This is a variation of Milking the Cow and actually again is a kind of skimming process, that I have previously called skimming the cream. Only this time you skim off the top while leaving the bulk of the currency in place. I didn’t want to call it Milking the Cow Part 2 and had to call it something else. So suckling the pig is what I came up with.
This depends on two requisites.
- You have an alternative wallet that offers staking rather than your fiat wallet as your holding wallet (I use TEZOs)
- You are happy to release profit slowly, but will reduce the amount of the other Crypto held and it may affect your long term profitability.
It is therefore best suited to day-traders, although I have recently read and I am inclined to agree that it is almost impossible to become rich by day trading.
It is once again a simple process and (even on Coinbase) absolutely reduces fees to almost nothing.
So how does it work?
As always watch your Crypto price after making your calculations and work out at what point you move into profit and now this is how it differs to Milking the Cow.
Instead of selling (converting on Coinbase) at a profit and then moving the remaining Crypto (small change if you like) to your holding account you continue to hold, but only move the profit to your holding account.
Do it small and do it incrementally and COINBASE charges are almost wiped out. At this moment TEZOs are quite high so it might not seem like the best time, and it isn’t ideal, but least every time you do so you know it is pure profit so it adds to your portfolio value all the time even if not paying the perfect price.
TEZOs stake and their long term potential is good – this is no shitcoin. Just look at the last few days.
At the same time you continue to hold a large amount of the Crypto invested in, even if it is reducing. Whenever you draw profits like this you must remember to reduce your break-even point by the amount of profit you have drawn or your spreadsheets will eventually reach a point of impossibility.
Why do it?
It is an easy release of short term profits but more importantly it counters an investment issue that we all face, especially if we are making frequent trades. One of the problems I encountered last week was that the market was almost impossible to read as it seemed to have reached almost its entire short term capacity and I really was scratching my head as to which other Crypto Currency to move my currently held Crypto Currency too. I didn’t want to pay high fees for selling and locking it into my fiat account (in my case GBP) and then having to pay fees again to buy and start the cycle again.
In this given situation this is the perfect alternative strategy when no clear cut option seems to be available.
However, be warned, you must always remember that if you do this your REDUCE the amount of Crypto-Currency which may affect the long term profitability of your investment. If you are not careful you will suckle the pig dry so it might be a good idea to set a limit on how much to take before you start.
Alternatively the obvious other approach is just to hold.
Crypto involves patience and it is not something that I particularly have so as I am evolving I am trying to build both a long term strategy and release short term profits at the same time.
I have thrown my lot in with TEZOs as I am attracted by the staking potential and this last few days has seen my portfolio value rocket primarily because of the boom in TEZOs. I know the price will go down as it settles, but who knows when that will be.
If you don’t like TEZOs why not use it to build up your BitCoin wallet – especially if not using it regularly for trading. You can almost build up a BitCoin wallet surreptitiously and it is pure profit so you will be relatively impervious to movements on the market and can just hold long. Lack of staking options is the only reason I am not doing this.
This is just one of my many strategies. I just need to figure out how it fits into my Internal Conversion Engine, maybe it draws from the battery to put the lights on!
Please read, like, follow and tip.
My other strategies can be found at the links below:
Investment Halving
https://www.publish0x.com/rah/newbie-tricks-oh-no-i-made-a-bad-purchase-don-t-panic-not-al-xropnze
Tactics For Newbies
Crypto Strategies - An Introduction
https://www.publish0x.com/rah/crypto-strategies-an-introduction-xyvwrwj
Simply Staking
https://www.publish0x.com/rah/tactics-for-newbies-simply-staking-xropvol
Milking the Cow
https://www.publish0x.com/rah/tactics-for-newbies-milking-the-cow-xxormyk
It’s Not All About Money
https://www.publish0x.com/rah/tactics-for-newbies-its-not-all-about-the-money-xyvwgom
The Magical Money Tree
https://www.publish0x.com/rah/tactics-for-newbies-the-magical-money-tree-xejzyme
Blending Strategies (the Internal Conversion Engine)
https://www.publish0x.com/rah/tactics-for-newbies-blending-strategies-xdrxrwz
Putting the Brakes on!
https://www.publish0x.com/rah/tactics-for-newbies-putting-the-brakes-on-xwnkwlp
Breaking Down the Wall
https://www.publish0x.com/rah/tactics-for-newbies-breaking-down-the-wall-xjjqpre
