Crypto: Selling Profits Only but Keeping Principal?

Lokdan on 13/04/2021 - 17:24
Last edited 13/04/2021 - 21:21 by 2 other users

Hello,

I wasn't able to find information about this online or on OzBargain (it could be easy to find - but I had no luck). My question is (please excuse the math, I'm sure it doesn't add up, but I'm just typing it as an example):

For example, if I'd purchased $1000 worth of coinX @ $100 per coin (and it is now worth $120 per coin) and as a result of this increase, I've now made a total profit of $500, making my total: $1500… If I wanted to only sell the $500 profit and leave the original principle of $1000 in there - how does that work?

Are these assumptions correct:

  • If the price per coin drops to $110 for example, would my principal begin to drop even though I purchased it as a lower price?
  • If the price per coin goes from $120 to $130, how would the new total profits be calculated?

Sorry if my questions sounds confusing or all over the place, I wasn't able to find a straight answer online. I'd just like to cash out the profits I've made but leave the principle untouched and just wanted to know the implications, if any, and any information from other people's experiences on this.

Thank you.

Financial

closed Comments

  • tsunamisurfer on 13/04/2021 - 17:26
    +16

    if I'd purchased $1000 worth of coinX @ $100 per coin (and it is now worth $120 per coin) and as a result of this increase, I've now made a total profit of $500,

    I think you may need to revisit your Grade 2 mathematics exercise book or reconsider investing altogether.

    • okdan on 13/04/2021 - 17:29
      -8

      I did mention I was writing these figures up as an example only. I was calculating everything to an exact science. I just wanted to paint a picture…

  • brendanm on 13/04/2021 - 17:26

    Not sure if serious? You would sell $500 worth of the coins. You would then have less coins. The price drops, you now have less then $1000 worth of coins. The price goes up, you have more than $1000 worth of coins.

    • JimmyF on 13/04/2021 - 20:51

      Thats not how CGT works though.

      • brendanm on 13/04/2021 - 20:52

        Not sure where I mentioned capital gains tax?

        • JimmyF on 13/04/2021 - 20:58

          Look it up, and you'll understand. You can't just release the profit like you claimed by selling $500 worth of coin.

          • brendanm on 13/04/2021 - 20:59

            @JimmyF: Of course you can, you just may have to pay capital gains tax on it. Same as you would with shares or anything else.

  • okdan on 13/04/2021 - 17:33

    I figured out my answer - with a bit of embarrassment. I can't seem to figure out how to delete this entire forum post.

    • Hithere on 13/04/2021 - 17:59
      +1

      how to delete this entire forum post.

      You can't.

      That's a job for staff. Try reporting the thread and when they are available they'll make the decision as to what to do with the thread.

      • SF3 on 13/04/2021 - 18:22

        Also missed opportunities to allow others to learn.

    • deme on 13/04/2021 - 19:37

      Saved because this topic is too funny.

      https://web.archive.org/web/20210413093648/https://www.ozbar…

    • SF3 on 13/04/2021 - 20:50

      I figured out my answer - with a bit of embarrassment. I can't seem to figure out how to delete this entire forum post.

      Sounds like 2 birds with one stone.

  • Almost Banned on 13/04/2021 - 18:07
    +1

    One should never sell their principles.

  • Hithere on 13/04/2021 - 18:21
    +7

    I knew a girl who had no principles, she gained a lot of interest though.

    • DashCam AKA Rolts on 13/04/2021 - 18:29
      +2

      Short term high interest, long term diminishing interest.

      • Kangal on 13/04/2021 - 20:40

        I want a girl with a short skirt and long jacket

    • Donaldhump on 13/04/2021 - 20:02

      Op high school had no principle.

  • Tech5 on 13/04/2021 - 19:03
    +1

    If this is a brain fade, please continue. But if you actually have trouble with this, I would suggest not investing in crypto at this stage

  • Donaldhump on 13/04/2021 - 20:01
    +1

    Yes 10 coins at 100 each, now worth 120 each equals 500 profit.

    • brendanm on 13/04/2021 - 20:44

      Quick mafs

  • Halc on 13/04/2021 - 20:03
    +2

    OP's post is a strong sell signal

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