How often should I take profits?

For instance, if an investor achieves a 25% annual return on their cryptocurrency holdings, dividing 72 by 25 gives us 2.88. This indicates that the investment will approximately double in value every 2.88 years.

The Rule of 72 is a fundamental tool in financial analysis, particularly for cryptocurrency investors. It offers a quick and efficient way to estimate the time required for an investment to double in value.

The rule operates on a straightforward principle: by dividing 72 by the annual percentage gain of an investment, one can approximate the number of years it will take for the initial investment to double.

BTCC, a leading cryptocurrency exchange, offers a comprehensive suite of services to support such strategies. Its platform includes spot trading, futures trading, and secure wallet services, among others.

This rule is particularly useful for those adhering to a profit-taking strategy, where investors aim to withdraw a certain percentage of their profits periodically.