Bitcoin to GBP Exchange: 4 Things to Do With Your Profits
So you live in the United Kingdom (UK) and you bought Bitcoin (BTC) a long time ago. Congratulations! You’re currently sitting on some massive profits. But what does one do with those profits? Does one cash out, ride off into the sunset and never look back? Or do you go all in and hope BTC goes to $1 million? Actually, both of these responses are neither wrong nor right. It’s a bit more complicated than that.
There are several creative roads to take when you finally make that Bitcoin to GBP exchange. Today, we’ll go over a few to help make that decision if and when the time finally comes.
Bitcoin to GBP exchange tip #1: Invest in stable savings accounts with 12% interest
We get it. The volatile nature of the crypto market is exhilarating. There is nothing quite like that feeling of waking up, immediately racing to your phone, and seeing your portfolio go up double or maybe even triple digits overnight. As fun as that is though, sometimes it’s nice to just sit back, relax, and invest in something with low risk and stable profits.
If you’ve already made some amazing profits on your Bitcoin, perhaps it’s time to give yourself a break. For example, YouHodler savings accounts pay 12% annual interest on stablecoins. Hence, you could do a Bitcoin to GBP exchange with just a 2% fee right on our platform, and then convert GBP to your favorite stablecoin.
No more worrying about the ups and downs of the market. Instead, you can count on us to deposit your weekly earnings directly into your YouHodler wallet. It’s a simple, stress-free way to make a passive income.
Bitcoin to GBP exchange tip #2: Try out the Barbell Strategy
Tip #2 is a mutation of tip #1. This is for the people that just can’t manage to sell their whole bag and do a full Bitcoin to GBP exchange. That’s completely fine. The beauty of Bitcoin is that you own it and you can do whatever you want with it. That’s where the Barbell Strategy comes into play.
The Barbell Strategy is an investment strategy that helps you balance your portfolio with risky (and potentially highly profitable) assets and safe, stable assets. In this case, you find a ratio that works for you (e.g. 70/30). Then, you would sell 70% of your Bitcoin portfolio and invest those into something safe and stable like the aforementioned YouHodler savings accounts. Then, you leave the other 30% in your Bitcoin wallet and let it run with the ups and downs of the market.
With this strategy, you are getting the best of both worlds without missing out on either.
Bitcoin to GBP exchange tip #3: Invest in precious metals
Cryptocurrency is a market that’s famous for its dramatic swings. Until that changes, it’s crucial to at least diversify your portfolio with some precious metals. That’s right, gold is still an extremely healthy asset to keep in your portfolio. Compared to traditional markets, gold tends to keep going up when everything else goes down. It is a great hedge during a geopolitical crisis, monetary inflation, or even a global pandemic.
While it’s true gold won’t give you massive returns like Bitcoin or Gamestop stock, gold is great as an insurance policy. Think about it. You wouldn’t buy a brand new home or a car without insurance would you? Of course not. So you should apply the same logic to your crypto portfolio. But just how much gold insurance should one buy?
CNBC’s host of “Mad Money” Jim Cramer suggests gold should be no more than 10 or percent of an investor’s portfolio.
“I think 10 percent is the upper limit because I consider gold as an insurance policy and no worthwhile insurance policy should be 20 percent of the money you have invested.”
So how do you buy gold? Well luckily, YouHodler makes it very simple. After your Bitcoin to GBP exchange, you can instantly convert GBP to Paxos Gold (PAXG) a stablecoin backed by real gold. Alternatively, you can skip the extra step and convert BTC to PAXG directly with just a low fee of 0.5%.
If that wasn’t enough, YouHodler also pays 8.2% APR on PAXG. So not only are you buying gold to use as an insurance policy in your portfolio, but it’s also bringing you a considerable passive income.
CLICK HERE to earn 8.2% on gold
Bitcoin to GBP exchange tip #4: Make a profit-taking strategy before you exit
Surely many of you were hoping tip #4 would be “buy a Lambo!” but sadly, that is not the case. Instead, it might be better to do something a little more logical like creating a profit-taking strategy for example. It’s good to put some thought into it. Just don’t say “I’ll sell my Bitcoin when I made enough money.” Many investors go in with that mindset but the thing is, there is no such thing as “enough money.” Greed is one of the biggest reasons people fail in the market.
As we mentioned several times in the article, the crypto market is fickle and volatile. You don’t want to be caught on the wrong side of a bear market. Hence, here is a little equation you can use to make a solid exit strategy.
PROFIT = 2 * RISK or (P = 2 * R)
Simply put, this means you can take a profit when you make twice as much money as you risk. For example, if you risked $2,000 in Bitcoin, you should take a profit when you make $4,000. Many of you might be reading this and say this is too conservative. Perhaps your profits are already well above double your risk. If that’s the case, then you can get a bit creative and combine various exit strategies.
For example, you could just take 50% of your profits when it hits the P = 2*R amount. Then, you could set your sites higher to five or six times higher than your initial risk (P + 5*R or P = 6*R) and then pull the rest out there.
Really, if you choose to have a conservative exit strategy or a risk one is completely up to you. What matters is you have some exit strategy and you stick with it, making sure greed doesn’t get in the way of your optimum profit point.
Still haven’t bought BTC? CLICK HERE to buy BTC with GBP right now