Bitcoin Forum

Usually, first-time crypto investors focus on entering the crypto market. But it is important for beginners to know how to exit the crypto market to take the maximum profit or save money.
Common strategies that beginners can use without specific knowledge are:

• A price target
  Dividing coins
  Dollar-cost average
  Exit by return
  Exit by cycle
  

There is more detailed info about exit strategies https://www.linkedin.com/pulse/crypto-exit-strategies-evbblock/
Do you know other strategies?

We don't literally have to exit the whole market, you've just got to exit at the right time and price if you're wanting to take some profits.

The most common strategy is by using stable coins so your profit will be there and you can reinstate to the crypto that you've got originally as you get back those cheaply.

I think that such methods are common and known to the majority of crypto investors... and in my opinion, the crypto market is a bit different compared to other investment markets and this market is more difficult for investors to guess, so often crypto investors just hold their tokens in the long term

I respect that you are trying to get people to visit the link you put or follow you, but you need to write some words to make your post meaningful, at least an explanation
Dividing coins
Dollar-cost average
Exit by return
Exit by cycle

In general, in investing, in a beginner and very simple way, everyone prefers entry points rather than exit because it means making a good profit. As for the exit strategy, it is subject to the profit tax, but if we ignore that, then we can talk about the strategies above.

For the first time I know that the Dollar-cost average strategy can be used as a buying and selling strategy.

Not everyone knows that and there are so many newbies in the scene so maybe what OP written here might help but I doubt the intention because I don't trust people posting some links here but I guess this one should is also good to see for those people to build their own strategy which they think suitable for them. I don't be surprise if majority don't follow this because at the end of the day we all have different strategy on how we do our trades.

(a) Entry and (b) Exit strategies, Everyone was entry, what price they want to get inside. But majority lacks the exit point, and maybe they really don't have as they keep on trading and when the time comes that they wanted to get out, all profits is no longer there. So for every beginner traders, it is very important that you follow this to the tee, otherwise it might be devastating at the end. As for me, I have to learn it the hard way. Nevertheless, it teaches me one very important lessons in crypto trading/investing.

I do not know what strategies anyone follows for me I generally give it a value that is it for me, below that I cannot afford to loose and therefore if I do loose below that, I try and wait for the time that it reaches that value again and then encash. This is something that might make a difference of 10-20$ on just 100$ honestly it might not be too important for most people but I do think it's essential to keep in mind when you don't have a lot of money.

But if you do have enough for investment how about you pour it in BTC then trade it for Altcoins which they are making +10% profits and then keep the amount back in BTC for long term investment.

For a holder I don't think these terms applies as well, since I know people here have been holding way before the first ATH in 2017, for them it's just hoarding and waiting which helps make the market more stable and more articulate for traders! At the end everything balances out each other.

Actually having an exit strategy is more important than the entry. A bull cycle can easily be identified and people can enter the market but when you are talking about taking profits then it's a bit harder to determine the perfect time. Because if you do not exist at in right time then you have to leave big profits from the hands.

Actually, I try to wait for the market trend to turn from bullish to bearish. It can be identified by investigating certain elements like people's sentiments, whale's behavior, etc. Like when people's sentiment becomes too positive and they became confident about more upward momentum then you should be ready for starting off a bear market. In these points, I would like to cash out most of my funds from the markets.

You're taking everything too literally as the topic is just badly titled. The "methods" can be used to exit positions in general, regardless if it's bitcoin/crypto/stocks/etc. A "crypto exit" doesn't necessarily mean you literally cash out to your local boomer bank.

To avoid being confused I think this kind of strategy works. The strategy that you focus on price. You make a price that and so when it gets there you are freely going to exit, surely with satisfying gain. Buying a coin and pegging the exit at a particular price is going to help keep you safe especially when your profit taking is activated. This is the most surest way to accommodate profit.

