5 CRYPTO EXIT STRATEGY FOR 2021!

when you enter into the crypto markets it is not only important how you enter into the markets but how you exit the markets many times you have probably heard people talk about their exit strategies but the problem is many people don't share what their exit strategy is and that is because everyone's exit plan is very different well in this video i'm going to be going over five different exit strategies that you can implement into your plan so hopefully by the end of this video you'll have a better idea of what to use and what not to do first i do want to mention that there is no right or wrong way in how to exit the market but it really comes down to how you want to exit the market on top of that i do want to mention that i am not a financial advisor nor anything that i share on this channel is financial advice so make sure you guys do more research outside of everything that i share after this but other than that guys let's begin three things i want to set before i share my five points the first one is you need to know what your goals are is it to make only 10 but do that a hundred times over and over again is it to double your holdings or is it just to hold long term second of all you won't know your strategy until you actually try different types of strategies and you'll figure out what works and what doesn't work for you a lot of times people will share their own strategies and although two people's strategy can be very similar it'll never be identical and that is because of three factors number one their account size number two their holdings and number three their goals all three different and number three you will learn how to strategize your own plans but it will never execute perfectly and that is because the market can pivot anytime in any direction so always be ready to make changes and adjustments depending on where the market goes remember that the cryptocurrency market is running 24 hours a day seven days a week it is always running so there's always opportunities in the market so don't feel like you have to time everything perfectly because you can always enter back in well with that said the first strategy that you can use is to exit and sell at price targets for example say you own one whole bitcoin instead of exiting out of your entire position when it hits like 100k you can divide that up into five different sections or however many sections you want to divide it up to so you can grab one whole bitcoin and divide it up into five different sections you can sell 0.2 bitcoin when it hits 90k point two bitcoins one at 100 110 120 and 130 and you'll be completely out of the market by the time you've scaled out you'd be sitting on 110 000 in cash after you sold your position now you might be thinking why not just sell everything at 130 if you're planning to sell at 130 and that's because there is no guarantee that bitcoin will actually hit 130k what you're doing is you're profit-taking along the way and securing your profits that way when the market does dip at least you took profit and if the market dips lower you can accumulate more bitcoin with the profit that you took so it's going to be a win-win situation overall the goal is not necessarily to time the market and try to figure out where the top is because no one can figure out what their bottom is no one can figure out what the top is but there is a lot of money to be made in the middle so let's not get too greedy and take profits along the way this strategy can be done with all coins and the reason why this strategy is so popular amongst a lot of investors it is because people can plan out their exit strategy accordingly and they can figure out how much cash they'll be sitting on by the time they are fully exited out of the markets of course you do want to set more realistic price targets and that's going to require more study and research you can use tools like the stock to flow model uh the bitcoin logarithm with the growth chart and you can also use something like the fibonacci retracement tools to figure out where general price targets could be if you guys are interested in learning more about the cryptocurrency space feel free to check out the patreon group link down below it is where i share a lot of my technical analysis when i buy what i buy and when i'm planning to sell along with my exit strategy and on top of that i do give more in-depth market analysis that i don't share on this channel when you join the group you'll also have access to the discord group where we're more actively engaged where we share more of our questions our general market updates buy and sell and all that stuff feel free to check it out again link down below but number two it is to dollar cost average out now just like how people dollar cost average into the market you can also dollar cost average out if you're not really familiar with what dollar cost averaging is say you have around 10 000 instead of making one giant 10 000 purchase you're dividing that up into 10 different payments for example and you're buying 1 000 worth of bitcoin every single week that way your buy is spread out instead of condensed that we can buy the highs and the lows and you'll average in your price now you might have heard of dollar cost averaging out from other people but how does that look like when do i start and those are good questions for example say you believe in the bitcoin four year cycle if that's the case then that means that the peak of the market should be around december that means starting september you should actually be exiting out of your portfolio every single week how much five percent so starting from september the first week of september you're gonna be exiting at five percent the second week five percent and five percent and you're