3 Options For Protecting Cryptocurrency Profits After Last Year's Bull Run

From real estate and stocks to precious metals, there are many ways you can invest your money. Today, some are seeing the benefits of investing in various forms of cryptocurrency. Thanks to the massive bull run of 2017, many people saw enormous profits after purchasing and then selling Bitcoin, Ethereum, Litecoin, and other types of cryptocurrencies. If you are part of this group of cryptocurrency investors and traders, protecting your profits is imperative. To manage your wealth while protecting your crypto profits, here are a few options to consider.

Transfer to Bank

 A traditional checking account will help you protect the profits, but it will not help you grow the profits.

You do have the option of moving the money into a savings account. Unfortunately, money in a regular savings account will not earn much interest over time, so consider moving the money into a high-yield savings account.

Even though a minimum deposit and balance will be required with these savings accounts, the higher interest rate will allow you to earn more money on your cryptocurrency profits. Ask your current bank if they offer high-yield savings account. Also, shop around to find banks that are rewarding bonuses to individuals who open new accounts.

Transfer to Fiat

Depending on the platform in which you invest cryptocurrency, you may have the option of selling and transferring the funds into fiat. Fiat is basically currency backed by the government, such as the United State's dollar.

Once you have sold your cryptocurrency and transferred the money to fiat, you will be able to protect your earnings while deciding what your next move is. If you have no further plans of investing in cryptocurrency, you can transfer the fiat into your bank account. If there is a possibility of investing in more cryptocurrency, you can buy new coins with your fiat.

Buy the Dip and HODL

Predicting any market is difficult, but predicting the crypto market is nearly impossible. Many experts believe a new bull run will start soon, so there may be an opportunity to buy while coins are low and sell when they increase in value.

This will require buying and hodling for a period of time.

The term, HODL, originated in 2013 when a user posted, "I am hodling" on a forum in response to a decrease in the price of bitcoin. Basically, the user meant to say "I am holding" bitcoin and not selling, but the spelling error become a popular trend in the cryptocurrency world.

Using your profits to buy the cryptocurrency dip and hodling may help you earn even more profits when and if the next bull run starts.

Whether you want to protect your profits and grow them in a safe bank account or you prefer to reinvest and earn even more money, cryptocurrency can be a great investment. However, make sure to contact a wealth management advisor before making any investments or large financial decisions.