After a recent Facebook post and live stream in the same week addressed the need to have a exit strategy in this cryptocurrency market, I began to think about devising my own strategy.
Before Bitcoin and cryptocurrency mania began, I had heard of the alternative to fiat currency about 6 years ago. Then Andreas Antonopoulos made his first appearance on the Joe Rogan Experience (JRE) podcast 3 years ago, for the second time my interest in Bitcoin had been piqued. Once again, I had the same problem that had perplexed me, when I learned of its existence 3 years earlier, how do I get my hands on a Bitcoin? I didn't have an online business in which to offer Bitcoin as a form of payment and was turned off by exchanges as the incident at Mt. Gox had occurred only a few months prior to Antonopoulus' appearance on JRE.
Anyway, by many twist and turns of events, I am now in a position in which it's possible for me to not only have the money to invest but a platform in which I feel comfortable. For the past few months, August until present, I have been consistently, inconsistent about investing in various cryptocurrencies. In the short time I've invested a good deal of money and saw my investment more than double. Meanwhile, an investment I acquired at the beginning of year, which is automatically deducted from my account on a daily basis and has three times the amount invested, has only profited a couple hundred dollars. After reviewing projections of what I will have at a modest 7% gain over the next 10 to 20 years, left me feeling as if I'd probably never be able to retire or need to do something very different.
Now, what does any of the above have to do with a cryptocurrency exit strategy? What if, in the next 3-5 years, I could get myself close to the number the mutual fund projected, I would have in 10 years or dare I say, 20 years? Or do I continue to just let it ride, hoping to avoid another future 80% dip?
While, I have heard all the acronyms HODL (hold on for dear life) and FOMO (fear of missing out) as well as FUD (fear uncertainty and doubt), I feel like I am suffering from all of them, sometimes at the same time. While I would like to adopt and employ the Warren Buffet strategy of holding onto investments and never selling, I have never found it realistic to keep anything for 50+ years.
Then I wonder if in a couple years, if I do decide to pull out the profit of my investments and the cryptocurrency becomes globally adopted and accepted, I will have now converted my coins into a high inflationary fiat currency. While it is easy to pull out the interest on the principal of a fiat currency, taking any profits in cryptocurrency will inevitably involve me selling some of my coins. However, at times I feel as if I want to virtually hoard all my cryptocurrency and not let a single satoshi, ether, or latoshi leave my hands.
As it currently stands, I am still contemplating what my next moves will be in this cyptocurrency game. Do I exit once a certain dollar amount has been reached? Do I wait until I receive a specific ROI? Or is there a specific timetable in which regardless of what is happening in the market, I exit and hope that nothing catastrophic happens in the meantime?
What are your plans? Do you have an exit strategy?