basically exiting five percent of your portfolio every single week until your portfolio comes down to zero or you can wait till october and exit 10 of your portfolio every single week for 10 weeks until you're completely out basically you choose the percentage amount that you want to exit out of the market you choose a preferred timeline it can be every day every week every month and you stick with that strategy consistently until you dollar cost average out of the market the third strategy is to exit by return say you got into cardona when it was at one dollar well the moment you bought it you should have a general idea of when you plan on selling it so for example you could say hey when it hits two dollar i'm gonna exit and sell half of my position and play with house money right or you can say i'm gonna 3x my money through cardano when it hits three dollars i'm gonna exit out of the market i've triple my money i'm gonna be happy with that and it's important that you actually write those strategies down and actually stick with it because it's easy to forget right because cardano when you bought it at one dollar it hit almost three dollars at that point you're extremely euphoric and you're not really thinking about exiting anymore because you're probably thinking you know what i'm gonna hold this until it becomes five dollar and then when it hits five dollars you're gonna be i'm gonna hold it till it's seven dollars and then nine dollars and eleven dollars on the patreon page i've already shared my cardano exit strategy and i'm gonna stick with it right as cardano slowly approaches my price target i'm not gonna change my mind and be like you know what i think cardano can go higher right instead i'm going to sell at my price targets because that's the plan that i made when cardano was sitting under a dollar and so it's easy for your emotions to take over greed to take over and kind of have this i'm gonna hold but i don't know when to sell so by the time that cardano hits my price target i'm gonna make an enough amount of return that i'm gonna be satisfied with and i'll be okay even if cardona continues higher number four is exiting by cycle now this is another popular strategy that a lot of people are actually following but there is no guarantee that the four year cycle is actually valid it's still a model that is valid but it can be broken anytime when we look at the past three cycles we can see that from the having we kicked off and started the bull market now the past two cycles we peaked out sometime around december a lot of people are assuming that this cycle will be the same and we'll top out sometime around december as well if you've done your study and your due diligence and you're convicted that the top of the market this cycle is going to be december then those people are not going to be taking any profit any time soon all the volatility is just basically noise they're continuously accumulating and when it hits december that is when they'll begin to sell and take profits because that was their strategy and that was their plan if you believe in the lengthening cycle of bitcoin that means that the top will be sometime around the first half of 2022 meaning that they'll hold through 2021 enter into 2022 without selling their position until it hits like march april may and that's when they'll consider exiting because that's when they believe that the top of the market is for the lengthening cycle last but not least it is to exit by portfolio in other words exiting out based off your financial goals now this strategy will really depend on one's individual goal but for example let's just say that you have ten thousand dollars invested into the market but you need twenty five thousand dollars whether it is to buy a new car pay off debt pay for college or even buy equipment for your business when your portfolio hits 25k you will exit out of your position to lock in profits to make sure you have 25k for your financial goals and needs regardless if the market continues higher or not because the market could do another 2x right and you could have had 50k right but you have to be okay with the profit that you took to do what you needed to do this isn't a strategy for most people but it is gonna be for some people and i've personally used it myself as well you know december of 2020 i sold some of my crypto positions to pay the rest of my debt off right i use around 12k got it up to 20k sold my position and paid off the rest of my debt did the market continue higher absolutely right but i was able to be debt free and never have to think about debt ever again and for that i'm okay and i was okay with the decision that i made but vice versa i had to pay taxes by a certain due date and i told myself once my weeble portfolio hits this amount i'm going to sell and use that money to pay for my taxes and so i sold a lot of my litecoin position when it hit around 400 and then after i took profits it dipped so in hindsight yes did i take profits too early at 2020 yes but i met my financial goals did i know that litecoin would dip after it hit around the 400 mark absolutely not right but everything worked out because i stuck with my strategy and just another reminder the cryptocurrency market never sleeps right it is running 24 7. it will give you another opportunity to enter back in right i sold early in 2020 but i still got an opportunity to enter back in and make those gains to pay off my taxes so don't feel like you ever missed out because you have another chance later on as well now before in this video i do want to share three tips that will help you understand and determine your exit strategy and the first one is just to mix and match some of the ones that i've shared above five that i've shared is not necessarily the best