When a gain lands in your wallet, you have two options: move it back into a project, or withdraw it to your bank. Neither is wrong. Here is how to think about it.
Reasons to reinvest
- You do not need the money now and want it working.
- You want to build positions across more projects.
- A current holding is near its return cap and the capital should move to a fresh project to keep earning.
Reasons to withdraw
- You set out to draw an income from your investments.
- You want to lock in a good cycle rather than leave it exposed.
- Your circumstances changed and you need the funds.
A middle path
Many investors split it: withdraw a portion each cycle and reinvest the rest. That gives you something in hand while keeping your base growing. Decide the ratio in advance so the choice is not driven by how you feel about one cycle’s result.