Missing out on a crypto bull market is tough, but what’s worse is watching your crypto wealth skyrocket only to crash before you can take profits.
In the latest Cointelegraph video, we explain how to build your crypto exit strategy in a few simple steps.
Taking profit means turning your digital gains into real money. There are two main ways to cash out in crypto: convert your assets into stablecoins and transfer them to your crypto wallet, or sell your crypto for fiat and transfer the money to your bank account.
Deciding when to sell, which crypto to sell, and how much to sell depends on your financial situation, life stage, risk tolerance, and investment goals.
Avoid trying to time the market perfectly. Instead, set clear price targets for selling your crypto and determine the percentage to sell at each target. For example, if you invested $25,000 in a particular coin, you might sell 20% when your portfolio reaches $50,000, 30% when it reaches $75,000, and so on.
A popular strategy is the “house money” approach: when your investment significantly increases, cash out your initial investment and let the profits ride. This minimizes emotional stress, as you’ve already secured your initial funds.
Remember, transaction fees and taxes can impact your net gains, so account for these costs. Ultimately, while holding crypto is beneficial, the goal is to use the profits to improve your life. Developing a disciplined exit strategy is key to achieving this balance.
To find out more about how to best take profit out of crypto, check out the full video on our YouTube channel and don’t forget to subscribe!
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