One of the most-asked questions I get is: "when do we cash out?"
I have developed a basic crypto cash out and exit strategy that I hope you'll find useful. This is not a 'cash out and re-buy later' strategy, this is a basic plan for cashing out into your currency. But not all of it...
We should keep 10% of our cryptos no matter how high in price they may reach. In the example below, you'll see the Bitcoin exit plan. You don't have to have a full bitcoin to follow this plan; we can still implement it if we have a fraction of a bitcoin, such as .15 BTC. We always keep 5%-10% of our holdings and never sell all unless we have to.
Feel free to mirror it, or use it as a guide. Hopefully this will get you started in creating your own exit plan for your unique portfolio.
Bitcoin Exit Strategy - Sell All But 5%-10% (see below)
Selling Point: $19,700 | % to be sold: 10%
Selling Point: $49,700 | % to be sold: 10%
Selling Point: $79,700 | % to be sold: 20%
Selling Point: $119,700 | % to be sold: 20%
Selling Point: $149,700 | % to be sold: 20%
Selling Point: $199,300 | % to be sold: 10%
Keep the last 5%-10% of your BTC for the possibility of a bigger up-cycle or to pass down to your generation.
Ethereum Exit Strategy - Sell 50% Of Holdings If/When We Reach The Prices Below
Selling Point: $990 | % to be sold: 5%
Selling Point: $1990 | % to be sold: 10%
Selling Point: $3950 | % to be sold: 20%
Selling Point: $5950 | % to be sold: 20%
Selling Point: $7950 | % to be sold: 20%
Selling Point: $9950 | % to be sold: 25%
XRP Exit Strategy - Sell 75% Of Holdings If/When We Reach The Prices Below
Selling Point: $3.15 | % to be sold: 5%
Selling Point: $9.90 | % to be sold: 10%
Selling Point: $19.50 | % to be sold: 15%
Selling Point: $29.50 | % to be sold: 20%
Selling Point: $49.50 | % to be sold: 20%
Selling Point: $74.70 | % to be sold: 10%
Selling Point: $99.10 | % to be sold: 10%
Bitcoin Cash Exit Strategy - Sell 25% - 50% Of Holdings If/When We Reach The Prices Below
Selling Point: $3950 | % to be sold: 10%
Selling Point: $9950 | % to be sold: 10%
Selling Point: $16,700 | % to be sold: 20%
Selling Point: $23,700 | % to be sold: 20%
Selling Point: $34,700 | % to be sold: 20%
Selling Point: $49,700 | % to be sold: 20%
I don't see Bitcoin going to $1M like some are predicting, but I do think $200K is achievable, maybe $250K.
Ethereum should go to $20K, more than double the bottom cash-out price. In this example, we're selling half our ETH, and then hold the rest in hopes for selling ETH at an even higher price.
XRP, the most controversial of all cryptos, could hit some really big numbers if it's pegged, tied, backed or has a correlation to gold. It sounds crazy, but perhaps more than $100. Sell about 75% of your XRP using the graph above as a reference, and hold the rest for a possible bigger payday. Note that even if XRP (or any other crypto) doesn't reach the projected price targets, we'll still secure a tidy profit by laddering-out as the prices go up.
Bitcoin Cash reached an all time high of $4000 a few years ago, and this should be reached again with no problem — and then some — during the next cycle. The insider who I'm in contact with regularly, who has a sibling that works for the IRS; predicts unfathomable numbers for BCH. $1M in five years to be exact (near my $250K price prediction in 6 years),
I plan to sell no more than 50% of BCH via the above chart, and keep the remainder for the bigger payday a few years later.
Theta Token Exit Strategy - Sell 75% Of Holdings If/When We Reach The Prices Below
Selling Point: $4.90 | % to be sold: 10%
Selling Point: $9.80 | % to be sold: 10%
Selling Point: $19.70 | % to be sold: 20%
Selling Point: $39.50 | % to be sold: 20%
Selling Point: $59.50 | % to be sold: 20%
Selling Point: $98.50 | % to be sold: 20%
Notes: I predict Theta will go to $20 next year. Since this is a bitcoin halving year/cycle, prices can go higher than what was projected. It's possible we'll even see $20 in 2020, even if a long-shot— especially with some really big news to be announced on the 27th— a possible partnership with NetFlix, Hulu, YouTube or some other large 'gig', according to talk in the Theta Telegram channel.
With the above plan, 75% of our THETA will be sold if we reach $98.50; the remaining 25% we'll hold for the possibility of even bigger numbers in the future.
DigiByte Exit Strategy - Sell 75% Of Holdings If/When We Reach The Prices Below
Selling Point: $.13 | % to be sold: 5%
Selling Point: $.39 | % to be sold: 15%
Selling Point: $.69 | % to be sold: 15%
Selling Point: $.98 | % to be sold: 20%
Selling Point: $1.97 | % to be sold: 20%
Selling Point: $3.94 | % to be sold: 25%
Notes: We can sell 5% of our DGB at $.13 which is $.01 under its ATH. Once it passes this threshold, there will be resistance levels of $.40 and $.70. The $1 barrier will be the most difficult to penetrate, so we can sell 20% of DGB a few cents before $1. $2 and $4 would be the next price targets, which should be easier to break than the $1 target. We should hold the remaining 25% of our total DGB and sell most of it for a possible $5 and $10 price target a year or two (or maybe three) out.
(We can use a similar chart for Zilliqa (ZIL), but the first sell point will be at $.095 instead of $.13)
Chainlink Exit Strategy - Sell 50% Of Holdings If/When We Reach The Prices Below
Selling Point: $18.99 | % to be sold: 5%
Selling Point: $29.70 | % to be sold: 10%
Selling Point: $39.50 | % to be sold: 15%
Selling Point: $64.90 | % to be sold: 20%
Selling Point: $89.20 | % to be sold: 25%
Selling Point: $115-$119 | % to be sold: 25%
Notes: Since I see big numbers for LINK, we're selling just 50% of our holdings if or when it reaches the $115+ price point. The other half of LINK should be held for possible $200 or higher price targets. Even quadruple digits are possible in three years time ... with the flood of money coming into cryptos, and with a shrinking supply of Chainlink on the exchanges...
... a more-than-likely supply squeeze is coming. Low supply could catapult LINK into bigger numbers. And with Chainlink staking coming probably later this year, the perfect storm is brewing for our beloved decentralized oracle.
Tezos Exit Strategy - Sell 50% Of Holdings If/When We Reach The Prices Below
Selling Point: $14.94 | % to be sold: 5%
Selling Point: $24.80 | % to be sold: 10%
Selling Point: $34.90 | % to be sold: 20%
Selling Point: $59.90 | % to be sold: 20%
Selling Point: $85.70 | % to be sold: 20%
Selling Point: $97.50 | % to be sold: 25%
Notes: Tezos could reach $100, or possibly double that in the future. We should sell up to 50% of XTZ using the above chart, and keep the remaining half for a possible multiple $100 payday in '21 or '22. Tezos staking on Coinbase (and probably Chainlink staking in the future) will be keep Tezos in demand by the masses.