Introduction
What is the most crucial thing in crypto? It’s taking profits and having a crypto exit strategy. You don’t want to lose all the gains you made during the bull market go down in value. There were two primary bull cycles until this day, and both lose their value about 88% after the bull market. So if you made one million dollars from crypto in the bull market, then after the bull market, you’ll only have about $120,000. No one knows when the crypto market will crash, so in this article, let’s talk about what I think is the best strategy to take profits and exit cryptocurrency when the time is right. Comment your crypto exit plan below in the comment section. So let’s dive into the topic.
2017 Bull Cycle
The 2017 bull market is so popular because it made multimillionaires. There are always two sides to a coin. Many cryptocurrency investors went broke because of this price action of cryptocurrencies. Once they had millions of unrealized profits, they lost all of them because of the wrong cryptocurrency exit plan. Some investors sold their all cryptocurrencies way earlier than the price surge. But many of them thought that bitcoin and other cryptocurrencies would go up forever. So they HODL their whole cryptocurrency bag to the end of the bull cycle and lost all the gains they had.
This graph shows how much they lost during the bear market. It’s nearly 88-90% of investors’ whole crypto portfolio. Many new investors and new institutions are in the cryptocurrency space now. So knowing the Crypto Exit Strategy will benefit everyone.
Think that the above graph is showing the selling times of your cryptocurrencies. Even though you are selling potions along the way, you still missed about 85% gain because of selling your whole crypto bag. So with my crypto exit strategy, you will be able to maximize your profits with cryptocurrency investments
My Crypto Exit Plan
I have seen what happened in the 2017 bull market, and I have made some mistakes. So this time, I’m well prepared for what is to come. This time I won’t sell my whole crypto bag at once. I took 10% at $50k, another 15% at $62k. My following profit-taking areas will be 20% at $78k and 25% at $98k. You’ll think why those numbers are not round. There is a reason for that. Many people try to sell at those rounded numbers. Because of that, most of the time, bitcoin crashes before that round number. So take some profits along the way.
Let’s think $100k is the market top. Then you have sold about 70% of your total profile, and you are holding another 30%. If you are a little worried that you would lose your gains, take out your initial investment. It doesn’t matter if the market crashes or gone up because most of your profits are already out. If you want, you can also sell your crypto along the way down at higher lows to maximize profits. I recommend to HODL at least 20% of your portfolio through the bear market. Learn more about Bitcoin and Trading with our FREE E-Book
This Crypto Exit Strategy is standard for every cryptocurrency on the market. But you should be a little aggressive and take out more profits from altcoins because usually, they lose more than 80% of their value in the bear market.
Conclusion
As crypto investors, we never know the market top. The only thing you can do is make assumptions and take out profits little by little without cashing out your whole portfolio at once. If you follow these steps, you’ll never lose 90% of your money with cryptocurrency investments again. What do you think about this Crypto Exit Strategy? Comment your idea below in the comment section.
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