Quick Summary
Doctor Profit manages to achieve 600 percent returns on XRP and switches to Ethereum (ETH).
This is a move, not bearish – XRP is still regarded as a good long-run asset.
XRP is gaining 342% last year, but its upside momentum is limited.
Ethereum is selling at a 30 percent annual discount, and this is an investment opportunity in the short-term.
Capital optimization and growth potential based reallocation in ETH.
The Strategy Shift of Doctor Profit: XRP to ETH
Much-hyped high-leverage crypto trader Doctor Profit has hit the headlines as he made a calculated mouse-on move to get out of XRP and into Ethereum (ETH) — but not before hauling an incredible 600% gain in his XRP bag.
The trader announced it through social media, stating the reason why he was shifting his portfolio. He did not reveal whether he bought or sold XRP at which amount but it can be assumed that the profits were made when the digital token rose to a peak of close to $3.40 in January, or when it gained to over $2.65 lately.
Now Why Ethereum over XRP?
As XRP is based at 2.38, Doctor Profit thinks that the asset is displaying minimal short to mid-term returns following its 342 percent yearly help. Conversely, Ethereum is a short-term play with a 30 percent discounted price off its one year high.
Clarifying, Doctor Profit added, that this is not a bearish position on XRP but a tactical move.
The straightforward and the complex answers [a big no] are both to the question of an XRP crash.
This demonstrates that he is still confident with the long-term potential of XRP, although with an interest in portfolio optimisation, ETH is likely to do better short term.
An Example of Capital Optimization in Action
The action that Doctor Profit is taking is not abdicating XRP or returning to it — it is performing capital allocation to gain greater short-term yields. According to him, Ethereum provides additional opportunities of catch-up with growth opportunities, and because today it is not faring as well either compared to XRP or to Bitcoin.
I will seek to maximize my portfolio growth by taking advantage of tactical positioning by realizing USD gains and moving to an asset I consider as a more fruitful short-term proposition.
As XRP and ETH have not even yet reached the all-time high and as Bitcoin is already in the midst of price discovery, this change epitomizes a wider trend among intelligent traders, which is intelligently opportunist versus blindly committed.
Final Takeaway
The new strategy of Doctor Profit is the masterclass in crypto portfolio management. His switch to ETH does not mean he has lost faith in XRP, but rather a balancing act in order to maximize the returns. Markets change with time, and traders such as himself reminds us that sometimes the cleverest bet is not to clench our teeth, but to be clever about it.