Op is right, I think, that exit isn't discussed enough. Many hold long-term without a particular plan on what to do with most wealth they accumulated. This isn't good because what's the point of having wealth when you're not using it for anything (and not letting anyone else make use of it)? There are also those who are holding until there comes a time when you don't need to sell for fiat anymore and can exchange BTC directly for goods and services. It's partially already possible, but overall still on a very limited level. But what if we don't get there in 10 years? How about 20 years? Does it make sense to hodl for that long if you already have enough in cryptos to bring meaningful change to your life? So having limitations, targets, and perhaps a habit of selling some BTC regularly and using the money on something is a good idea.

Those are all fine strategies, but rether thinking of crypto as an investment (and subsuquently with an exit strategy), we might want to think of it of a long term support of the tech and the ideas and concepts behind it. I would like to think that there are still a big part of people who really believe in the project.

I believe the most effective strategy for exiting the market is to set a target price.  While I don't see Dollar-cost averaging as an exit strategy, it is a strategy to lessen the average price of the token while accumulating a crashing token.  Another kind of exit strategy is a stop-loss strategy where we sell our holding at a loss while the market is crashing to avoid further loss of investment.

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Oh btw, developers also have a crypto exit strategy called rug-pull which is also called exit scam ;D ;D

There is in fact another strategy which is to never exit the market in the traditional way, unlike stocks which you have to at some point sell since you cannot buy anything directly with them you can in fact buy things with bitcoin, this means that you are not directly selling your bitcoin but instead using it to buy the products you need, and while this is an indirect way to exit a small part of your position in bitcoin, at the same time is not a traditional one as you are not exchanging bitcoin for fiat directly.

As there's always been it's best entry, one should also know when is to make it's best exit. I think its certainly the right timing to make a good exit, and its more important that you have maximize your gains already than your losses. Otherwise, you will have to exit the crypto market because you aren't making profits anymore and are drown into losses. But by using stable coins or do the DCA, you will have less worries to make an exit as you could get back to it when you're ready.

Yeah, I've taken it literally because there's this someone that I've talked to a few days ago that have said, he's about to exit for real and that's what he meant and that's why the meaning of it remained on my mind.

Btw, thanks!

It's like setting a price limit until its hit, you'll automatically out and can go out with the profits.

Sometimes, investors forget to set their own prices on when they should start selling and that makes them greedy and are not able to sell when it's come.

Some people do mind off different way on how they would be treating up a
profit whether on a USD form or in a Coin form in terms of quantity.

Exit strategy is a must or setting up some selling points or target specially if you are going for short term then you should really be setting out these points.
If you do go for long term then this thing is irrelevant.

What matter most on here is on how we do make out some profits.No matter what kind of style or methods you would be using.

Basic exit strategy is selling on a peak rather than a valley. Reducing the number of fees, taxes and middlemen involved in the exit. Having a safe and inflation protected asset class to deposit funds in afterward.

An example of this could be selling a crypto exchange trading account on ebay, rather than selling assets and withdrawing funds to avoid fees and taxes. Or offering to trade an account for gold and precious metals. They might have to sell for 10% less than what their crypto holdings are worth. But a 10% loss would still be better than what they would end up paying in fees and taxes which works out to a gain.

While some are selling and exiting the market. There are others who are HODLing until the next rewards halving who might be willing to acquire holdings at 10% lower of market value. That could be a win/win scenario for both buyer and seller which is a good business practice to pursue imo.

Yeah, but I think long term holders are like waiting for at least 20 years before they can get out.

Personally I have stocks that I hold now for more than 20 years and I'm still holding it up to this day. The value though didn't go up and maybe that's one reason why I'm holding it. But as for bitcoin, well the last all time high is $19k at 2017 and then almost $70k in 2021. So that alone is a huge profits already if let's say you hold it for the last 5-6 years. So maybe some of those holders exited half of their stash and then continue to accumulate again this bear market.

I am pretty sure there are a large vast of people out there who have no exit strategy because they basically blow their entire accounts. Same goes with stocks.

Most people make deposits from fiat into crypto and stock exchanges and usually never actually withdraw any profits, some might withdraw their remaining balance but there are some that never withdraw anything because there is nothing to withdraw.

Usually it’s due to leverage trading or if you are trading stocks then it’s due to options trading.

