Bitcoin Forum

I'm fairly new to crypto. Have bought some through coinbase. But looking to transfer to a hard wallet. My question is this. Let's say all of us dreamers and pumpers dreams come true and bitcoin and crypto take off. We all have a number in our head of what we would sell some or most of our crypto if it reached that number. What is your exit strategy? Did most of you buy through coinbase and will just transfer back into there? Would they be able to support millions of people withdrawing hundreds of thousands of dollars? Crypto seems fairly liquid but again if it shoots to the moon, how liquid will it really be?

You should at least take partial profit on the way up. The way up on the last bulkrun wasa good distribution of smart money to dumb money. Dont be the dumb money buying the top, but take some profit off the table.

When it comes to exchanging (trading) i do not prefer to trade with coinbase, i use binance so if i was to sell it'll be binance. Apart from altcoin (inwhich i sell all my holdings each time i make 10x) i haven't sold all my bitcoin holding so i don't have a exit strategy for bitcoin instead i sell when ever i need to take profit and rebuy when the market dips.

If you're referring to Coinbase as some exchange that people can trade their bitcoin so, yes, I'm sure a lot of crypto enthusiast practice that basic principle. Luckily though, I used a local exchange wherein we can trade and can easily exchange it to our local fiat so no problem with us, although there is a KYC procedure (if you're not aware of it).

As for exit strategy, I guess if you have made a lot of profits then nothing wrong booking it, as long as you make a decent then why not? Coinbase is one of the best exchanges out there so I won't be worrying about the withdrawals, but there might be limits though.

Rufiefairy, for a new user you think very good, security is most important thing, and to move your coins to hardware wallet is currently the best you can do to protect your investment. In case you hold coins on any exchange, you do not have control over your private keys, and at any time you are exposed to possible loss due to hacking or some other unforeseen situation.

Also your question about how exchanges will handle all transaction in case most of users decide to withdraw is very important, we see that situation was pretty bad at the end of 2017. We can only hope that big crypto exchanges learned something, and that they work to improve their infrastructure. There is also problem with transaction speed&high fees, but now we have SegWit which adapted pretty well, and Lightning Network which is developing very well.

I think you should not bet only on one horse, in this case Coinbase, but also try to find some other cash out solutions. Crypto ATM may be good choice if you have one near you, or you can trade on LocalBitcoins with lots of caution and with trusted members.

It is unlikely that everyone decides to sell a the same time frame, but as an investor, you should have a strategy, which builds upwards and not just a one off sale. This is also a good way to purchase tokens.

Also if the price shoots up, this would increase the FOMO around bitcoin and attract lots of demand and conversely increase the liquidity.

You can't even get out from the crypto market after reaching desired value for your crypto because human nature is greediness so they will ready for another set of goals and it will keep continue so I am also one of its kind but I will sell a part of my holdings after it reaches the value and holding the remaining with more prices.

Actually, I buy a little BTC per month from my savings and waiting for skyrocketing but if you think you can make a lot of profits in just a few time it is not possible and also my exit point is to take a little profit and re-buy BTC again from my profit.

Agree its not possible, as many there is people in the world as many there is purposes for holding BTC. For some its retirement fund, for some store of value, for some get rich quick scheme, for some its dream come true, for some its only technological innovation.
You can go on and on like this. Truth is liquidity and huge price swings can only be caused by panic caused by big event like really critical bug that cannot be fixed in days.

It is good to have an exit strategy but in most cases bitcoin holder don't have an exit strategy due to being greedy. Being greedy is in human nature so you should find a way to increase your bitcoin by buying at low price (dip) and sell high (to the moon) and you will earn noore than you have right now.

This is not about greed, it is about having a plan, of someone plans on hodling unto their assets for more profits, that is a plan borne of greed, but is still a plan. Bear in mind you can sell early and also be wrong.
Investors who are focused on potential ROI should draw out their expected profits and time at which they expect it. This market is unpredictable, so things might not fall into your speculations.

If it was a significant amount of money there's no way I'd ever use an exchange or a selling service like Coinbase. I just would not trust them not to freeze me. They're twitchy at the best of times.

The only thing I'd consider would be an OTC service like Genesis Trading. You get your own fella to liaise with and an agreed rate. It's not worth risking becoming just another ticket number.

OP, you should start using a hardware wallet since you have bought your bitcoins already through coinbase.

