That bullish feeling is once again returning to the bitcoin and cryptocurrency market. If you have made it up until this point without selling your coins, congratulations! If you are heavily invested into the cryptocurrency market, living through large price drops extremely bearish sentiment can be a tiring or depleting experience unlike anything you have gone through before. Most people aren't able to withstand it and will end up selling out of their positions; falling into that trap of buying high and selling low. So if you have made to this point, you should be very proud of yourself.
With that said, I'm on the opinion that the market is about to get extremely bullish. And by extremely bullish, I mean that prices are about to rise exponentially. For people that have been accumulating bitcoin for a decent duration of time, these upcoming months may in fact end up being life-changing. Life-changing can mean different things for different people. For one person life-changing may be finally getting the money to pay of their credit cards and get out of debt. Or perhaps finally giving you a cushion financially and a chance to get ahead. Maybe, finally being able to put a down payment down on a house for your family. Or it could mean becoming a millionaire and finally being able to retire or have financial freedom. I would argue that each and every one of the things listed above could be considered life-changing, and a huge amount of people will be able to achieve these said things.
There is one problem though. When people see the value of their coins going up, they often become greedy and expect that the prices will continue going up. Often saying, "Just a little bit more and then I will sell." Their goal flag post is constantly moving. Unfortunately a lot of these people will then see the price of their coins drop, but they are still waiting for it to go back up. And then the coin continues to drop. This causes the person to panic and then sell at an even lower price. It happens all the time. Leading them to miss out on a lot of profits.
So why am I writing about this? What can you do to prevent this from happening to you?
It's simple. You need to make your bitcoin or crypto cash-out plan and then stick to it. Just going with the the flow and deciding in the moment what to do can cause you to make a lot of emotional mistakes. By drafting your plan, having put deep thought into it, this will make it more likely that you will follow-through on your plan. I recommend you to do that now. Go get a piece of paper and begin now.
The first thought when beginning your crypto plan is what is your goal? Maybe simply it is just to have a hedge again the US dollar or the fiat currency in your local country. Maybe it is some of the things that I listed above, such as getting out of debt, buying a house, having a nice nest-egg for retirement, starting your own business, college tuition for your children, becoming rich, retiring or having financial freedom. What ever your goal is, write it down and this will be the thing that should guide each and every step that you make. For me personally, my goal is to become rich from crypto and be able to retire. I want to grow my passive income to a point that it supports my life and I wouldn't even need to touch my main crypto capital. Hopefully then moving to a tropical place to live peacefully. While this may seem silly to some, it is my personal goal and it is what helps to determine every move I make.
The next important thing you need to take into account is your timetable. For example, I don't see myself selling any crypto for at least ten years. This means I don't even need to worry about or consider selling. This has made my life a lot more stress-free; making it so I don't need to worry about the price volatility. By having a longer timeframe, it allows me to focus on the blue chips of crypto, even though their growth may be slower than the smaller cap coins. I then focus on building up my compounding passive income that will help me to accumulate more over the long-term. But, if your timeline is a shorter length; this will also affect how you will act. This might mean that you are going after the altcoins that will rise much fast. You will need to pay attention to the charts and sell at any time. There are great risks that come with this approach, but also potentially high rewards.
Next, you need to set your price targets and how much you will sell at each target. For example, maybe someone has a bitcoin price target of $100k, and they will sell 10% of their BTC at that level. There next target is $125k, and they will sell another 10% at this level. And it goes on and on. Everyone will have a different target and it is a good idea to have your own. After all, just like I said above; it will be much easier to take action if you actually have a plan in place. Always remember this key thing. You have no profits until you finally lock in your profits and actually sell back into fiat. Otherwise, you just have paper profits. While there are many HODLers out there that will say that you should never sell your crypto. I disagree. How could you ever blame someone, or look down on someone for making their life better. I think all of the reasons listed above would be great things to sell your crypto for, and I'm sure there a loads of other great options.
As for, this is my personal strategy. Just like the famous Matrix meme picture above says, I don't plan on selling my bitcoin or ethereum or any other cryptocurrency. Let me be more clear, I don't plan on touching any of my own initial capital. I think I will be able to achieve my dream that I discussed above while still keeping all of my crypto. I plan on doing this by putting my bitcoin, ethereum, Solana, Polkadot and other coins to work. Instead I will live off the interest that earn by either lending out my coins or staking. This is the exact reason why I have been working extremely hard to build up my crypto passive income streams. When making my crypto plan; retiring early and living off my earned interest was the goal that I initially wrote down, and it is what has been behind every crypto move I make. There are some very bullish price predictions for bitcoin and ethereum for the years to come. If the result comes even remotely near those predictions, this will make passive income from crypto an extremely profitable venture. I recommend everyone to put in the work now, and you will be able to reap the rewards later!
How about you? What is your crypto exit plan? Or do you never plan on exiting?
As always, thank you for reading!