If in doubt then the best way to take profit is to get it those to a stable coin, any choice that you think is reliable to keep there for a while while you're still thinking on which form you think is the best to keep them.

But what most I know of is that everyone who's long into the market will convert those profits into a more reliable coin like bitcoin or ethereum or even BNB.

You can fix profits in stablecoins, but in the end I will still use these stablecoins to buy bitcoin. Every time after bitcoin reaches new ATH it falls down and this period is good for buying bitcoin. When I buy bitcoin, I am confident in my investment and don't worry about what will happen next, until bitcoin starts to rise again and reach levels where I will be with a good profit.

Just avoid converting those to UST  ;D.


Others just recycle, they really don't exit the trades but rather wait for the market cycle to reset.  That is why we always hear the word, wash, rinse and repeat. That let me think, why do we need to exit a profitable trade when we can just wait and do the steps again in order to gain another batch of profits.

But to my view I won't blame those who will exit even a winning market as you put it because for them it may be a target price for them to exit while for the public or another trader it may be an impatient decision but I understand that , for the best way to be safe in trading is to put a target point for your trade and not to be greedy. Price can do a reverse anytime. Take with the example of bitcoin two days ago was down to $27k but recovered to $32k few days ago also. Is better staying in profit than losses because profit no matter how small it is gives confidence and courage.

Who is your source, let's start there, it is really the objective of post to help or search for traffic, it is essential for anyone who starts in crypto (any area) to know who tells you what, friend there are people who never in their life but It is that they have not even remotely handled a budget or even handle basic concepts such as volatility or what is Roi.

A reference like the one you have placed only seeks to lead to signup.  :)

 

If the goal is to just "make money" off of crypto you probably will end up losing in the end.  Either price wise or opportunity cost.  One way or another greed is brutal in crypto.  Fine by trading in and out, but I don't think you actually need an exit strategy per se.

I don't have an exit strategy and I don't feel that I need one. For me this is a very long game, meaning that I won't be selling my coins for another 10 years.
My plan is to hold as long as I can until I see 2 possible outcomes.
1. Bitcoin fails. Its code gets broken somehow by a supercomputer, a new virus manages to interfere with the network, I don't want to guess but there is a very small possibility that bitcoin will fail and start disappearing. A break in the 10 year trend line would also be concerning, like if somehow Bitcoin was to go below 10k USD this year, I'd probably consider my money lost and move on.
2. It becomes a worldwide store of value that countries start to hold along fiat and gold. It becomes worth at 300-500k USD a coin and I get to buy a house with just 1 BTC. In such case I'll probably start exchanging it to goods that will make my life better. Again, i don't need a strategy for that.

Most probably a promotional link, well the main topic here is about going out in the market so let’s just focus on that. I personally always have the target price and the cut loss price which is my basic strategy every time I invested in the market, I don’t know any strategy aside from this though I understand the cycle but I guess it will always depend on your own strategy regardless of the timeline in the market.

I guess all traders need not only best entry but also best exit. And as a trader, we can only make profits if our desired target price is achieved and sell our coins for huge profits. Otherwise, we will only need to make an exit because we are already losing. That's how stop loss is made. The rest of the strategies mentioned by OP are not really that significant. DCA is what i mostly used when i'm still in the market creating future profits, and i don't see it useful when you think of exiting the crypto market.

We are engaging on other coins but we do still end up on accumulating bitcoin or trying out to make more stablecoins to acquire more coins which are mostly sitting on top ranking in the market.

Exit while you still can because opportunity doesnt really come often thats why being wise and smart on making decisions is really that crucial specially on exiting the market.

You cant really just sit down and let those opportunities or chances slip away if you could really take advantage of it.

I agree with you- an exit strategy must be also considered a contingency plan where you would determine if it is the right time for the person to pull-out their investments in order to prevent further loss or to maximize profit.

This is one of those strategies where people took for granted. Despite cryptocurrencies being very volatile, they fail to create an exit strategy/contingency plan in case the price drops/increases. While a price increase is something that everybody wants, a price drop should be controlled as well to determine what % of your profits you are willing to lose in the process.

