Crypto market is booming and in the upcoming years it will grow more, however anyone taking part in this market should be aware of all the pros and cons associated with it. Additionally, one should also be aware of the perfect entry strategy and its preceding crypto exit strategy as well.
Successful business giants have a pre planned “exit plan” which they often mention in their interviews or other occasions. Therefore, in this post we are gonna breakdown 5 best crypto exit strategy which will benefit you in 2022 and the upcoming years in the crypto world.
5 Perfect Effective Crypto exit Strategy
- Exit & sell at price target
- Dollar-cost average out
- Exit by return
- Exit by cycle
- Exit by portfolio
Lets discuss each of them in details to give you an effective strategy of Crypto exit.
1. Exit and sell at Price target
This strategy is included as one of the pro crypto secret. It involves in generating better profit by dividing the whole Bitcoin into 5 different sections or as many sections as you want and release (sell) them , when the market hits different prices.
For illustration: Suppose you have a whole Bitcoin, when it hits 100k market value, try to divide it into 5 different sections (you can go for more sections if you want) instead of exiting the position with only one position.
2. Dollar cost average out
This strategy serves the twin purpose of both entering the cryptocurrency market and exiting the crypto market as well and is considered to be ideal by the business giants. You can fix the plan of selling of a day, week or month, followed by the percentage you want to sell.
For illustration: A week with 10% and a smooth exit out of the market within 10 weeks having your profit in your hand again.
3. Exit by return
Suppose you got into Dogecoin when it have a market value of 1 dollar, the time you bought it you should have a clear vision on its selling plan. So, for e.g. when dogecoin hits 2$ you planned to exit and sell 505 of your position and involve the house money plan or any other plan. It is essential to note those strategies and stay with it for a desired returns.
4. Exit by Cycle
The validity of four year cycle doesn’t comes with any guarantee but still people are pursuing this strategy and is therefore its popular among them. Most of the investors analyze the cryptocurrency performance cycle and then begin selling and collect the profits while exiting the market of crypto.
5. Exit by portfolio
This strategy is based on exiting the crypto market on the basis of your financial goals. However, this goals is of an individual only.
For illustration, you have invested 9,000 USD in the crypto market and for buying something or paying your rent you need 25k . That time it is exit when the crypto market hits 25k ignoring the increasing price of the market.
This strategy is not suitable of everyone, but can be beneficial to many individual in their personal need.