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How to Develop a Crypto Exit Plan

   



How to Develop a Crypto Exit Plan




There  are plenty of signs that the bull run is about to continue. This means that your bags will be pumping. Some of us will reach financial freedom. Providing you have the right bags. However, any profit you may make, starts with an exit plan for your crypto gains.

So, let’s take a closer look at five points on how to make the most out of your potential crypto gains. Here’s the importance of having a crypto exit plan.

Have an Exit Plan

Everything starts with your exit plan. You have to have one and stick to it. The next and most likely final leg of this bull run is about to start. You don’t want to end up looking at unrealized profits. In contrast, you have to materialize those profits.

If your potential profits are life-changing, don’t hesitate. Sell your positions and don’t look back. Don’t let greed take over. That can easily happen. If your profits are 6 or 7 digits, you may think that your profit can still grow. So, you don’t take profits, and before you know it, you’re back down to 5-digit profit. You didn’t have an exit plan.

The market will most likely start pumping in the next couple of months. Everything seems to be in place for this. Check our recent video on this topic. As we just saw, take profits when they’re up for grabs. Don’t let your greed turn into regret.

When to Sell Your Positions?

The next exit window is most likely during late 2024 or early 2025. Once $BTC gets to a new ATH, FOMO (fear of missing out) will start. Add some euphoria to this, and we’re all set for the next bull run leg.

We will likely see a top around December. So, during or shortly after the US elections. During FOMO, the ‘dumb’ money or retail, you and I, start to buy.  VCs, or the ‘smart’ money, are selling into the FOMO. Euphoria rules. Well, there’s no better time to sell than right at that moment.

So, have your exit plan at the ready. It will keep your feet on the ground. Don’t let fantasy and dreams take over. If so, you will forget to sell.

Prepare for the Coming Bear Market

Prepare for the coming bear market by sitting on your profits. The bear market will come, for real. Most likely during 2025. The time to sell will have a short time frame. Make sure to use it.

So, make sure to make the most out of this. We’re most likely looking at the final leg of this bull run. Once more, sell your profits, and put them into Bitcoin, gold, or $USD. This will give you a solid cushion during the bear market.

Liquidate All Your Altcoins During the Next Leg Up

If you sell your altcoins at the top, you can buy them back later, at a discount. Don’t wait for a market correction. There’s no need to rush. Also, remember that most altcoins don’t last for two bull run cycles. Each cycle is roughly four years apart.

In two years from now, you have a much clearer view of which projects are still around. Which projects are surviving the bear market? Now you can buy in again at a discount.

Stick to Your Exit Plan

You exited and had your profits. Now, stick with your plan and don’t gamble your profits away. However, there will also be random pumps. Don’t buy into these pumps. This could well be the last upward move before the crypto market crashes.

Don’t Buy the Top but Instead, Buy the Bottom

You made your exit, and you sit on your profits. Now it’s time to have a plan for entering the market again during the bear market. How much will you enter into $BTC, altcoins, or new gems?

A general rule is to buy back into $BTC when it crashes by 60%. For Ethereum, this can be at 70% or more. With altcoins, you’re looking at a 90% crash. However, keep in mind that the $BTC and $ETH ETFs may change the price dynamics. So, re-assess accordingly.

Take your exit plan seriously. If you don’t, the market won’t take you seriously. It will take your unrealized profits and leave you empty-handed. Make sure to make a mental shift once crypto gives you life-changing money. It’s time to shift from wealth generation to wealth preservation.

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