What is the point of buying when you don't know how and when to sell. If it's an Altcoin, I will exit a 100% profit + Capital as soon as I make some X of my investment, many of them are pump and dump coins with little value which after the first pump always find it difficult to go back again. They are only good for making cool quick cash, not good for none of the strategies you have mentioned except for 100% exit.
I may employ your strategy on bitcoin as there is always an assurance in long and short term that bitcoin always make new high compared to Altcoins, you don't have to worry much about it performance, that's why most prefer to continue to hold instead selling bit by bit.

I don't know if it can be considered strategy but not being greedy on price targets should also be learned by beginners. Some crypto investors, even experts have difficulty to sell at their price target when that particular crypto is going parabolic, when that coin pumped 100%, they would not sell thinking that it could go 100% more. People should learn to not regret at selling on those pumps because crypto market is very volatile.

Yeah, that's one purpose if you're for the long term. Eventually, you have to spend those accumulated stable coins for buying bitcoin at a lower price which is the best for holding.

Definitely!  ;D

I doubt it that someone is still going to trust converting into those. The volume that it's getting right now are majority from traders.

It's the preparation that mostly do if ever the markets start to show some bearish sign again. There's a point of exiting if the bear market you probably are seeing will happen and going to stay for so long.

But yes, even the market goes on bear, there's ample opportunities that we can see from it.

Everyone will learn that taking profits and leaving it for a stable coin that they're trusting does matter. Or even by just plainly taking profits and going away and then will be back some other months is also what they have to realize.

Once we go on bull again, everyone will take their profits and won't let it pass if they've missed taking those before.

Or they have an exit strategy where they literally exited out with a profit but then they came back and blow out everything. I know this happens a lot of times when playing a gambling but I am sure that the same thing can also happen when doing crypto trades or even investing. Whether they will use stocks, crypto or anything else but if they have that same mindset which is being greedy then an exit strategy cant still help them because they will always comeback on the game in the hopes of earning more profits.

@OP they will still need to have a specific knowledge because how can they possibly know if how low or high the price of the coin can go? And how will they know if which coins are better for them?

Exactly my thought. A one sentence keywords explanation of the above exit strategies maybe in his own words would have added cool spice to the post before adding links.
Personally, I am that user that is always reluctant of visiting links because it takes me away from the forum, which is what I don't like. Again, I don't visit likes if someone indirectly or directly asked me to. I only visit links when the post I'm reading interests me and I feel like going for deeper knowledge or research.

You would be surprised on how many people don't have any strategy when to sell. I don't have an exit strategy but I have set up selling limits on most of my altcoins. I always try to cash in a fraction whenever the price goes higher and higher. Taking profit is always a good idea!

What you are doing in my opinion is correct and everyone needs to see an opportunity to make a profit,
we have to take advantage of the opportunities that exist and it's a shame if we just pass them by,
but maybe you need to study and at least find a strategy that suits you

I guess there is no harm when you are checking the Linkedin link! Don't get me wrong, I don't click any link just like that... it's like some places are safe, and you can't make a mistake by clicking them!

I checked the link, and there's nothing more to be seen... What OP shared is pretty much that what we can see in that Linkedin post! Some general description of some strategies that can be useful, but to be useful you need to know many other things like which coins to choose, how to learn to recognize cycles and upcoming changes, bankroll management... simply said there are too many factors to consider!

Respect for people who said they don't need any exit strategies! I guess we are holding to some coins we believe in, and their price can go up and down, and we can have fun with scalping and trying to make more coins... but in the end, we always have a stash of some specific coins and we are looking for ways to grow it, but more than that we believe in them in it's why we holding them!

You do not have to, that is the case. You could have exchanges that use directly the fiat itself, and not a stablecoin and you wouldn't need to use stablecoins for that reason. You could get in and out of crypto without withdrawing money to your bank account, it would be in your exchange and that would be fine, if you ever want to move money, you could move from one exchange to another like stabelcoins, but this time real ones. That should be the way how the future is, not this stablecoin version, makes no sense to have this.

I hope that with things like CBDC or whatever it is going to be called, we are going to actually have something like that.