I don't have an exit strategy, I'll sell and going to enjoy the profit that I'll get after but I never thought of leaving the crypto market. It's essential for someone who's new to the market to think of his exit strategy but as you stay here, you'll realize that it's here to stay.

Not coinbase for me but different exchange and others would start sending them back to any exchange that they prefer to start selling.

Only them can answer that and if they found something faulty, they will halt withdrawals and going to process transactions one at a time. But I think they can sustain all of those withdrawal requests if ever everyone is withdrawing.

The best is to prepare for an exit as early as possible and devide your change backs on several ways. I don't know any big exchanger, which I would entrust one big amount so the way is to minimize the risk of losses.
Choose more than one exchanger.
Build up or search for a trustable local community, so that you can exchange also without bank accounts.
Choose also more than one bank account. Not seldom money got frozen by banks. Be informed by law and taxes in your country. Keep also crypto amounts. I think, you will also be able to pay for daily life with crypto in near future.

Entry strategy is rather more important than an exit strategy. If you bought in at a low price, you would not be over anxious about getting the market into bull run. Entry cost averaging might be the best entry strategy at this current market condition where you buy in a fixed amount every month regardless of the price. Then when the bull run really does come, don't be afraid to set an expected return and sell it when it hits the price. As long as you avoid being greedy thinking that it will go up forever, you should do great with a realistic expected return percentage.

I do not lie to you. What is happening in the market today is a heavy reliance on stable shitcoins "BTC/USDT pairs" that are not tied to real paper money "$", which is a serious indicator of what happened in the global financial crisis of 2007.

What is different about BTC is that you can sell it p2p and can use it without the need for real money "CASH OUT", but the question what is the price that these people will offer?. So if the price goes up wildly, quick dumping may occur in short moments.

Buying btc from a saving account is not a good idea , the money in your savings are not volatile compare to bitcoin that surge or dip unannounced notice to the holders. It is very possible to still trade and make some profit if you understand the market trend very well.

The part you misunderstood was about buying/selling, but that was cleared up: usually it's not the companies/services you are buying Bitcoin from (they don't own Bitcoin unless they invested themselves like you did), instead you buy from other individuals.

Liquidity? Well, when Bitcoin reached ATH it was pretty liquid, everybody was happy to buy and sell. The problem is the price. When you sell, you'll have to find another individual or company that wants to buy your Bitcoin at a good price. For example, if the ATH has passed maybe you'll want to sell at 25k, but everybody else is trading at 15k. There will be liquidity, but your sell order will never get matched.

Maybe you should either log in to an exchange, either watch one of the markets like the rightmost column at https://cryptowat.ch/markets/gemini/btc/usd/5m where you see the amounts some want to sell and buy, the corresponding prices and how some of the orders get matched.

So one point is, if ever lots of people holds their precious BTC and it's price insanely increase to that so-called "dream price", how exchanges like Coinbase can support massive withdrawal?

My brief answers are:

a) Majority will not hold an insane amount. Since bitcoin price will increase step by step or should I say not a quick and instant jump to that "dream price", no one will anticipate that a dream price will happen another day. Therefore, continous and normal usage of spending or converting bitcoin to fiat is still the usual happening.

b) Different people have different definition of their "dream price". They will dump or sell their coins if they think it's now time to sell it.

b) Not all crypto users in the world uses Coinbase. Therefore that massive withdrawals will come at any different exchanges.

It's really hard to imagined that scenario will happen one day. So I guess just focus on today and just think about it once it happen. Your coins are safe somehow as you will stored in your precious hard wallet.

I never plan on selling all my bitcoins. That was one of my biggest mistakes from years ago -- deciding to sell everything because of a temporary bear market. By the time I bought back, I was buying back much higher than I sold.

My overall "exit strategy" is to take partial profit during future bubble periods. You can never know where the market will stop going up; all you can do is take some profit off the table when the market is skyrocketing. A year or three later, hopefully I can buy back my coins much cheaper, and then rinse/repeat.

I'm not too worried about Coinbase's banking infrastructure. The main thing that worries me is the size of their customer cryptocurrency storage. If they get hacked or embezzled, it's game over. Don't store your coins there!

I have accounts on several exchanges that are all verified and ready to go in case I ever need to sell off any of the coins I hold, and I also never plan on selling all the BTC and alts I hold, though I will and currently do sell off a little bit for personal needs and when prices rise towards an ATH like what happened in 2017.

P2P trading's always an option as well, though you won't get market price with most methods of payment on a P2P exchange like Paxful or Localbitcoins. I've never tried selling crypto for cash in person, though I do know some people that do.

