Crypto has been booming so far in August and many portfolio's that turned red after May are now turning green again. This of course brings the age old question: What are you going to do with your earnings?

I'd like to put a couple of options in a row for you and tell you what I am deciding to do. This of course is no financial advice and always do your own research! I would love to also hear what you are planning to do!

• Take profit and put it in fiat: You probably know the saying: profit is only real when you convert it into actual fiat, otherwise it's just possible gains. As people see their portfolios in the green some choose to cash out into fiat. There are different methods some people go for percentages of profit that they take out, while others take out their initial input and continue on with the profits.

You can always decide of course that when the prices go down you want to use some of that fiat to buy in more. I am currently not cashing out into fiat though. Why? Because my interest on fiat is absolutely 0.... In some countries they even have negative interest on savings now. It could be that for you it makes sense to get it in fiat, maybe you want to invest in something else or make a purchase or you still get interest on your fiat money (you lucky monkey!), but for me it is not right at this time.

• You have diamond hands Some people have decided they are not going to sell their crypto. Ever. They are the hodlers for life and will continue to buy more crypto and hold whatever they have. That is fine too of course, nobody is forcing you to sell if you don't want to! Most people who decide to keep their crypto do sometimes sell at a high to buy back at a lower point, to increase the amount they hold. I have a part of my portfolio that I mean to hold for a long time. I have put it on Celsius for staking to get rewards on. I don't plan on selling these any time soon. For me these holdings are mostly BTC and ETH.

• Exchange some to stablecoin As profits soar you could sell some of your coins but not exchange them for fiat but for stablecoins instead. These are coins that are pegged to fiat money, like USDC which is pegged to the dollar. The advantages: they generally don't crash and you can stake them for profits. They are kind of an in between to cashing out in fiat. I have decided to put some profits in stablecoins as they give a bit more security than crypto, but unlike fiat I do receive interest on them! The only downside is that not all stablecoins are very transparent about what they do and there is a risk they will fail, while with fiat that risk is a looooot smaller. I have opted for this method with some of my money to earn some interest and then later make the decision either to buy back in at a lower price or to take some as profits and turn it into fiat

Closing Remarks

I hope this has given you a bit of an idea about what the options are. Whatever you decide to do, make a plan and stick to that. You don't want to be crying 2/6/21 months from now wishing you had done things differently.

I am really curious to hear what your plan is with your profits! Let me know in the comments!