hold. Don't overthink this.
    If you can afford to have these money in crypto, just keep them there for 1 -2 years. And you will make much more, than trying to do any transactions.

    At these price levels you have to think about it. Holding 5k crypto and predicting it will double in 2yrs without any basis for the rise is straight out gambling if no stop loss in place, rookie mistske of investing.
    You could buy 100,000 shares for 5k, set a stop loss at 4.5k so most of your cash will be protected if the trend turns against you. If it goes in your favour and the price rises by 50cent you’re investment is now worth €50,000 with a max risk of €500.

    You should be looking at diversifying or at the very least protecting your initial capital. There’s more ways to get into crypto than straight out buying coins and taking the sit and wait approach, Bitcoin can turn rapidly in a minute and has done before. It’s wise to think about how minimise your losses if it does.


  • Registered Users Posts: 82 ✭✭ tobehonestwithy


    Hi Guys, Just hijacking this trade with a question. I've currently €5K worth of coins in my wallet. Initial investment €1500. I see the OP mentioned withdrawing to FIAT. is this through Coinbase and how straight forward is this.Has anyone done this. Not as much info on this as most other things Crypto related


  • Registered Users Posts: 2,327 ✭✭✭ The One Doctor


    Hi Guys, Just hijacking this trade with a question. I've currently €5K worth of coins in my wallet. Initial investment €1500. I see the OP mentioned withdrawing to FIAT. is this through Coinbase and how straight forward is this.Has anyone done this. Not as much info on this as most other things Crypto related

    If it's with Coinbase it's very easy, just go to Buy/Sell, deposit BTC to Euro wallet and withdraw the money via a bank transfer. Takes a few days to see the money in your bank account.
    At these price levels you have to think about it. Holding 5k crypto and predicting it will double in 2yrs without any basis for the rise is straight out gambling if no stop loss in place, rookie mistske of investing.
    You could buy 100,000 shares for 5k, set a stop loss at 4.5k so most of your cash will be protected if the trend turns against you. If it goes in your favour and the price rises by 50cent you’re investment is now worth €50,000 with a max risk of €500.

    You should be looking at diversifying or at the very least protecting your initial capital. There’s more ways to get into crypto than straight out buying coins and taking the sit and wait approach, Bitcoin can turn rapidly in a minute and has done before. It’s wise to think about how minimise your losses if it does.

    That's exactly my thinking. No-one can predict where BTC will be in a month, let alone a year. Day trading (especially with ETH or LTC) reduces my returns but it also manages risk. For instance, since Saturday I have made two trades, but the last few days I've been doing more research and haven't done any trades at all. So I risk my money at the time and price of my choosing. HODLing is great and can lead to brilliant returns, but it's not a strategy, it's hope (or belief).

    I got into BTC at €5200 and got out at €6300 after 10 days as I really believed it was insane. I plumbed the money back into day trading and feel a lot safer now. I don't want the moon, I want extra money for my family's day to day needs.


  • Registered Users Posts: 27,467 ✭✭✭✭ drunkmonkey


    If it's with Coinbase it's very easy, just go to Buy/Sell, deposit BTC to Euro wallet and withdraw the money via a bank transfer. Takes a few days to see the money in your bank account.

    Can you set it to automatically sell at a set price on any of these platforms?


  • Registered Users Posts: 2,327 ✭✭✭ The One Doctor


    Can you set it to automatically sell at a set price on any of these platforms?

    Not Coinbase, but GDAX and Kraken will. I don't like Kraken though, it's very unstable at busy times. However, that instability stopped me doing a FOMO on BCH!


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  • Registered Users Posts: 14,619 ✭✭✭✭ banie01


    Can you set it to automatically sell at a set price on any of these platforms?

    You can set stops, trailing stops, stop loss and stop limits on Kraken(Its the only exchange I have experience on)


  • Registered Users Posts: 2,875 ✭✭✭ KilOit


    Putting in a stop loss also means leaving all your money on the exchange which is a huge risk. you don't hold your private keys, the exchange does.


  • Registered Users Posts: 2,327 ✭✭✭ The One Doctor


    KilOit wrote: »
    Putting in a stop loss also means leaving all your money on the exchange which is a huge risk. you don't hold your private keys, the exchange does.

    I doubt day traders take all their keys off the exchange when they're finished for the day. It'd be a pain any time you wanted to trad. Just look at Kraken when it's busy - outages everywhere. That's a lot of time lost waiting for confirmations when money could be made (or lost).


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