You don't have an exit plan, do you?
It's time to change that with the best guide in crypto.
The market pumps, Trump gets elected, you're looking at Lambos, but there's one thing missing.
You didn’t sell.
I first wrote about this on X and it went viral with over one million views! Sounds like we need to explore it in more depth. Let’s go.
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The biggest mistake in crypto is not that you bought meme coins or similar high-risk tokens.
No.
The biggest mistake is never selling and exiting your positions! This is how you roundtrip back to zero. Just like this guy. Lets explore that further.
There are five actions you must take to win at this game. Lets start with the most important.
Have an exit plan
That guy didn't sell and his $4 million paper profits turned into $77,000. I'm here to teach you how to avoid that rookie mistake.
TLDR: Sell whenever it is life-changing! The long version starts next.
When the market pumps fast, like it will again, greed takes over! You just made $4 million in a few weeks, costs nothing to wait a few more, right?
WRONG!
Don't let greed turn into regret. If you're five to six zeros in profit. SELL.
Next is when.
The exit window will likely be end of 2024 or early 2025. FOMO and euphoria will start when BTC makes a new ATH. The top will come at or just after the US elections, this December most likely.
Trump is 100% into crypto, so the narrative works perfectly. Why?
Dumb money (you) will buy the FOMO, while smart money (VCs) will sell into it. There is no better time to sell than when the market is euphoric!
Having an exit plan helps, it grounds you to reality. Otherwise, fantasy takes over and you forget to sell.
Study the crypto pyramid. If you’re at the bottom, then the odds are stacked against you and most of the information you are fed is false. Understand how the game is played and when your pockets are full of cash, exit the crypto casino.
Next is important!
2. Prepare for the coming bear market by sitting on FAT profits
Newsflash: the bear market is around the corner!
Trust me, it's coming. HARD. Likely in 2025. There's not much time left to sell. If I’m generous we got 6 to 12 months left. Maximize this when the market starts pumping again.
I expect one more massive pump, then the market will turn. You have one last opportunity to sell. Don't miss it. Some argue the top will be later in 2025. However, so far, the price action shows this cycle was faster with BTC making a new ATH in March 2024. This was before the halving in April!
Should this trend continue, the market can also top earlier. Either way, follow the price action, nothing else. Don’t trust influencers to have your best interest at heart, go back to the crypto pyramid above and study it to understand why.
When you exit this market, you do it by selling into BTC, Gold, or USD. If you plan to hold altcoins, you must be new. Next is why.
Plan to liquidate all altcoins during the next pump
Sell them all, then wait while the market corrects. Altcoins crash 90% to 99% in a bear market. You buy back the discounts a year or two later (more on that soon). Don't rush!
Everyone loves Solana right now, but look what the previous bear market did to its price! 99% of altcoins will look like this when the next bear market comes. Do not bet on it being different. Instead, plan for this exact scenario.
Use those profits wisely and buy the panic - it will come! And for the love of God, don't buy back if the market pumps more.
You had your exit, stick with it! Don't gamble
A quick way to lose those profits is to re-enter the market during a random pump. Instead, you may be buying the last wave up before the crash.
I recommend waiting one to two years after the market tops before you should consider re-entering. Waiting one year is the minimum! That means you do not touch or even think about pressing the buy button. Just forget about crypto in that period.
The only exception are new projects that innovate in some way. But even there, the risks are high. Nevertheless, being early can be decisive. Whatever you decide in such cases, never go all-in into an altcoin. NEVER. The only exception is Bitcoin.
After you sell and sit on FAT profits, it's time to plan your re-entry into the market.
Instead of (re)buying the top, plan to buy the bottom
Look at your profits and make an allocation plan for the bear market. How much BTC to buy? Alts? New high-risk coins?
Rules next.
A good general rules is to buy altcoins ONLY when they crash by 90% or more! In the above Solana chart the price crashed by 97%! In the case of Bitcoin, buy only if it crashes by over 60% from ATH. For ETH 70% or more.
Note that the ETFs may change the price dynamics in the coming bear market for BTC and ETH. Update your exit plan based on new data, particularly at the end of 2024. By then we will have a clearer view if my above assumptions are on target or not. Either way, I will update you later in the year, just follow this newsletter.
If you don't take this serious, the market wont take you serious either
It will take all your profits and run away with them. But you will do better next time.
If you stick around.
I've seen enough cycles and know what's coming. Most don't. You know why? Because we are still early in this emerging market! Crypto just got its first ETF, presidents talk about it now. It took a long time to be here.
But it's only the start!
There's more coming and you can make a huge fortune in this space with one condition.
If you take it seriously!
It's all fun and games until you see five to six zeroes in your wallet. Those can have a life-changing impact.
Don't let it slip.
That will be your signal to shift your mentality from wealth generation to wealth preservation.
Most fail that transition and pay a heavy price for it.
It means you secure your new-found wealth. You don't gamble it on meme coins. But only a degen can make millions out of nothing. Yet, only a degen can lose it.
So what do you do?
You grow up. You graduate.
That usually means you focus on Bitcoin. Most will naturally end up here by the virtue of what BTC represents. It's the ultimate tool to protect your wealth!
But you got to have it first. So go on and be a degen, but learn when to stop!
This is based on my story, yours can be different. But the lessons are always the same! One way or another, the market will humble us all. But you have the ultimate power:
You decide when you enter and exit this market!
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All info is provided for educational purposes only and is not financial advice.
Thanks for the great overview 🙌 HODLing strong 💪🕵️♂️
This is gold, thanks Duo!