š Investment Strategy: Withdraw monthly profits or let your investment grow? š°š¤
Imagine your crypto rises $5 a month š. This is just a simplified example to see the impact of your decisions. Now, let's look at two approaches to manage profits in a bullish scenario š.
šø Periodic Profit Withdrawal (monthly) š
Initial purchase:
100 coins at $0.50 = $50 šµ
Month 1: The price rises to $0.55 ā total value: $55 ā Withdraw $5 ā Sell 9.09 coins.
Remaining coins: 90.91
Total withdrawn: $5
Month 2: The price rises to $0.60 ā total value: $54.55 ā Withdraw $5 ā Sell 8.33 coins.
Remaining coins: 82.58
Total withdrawn: $10
------>
Month 10: The price rises to $1.00 ā total value: $38.12 ā Withdraw $5 ā Sell 5.00 coins.
Remaining coins: 33.12
Total withdrawn: $50
Final total (total value + amount withdrawn):
$33.12 + $50 = $83.12.
ā
Benefits:
Constant liquidity šø
Less risk by withdrawing regularly š
Flexibility to reinvest š
āļø Disadvantages:
Reduced capital with each withdrawal š½
Frequent fees š·ļø
š° Keep the Investment and Withdraw at the End ā³
Initial purchase:
100 coins at $0.50 = $50 šµ
Month 10: The price rises to $1.00 ā Withdraw $50 ā Total: $100.
ā
Benefits:
Maximum long-term growth š
Compound interest š”
Fewer fees š¦
āļø Disadvantages:
Higher risk due to volatility āļø
Limited liquidity until the end ā³
š Which to choose?
If you believe that crypto will continue to rise, keeping your investment may be more profitable in the long run. If you prefer regular profits and less risk, periodic withdrawals may be the best option. š¤
š” Consider the fees:
Each transaction has fees that add up over time. If you make many, they can reduce your profits. šµ
š Binance Earn:
If you prefer not to sell, use Binance Earn to earn compound interest and grow your capital without worrying about daily fluctuations. šøš
$USUAL $XRP $BTC #hold #sell