WendyO is the pseudonym for a crypto investor and educator whose YouTube channel has over 127,000 subscribers, a platform that she dubs the largest all-female-run crypto YouTube channel. She also has a presence on TikTok, where she has almost 200,000 followers.
"I had originally heard about bitcoin in 2011, 2012, but you hear about stuff when you're not super tech-savvy and just bypass it," WendyO said. "But at the end of 2017, I was very entrepreneurial. I was in the process of quitting my job to finish school. I was a new mom and I really wanted to do something where I was able to be a stay-at-home mom."
She got into cryptocurrencies at the end of 2017 and had to navigate the bear market that came shortly after. During that time, WendyO taught herself how to trade and realized she could earn sustainable gains.
At first, she traded bitcoin and a few other small projects she believed in. Her goal was to accumulate a moon bag, which means taking out her initial investment and some profits from a cryptocurrency investment while still maintaining a position in the crypto. Since then, she's learned to trade responsibly and is constantly advising her followers to take profits along the way.
"Whatever you have left is considered a moon bag because you've removed your emotions out, you removed your monetary attachment to it," WendyO said.
This way, if a cryptocurrency crashes you're not left with a loss. And if it skyrockets, you have no regrets of pulling out, she noted. WendyO acknowledges that taking profits can be emotionally difficult because you can get attached to a project, but it's absolutely necessary if you're going to invest in altcoins.
"The diamond hand scenario does work to an extent, but when we're dealing with very risky projects with low market cap, low liquidity, this stuff goes parabolic," WendyO said. "You can make a lot of money, but at the same time, if you're holding this stuff and you're not taking profits on the way up, you're going to get wrecked because a lot of it is not going to sustain."
Profit pulling doesn't look the same for everyone and can depend on the level of volatility an altcoin has seen in the past. Zooming out on a chart and looking at historical patterns can help determine the volatility associated with a digital asset.
"There are two different ways we take profit. If you're in a very risky, volatile, moonshot coin, where you think you can put in a thousand dollars and it's going to 10 times in the next day or whatever, I like to sell half on a double, half on a triple, etc.," WendyO said. "Because I want to make sure I'm securing my capital. Those things can shoot up like crazy and they can also dump like crazy."
When it comes to blue-chip projects like solano, chainlink, binance coin, ethereum, or Polkadot, WendyO takes a different approach. Her process is more calculated, because altcoins that have larger market caps are less likely to see 10 times their value in gains — which means they're also less volatile.
"I like to take a step back, look at the charts, spot crucial areas of support and resistance," WendyO said. "And I like to take profit out at resistance areas or maybe 10% before particular resistance areas."
Tools to secure crypto profits
WendyO's favorite way to add to her position is with a limit order to buy. This option allows her to pre-set a price point she's willing to buy in at — that way if a quick price dip happens while she's taking a snooze, the order will automatically execute. This is a great option for traders to utilize, especially in the crypto market, which tends to move much faster than the stock market.
Additionally, she likes to set a stop-loss order, known as a limit order, which would sell the asset at a minimum price or higher. If a cryptocurrency's value begins to drop, the amount of your choice would sell. This allows WendyO to secure the profits she has already gained.
Investors who use this feature often continually adjust the order, increasing the price points at which the order is executed, parallel to the asset's growth.
WendyO emphasizes studying the historical chart patterns of the cryptocurrencies an investor is considering. Specifically, you should understand what basic support and resistance are, and determine what those areas are for each asset.
