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So I've taken profits on coins before by selling them all and reinvesting my capital back in different coins and then spending the profits on whatever I want to. My strategy, generally, is to hold until I believe I'm close to the top of the bull cycle and then sell everything. However, I've missed out on a ton of unrealized gains, sooooo many times by just holding instead of selling and then buying back during the dips. I'm not gunna make the same mistake again. Basically I own a fairly large bag of Matic. I've been holding since early this year and I'm in a great profit currently. I think it will pump a bit more in the next day or so. I want to take some profit out and then buy back when it dips but I need advice on the best way to do it. So I'm considering either selling my entire bag of Matic, keeping £5k profit for myself, and then eventually reinvesting my original capital plus all my gains(minus £5k.) For example, Matic is currently at £1.86. If it goes to £2, I could sell everything, keep £5k profit and then reinvest the rest back in Matic when it dips back down to £1.86. I'd end up with more Matic than I currently hold, plus I'd have £5k cash. The other option I'm considering is, once it pumps a bit more, sell £5,000 worth of Matic and hold the rest. I'd have £5,000 cash but less Matic. What is the best way tax wise. Bare in mind, I live in the UK so the first £12,300 in capital gains is tax free, anything over that is taxed at 20%. Any help would be greatly appreciated.
Update I knew I should've sold lol Matic is now down 30% since I posted this. I hope this serves as a reminder that it's good to take profits because, like I said in my original post, there will be many major dips to come. Could've taken out £5,000 cash and bought back with the rest of money and have about 24k more Matic.
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