Articles on day to day topics. Learn your way into the crypto world.

So you have invested in a crypto currency but your portfolio value has gone down? Is there still a chance that you can make a profit out of your investment while it is down? Lets talk about it.

This is common assumption that when you invest in crypto currencies, it will make you a millionaire in no time. Most of the new investors invest without even realising the risk of financial losses or being underwater for a long time. If you are a new investor or have been in crypto for some time, this article will give you some insight of how things work and how to reap some profits while crypto is going down.

Lets say you bought 1000 coin X tokens which were trading at $1 each. So now you have invested $1000 dollars into your portfolio. Next thing you see is that your coin X value is starting to go down (which is usually the case). Now you have two options.

1) Cash in your coin X at a loss in panic

2) HODL for long term and wait for your coin X value to go up.

So which option is better for you in your opinion? The answer is NONE. There is flaw in these two approaches. First option will set you back a few $$$ of your hard earned money straight away whereas later can set you back even more or end up loosing most of your investment. So what to do? Now you have asked the right question.

First and foremost thing you need to do is "Do not panic" because you can still take profits. How would you be able to do that? Its very simple and requires some patience as well as market research. Look for the market trend. If it is going sideways then be patient and wait for either markets to go up or down. If trend is going upwards then sell your coin X a target price you have already set. Lets say your target price is $1.25. As soon as your coin X reaches that value then sell it. Now you have made a 25% profit on your investment. This is very important as you need to take profits on the way Do not be greedy as you will become liquidity to other sellers and it could take a long time to recover from that.

But if the markets are going down then you need convert your coin X to stable coins and wait for the market to drop further. There is no hard and fast rule to tell when the market has bottomed out. Its your research and market watch that will enable you to see things the right way. If you think that markets have dropped enough and you can buy back your 1000 coin X at a lower price while keeping some extra stable coins as reserve. You have nailed it. You not only got your 1000 coin X back but also saved some extra cash in form of stable coins which would be your profit. Lets say your coin X lost ¢0.10 since you invested in it. Now your portfolio is down by 10% and you have $900 value in your crypto. Now you have converted $900 to stable coins and you are waiting for more volatility. After a few hours or a day or two coin X is valued at ¢0.70. At this poinht you think that it is a good time to buy and you buy coin X at this rate. Now you have bought 1000 coin X for $700 while you still have $200 as extra funds.

Now its entirely up to you how you utilise your extra funds. You can either invest those in coin Y or may be use them for other personal uses. This approach will benefit you in long term and you can keep taking profits in this way as long as you do not become too greedy.