I personally wouldn't worry about it. Everyone has different moons and people tend to be greedy. There's no way everyone will simultaneously call jackpot and cash out everything; people will always want more.

Heck, this scenario is far more likely to happen in the event of a huge crash or a massive FUD wave. You'd also have a lot more of a reason to worry about exchanges being liquid if the assets they're holding are bleeding.

So, not everyone are going to rush to exchanges to sell at the same time. A lot of people will be tempted to sell, long before the new ATH price will be reached.  ;)

The bigger exchanges have shown before that they could not handle the excess load in scenarios like this, so they frequently go down in runs like this. <A lot of these crashes are possibly initiated/faked by them in my opinion>

Every sell order will have to have a buy order, so if there are not a demand for the coins, it will just sit there until the order is picked up.

A lot of people turn to other platforms to sell their bitcoins in congested periods like this, because they learn from their previous mistakes.  :D

I don't usually use exchanges in processing bulk orders of cash outs. I have a contact who is willing to go 2-3% above market prices as an exclusive deal for me, and great below the market price whenever I want to purchase in bulk. For exchanges handling a lot of orders and processes a lot of trades, there is only a certain limit wherein their system could function, and it has been proven time and time again that their services can only hold so much up until it crashes (I'm looking at you, Coinbase.)

that usually happens on the way up, not on the way down.

it's during the bubble that exchanges are taking on massive growth over a very short period, so their trading engines can't handle the load. at the top (or after the bubble has already popped) there is less and less new money (new user growth) flowing in. so it crashes.

so i don't think it's manipulation. i've seen too many would-be manipulators get swallowed up by strong buying demand. bubbles pop because there's no demand left to sustain them. and then everyone starts panic selling into thin books, crashing the price.

Well I bought some litecoin last year when it hit 100, having a fairly good idea that once it broke that psychological barrier, it would go up.  I woke up 2 weeks later, and it was the day it went up to up to almost 400.  By chance I had woken up at the right time, and was able to sell some of mine near the peak, so I could bank some profit.  Since then, I have been slowly gathering some more, and I am looking at getting a cold wallet as I don't trust coinbase to hold my money, especially during the next bull run.  

I don't intend to cash out all my crypto, but I would consider myself a fool if I didn't sell some for a nice gain during the next bull run.  I'm just trying to figure out the best way to do that.  Last time, I had no problem with coinbase.  But if this next bull run is 30x what the last one was, I agree with you that posted that I should not just rely on one exchange.  I'm just trying to develop a good strategy because I have a feeling that this next run will be crazy and unexpected, and you don't want to try and do it on the fly.

As far as a cold wallet, I'm sure there isn't much difference. But does anyone have a preference of nano s or the trezor? Those seem to be the 2 most popular.   Or should I preorder the Nano X?

I think the exit limit is all in your mentality. You have to decide number that you are going to exit and stick to it and mind train yourself that you are satisfied or you will fall in the pits of greed. And until now, everytime the price went up, there were always "not really clever people" or fools(I must say) that invest on the rise. most cases in coins are pumping and when enough people invest looking at the rise, the ones with lots of money withdraw and people will be trapped.

I'm sure since we are different people we also do have different perspectives inside this industry, individually speaking, some might sell right away after the wave, some will still holds hoping that market will continue to rise high, most of the greed think that way I guess, while those who knows how to play well will act accordingly, sell partially and observe what tomorrows will bring to his assets before engaging back again.

Exit strategy is very important, you have to choose your exit point and make sure to follow as it was planned correctly.

I will sell bitcoin when it reaches the highest price and I believe it will go to that price.

No, I don't buy through Coinbase. Fortunately, I have a friend who always helps me to buy bitcoin and then I can send it to the exchange so I can trade for any pairing.

Coinbase will be able to support people for withdrawing? Hm, I think they can but the problem, how good their server to anticipate the increasing of the traffic on their website? Because if millions of people withdrawing all of their money, then the traffic will increase higher and they need a strong server to handle that.

I don't get it your question, so I don't answer it ;D

We could use the other exchange rather than use Coinbase only, and I am sure that we can found a reputable exchange with easy. I have local exchange and sellers that could help me to withdraw bitcoin.

Any exit strategy will not be good stratergy but it does not mean that "hold" is good stratergy.
Treat Bitcoin the same way as you treat fiat currently. You earn fiat, spend fiat and invest using fiat so do same with Bitcoins.