Crypto 2025 – Pre-Planning Your Exit Strategy

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2 Jan 2025

Don’t Wait!
One of the worst mistakes you can make in a bull market is not making the preparations required for a smooth transition near the cycle top. This is especially true if you have multiple positions, opportunities, and yield-bearing investments. Every situation is unique and so one must devise a plan that individually addresses each position or opportunity within your portfolio. Not every portfolio is an investment portfolio.
Many Crypto enthusiasts have yield-bearing portfolios consisting of opportunities such as DePIN, DPoS, and other DeFi and passive income ideas. Income ideas that earn fiat currencies or stablecoins can be excluded unless, of course, altcoins are being utilized to produce a stablecoin income. Many investors within the Hive ecosystem will liquidate their altcoin positions in favor of HBD once they discern a cycle top.
Because each situation is unique, points of interest must be highlighted in advance. This is related to price, time frame, and other key levels. Many investors have a figure in mind regarding their profit-taking strategies. This can be a good idea. However, an unrealistic expectation will mean your target won’t be realized and so you will suffer the same fate as those without an exit strategy. This reveals how important it is to remain up-to-date and prepared.
Perfection Is An Illusion
Everyone would like to call the market top perfectly, unload, and experience maximum profitability. This however is unrealistic. Planning and paying attention to each aspect of your portfolio is your best chance at maximizing the bull market effect. I have only timed a market top perfectly once. This was in 2017 when BTC hit $20K. I knew this was a psychological number and wasn’t going any further.
I sold on the day of the all-time high. I must check if I can access that account, as the records should still be available. In the previous cycle, I made a significant exit at $65K before the market topped at $69K. This was a partial exit and incorporated various favorable elements. The remainder of my portfolio was sold once I discerned the top was in and another bounce was unlikely.
There were many dead cat bounces that followed, which are bounces that give way to lower lows. This is classic bear market behavior. The point is I was watchful and decided to capitalize on profitable positions. With the affirmation of hindsight, this was an imperative decision regarding surviving the bear market that followed. You have to plan and be watchful.

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Drawing lines in the sand is important for any financial market participation. Emotions have to be kept in check. Discipline is the name of the game and without any predefined decisions and strategies, emotions will rule. An emotional investor stands very little chance of getting anything right. They will always hold on for more or avoid selling out of fear. Disciplined investors have a game plan and make disciplined decisions regardless of emotion. This should always be your aim.

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Final Thoughts
Planning is crucial in a bull market. Thinking that you can sell at the peak is foolish. How will you know it is the peak? How will you discern the appropriate course of action if you have not pre-planned it? The truth is, those who fail to plan don’t sell. These are the bagholders that news agencies mock during a full-blown bear market. Don’t be that guy. See you next time!

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Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.