or the worst right it is what works for an individual with their certain financial goals now there are other exit strategies and plans out there that involve more technicals and more strata i mean there's there's a ton of ways to do this right but at the end of the day you want to pick a strategy that works for you because the market's going to be around for at least another 10 years in my personal opinion and during that 10 years you don't want to constantly depend on another person of when to enter and when to exit you want to educate and you want to learn and learn how to navigate these markets that way you can make your own personal decisions for your own personal financial goals tip number two is you don't necessarily have to exit out of the markets because if you are exiting out of the market you are also planning to re-enter into the market or using that money to purchase whatever you need to purchase right but what if you don't really want to purchase anything and what if you don't really need to sell you know your positions because you don't want to pay any long-term or short-term capital gains then you can hold your funds and accounts like celsius block fi crypto.com and earn interest on your cryptocurrency to accumulate more over time and sell when you need to and if you ever need funds you can pull loans out against your bitcoin or your cryptocurrency through block fi and through celsius right now i am on the celsius app on my phone and if you want to learn more about celsius you can click the card up here or link it down below it's the video that i made right before this one but right now i have around 93 000 worth of bitcoin in my account if i go to the bottom right corner i can click on borrow i can apply for a loan and then i can borrow dollars say i need twenty thousand dollars because of some sort of emergency i can choose collateral choose bitcoin and it's a 25 loan to value meaning that if i own a hundred thousand dollar worth of bitcoin i can pull up to a 25 000 loan right at a zero percent apr right now i think this will change but right now i do live in california and they do have a zero percent apr it's pretty much free money right it's pretty crazy uh locking up 1.6 bitcoin as collateral i can choose 36 month because i can choose to pay back early any time it's going to be zero dollar interest bank account i would add my bank information and 20 000 will be transferred into my bank account and because that 20 000 that i just pulled out is technically debt i don't have to pay taxes on that and because i didn't sell any of my bitcoin positions for realized gains i don't have to pay taxes on any of that at all right and so you're basically pulling out free money or low interest money being able to spend that without ever selling your bitcoin so technically you don't necessarily have to sell your position if you plan on holding it long term and if you do see bitcoin going to 100k might as well hold and accumulate today and tip number three is practice taking profits i think when it comes to taking profits people are sometimes like why are you taking profits why don't you just hold long term because that's how you're gonna make long-term generational wealth and i do agree with that right but there is going to be a certain point where people will take profit and the reason why the market is so fluffed up and pumped up it is because of leveraged traders and leveraged traders guess what they do they don't hold right they sell out of their positions and when they sell that is when the market will sell off drastically and so will the market dip absolutely right it is better for you or my personal opinion to sell your position and pay taxes on those gains rather than holding at a loss and panic selling right or being stressed over and wishing that you sold at the top and paid taxes of course you do want to consider taxes within your strategy so for myself i did accumulate a lot last year and so anytime that i sell starting today it's going to be short-term capital gains so i'm going to pay less taxes on my gains whereas any time i've accumulated the past couple months i'm going to have to pay short-term capital gains if i choose to sell within the next four three two months but if you're worried about like how do i keep track of all my numbers and you know my transactions my gains and my losses i personally don't keep track of anything right uh at the end of the year when it comes to the tax season i actually use a tax software called cryptotrader.tax and i've created a video on this if you want to check it out link down below but it's really easy you just you know input all the numbers the transactions and it runs all the numbers for you pops up a document and you use those numbers to input into your tax software or give it to your cpa well other than that guys hope this video gave you some perspective and allowed you to see how to exit the market from a different angle if you guys enjoyed this video please give it a big thumbs up consider checking the patreon link group down below but other than that guys i'll see you guys in the next video over goodnight good morning adios

Channel: Eddie Moon

Views: 141,756

Rating: 4.9496765 out of 5

Keywords: crypto exit strategy, crypto exit plan, crypto exit plan 2021, crypto when to exit, exit crypto, top cryptocurrencies to invest in, best crypto, best crypto to invest, bitcoin, top crypto to invest in, passive income crypto, cryptocurrency, crypto, top crypto 2021, crypto 2021, which crypto to invest in, best crypto to invest in 2021, crypto top picks, 5 Crypto Exit Strategy REVEALED 2021!, eddie moon, when to sell crypto, crypto exit strategy 2021, crypto exit strategy example

Id: d1wB5tuaP20

Length: 14min 31sec (871 seconds)

Published: Wed Aug 25 2021