How to Decide Which Crypto to Sell When You Want to Buy Something New
Every trader knows the feeling. Something new catches your eye — a project with real momentum, a narrative gaining traction, a token at a price that feels like an entry point you'll regret missing. You want in. But your capital is already deployed.
Why Most Traders Get This Decision Wrong
The instinct when you want to fund a new position is to look at your portfolio and find the loser. The red one. The one that's down 40% and causing you pain. That feels logical — cut the underperformer, deploy capital into something with more momentum. The problem is that this is backwards.
A position being down does not make it a bad hold. A position being up does not make it a good one. The only question that matters is: at today's price, with today's information, would you buy this position if you didn't already own it?
The Five-Criteria Framework
Product quality and appeal. Mainstream breakout potential. Return vs your target. Social reach and momentum. Tokenomics and supply health.
A Worked Example — Scoring ARB
Product quality scores 8 out of 10. Mainstream breakout potential scores 6 out of 10. Return vs target scores 7 out of 10. Social reach scores 6 out of 10. Tokenomics scores 5 out of 10. Composite conviction score: 64 out of 100.
Using the Score to Make the Decision
Score the new opportunity using the same five criteria. Compare that score against every score in your existing portfolio. The position at the bottom of your leaderboard is the one that should make way for the new entry.
What Changes When You Do This Consistently
You stop holding positions because you are waiting to get back to even. You stop missing opportunities because you could not decide what to sell.