This is the least talked about topic in cryptospace for sure. Whenever you will ask someone when to enter there are more than hundred strategies to name but whenever someone tells you when to exit there is barely a strategy to name all you are told to do is HODL but question is until when. I feel best strategy for crypto space is to wait for next bull run and all time high and let price go 50-60% above that and now start selling in different portions with some percentage in each time sort of a dollar cost exit.

because many people are holding as much as possible for the hope of high profits in the future. however, at some point, you need to discard some alts especially those showing decline in the market. it may be true to hold long term when you talk about btc. but for other alts, you need to think of when to discard them before you incur more losses. most alts have no chance of revival, they will continuously go down up until, they have no more value in the market.

Well what happens is there are some people which are legitimately not interested in ever selling their bitcoin and instead they are waiting for the day in which they can use their bitcoin freely to satisfy their needs, but most people are not interested in holding for that long, so the questions of when and how to exit are legitimate, but at the end it depends entirely on your own plans, some may hold until a certain price is reached, until a certain amount of time has passed or until they can buy what they want, and since all of those goals are heavily dependent on who you are then it makes sense there is not a standard practice when it comes to exiting the market.

Timing the market as to when to enter is the most common question ask since it is always hard to enter the market. Just like right now, even with the bearish market and with the dip on bitcoin, people are still hesitant to buy or enter the crypto market.

However when it comes to exiting the market, it is totally subjective to the investor instead mainly because they can either hold on their coins for long and exit when they have already gain profit or stay to further gain more profit or maybe even loss some on the long run. The volatility of the market is also the reason why it is hard to predict when to exit.

Also, since you've mentioned cut-loss or exiting on alt market due to decline on it's price where it might reach to nothing is a common scenario on crypto. However, in these cases there are some topics that are related to it as one of the main reason why an alt be rugged is due to potential attacks or even the project failing.

Depends on what you could really able to afford on speaking with losses but you wont be losing nothing if you wont really be selling on loss and thats the primary principle if you are an investor.
As for people who do tend to get engage with altcoins then we cant really deny that it could really bring out bigger profits or gains whenever the market tends to green once again and this is where people do commonly hold or hope thats why they do make out some alternative movement for the possible other source of income or profits excluding or aside from Bitcoin itself.
Exiting or securing your profit is always been ideal but every call would vary on every person.

I make cryptocurrencies as an alternative income and long term investment, this is what makes me never have special ambitions or sell anything to invest cryptocurrencies, I only invest from airdrops and bounties so it doesn't interfere with my finances, in fact I often sell cryptocurrencies because I want to buy or to fill my bank account.

Usually, first-time crypto investors focus on exiting back to the fiat market.  But it is important for beginners to know how to exit the central-bank-shitcoin market altogether—to take the maximum profit in BTC or save money, i.e. Bitcoin.

(Are you unaware that Bitcoin is money?  Only those who are very new to this space account their PnL in dollars or other fiat, instead of properly accounting PnL in BTC.)

According to me, no need to follow a long list of strategies.
Only Price target can work well.
The most important thing that a trader needs to keep in his mind that, he shouldn't be greedy.
After setting a price target, if he keeps on waiting for more profit, then I am sure he will end up in losses.
And as also a first time crypto-investor, it's a must to know the basics of trading.
At last just believe on yourself and choose the best coin.

When the market looks stagnant as it is now of course many want to get out and replace it with another type of investment, if we sell all assets now and the result is a profit then this is not a problem, but if we sell at a loss then the best thing is to be patient and wait, I'm sure the market will rise again soon.

are you truly asking us here about strategy? or you are just extending your site by sending Links for the 3 posts from all 4 of yours? it is obvious that the link you shared are connecting to same site.
then you should be ready when this dumps happens and this is by sparing funds always in your wallet ready to buy in this kind of season .

Taking profit is the best form of making money in crypto and best strategy to advice to people new in this industry. I think "exit" word is misleading, maybe you meant how to take profit in crypto. Of course in crypto greedy attitude shouldn't be practice because this is the common mistakes to new people here. Taking profit is not bad, as long as you make goals and set standards, everything will be okay.

In times like this, don't be in a hurry to make a decision by selling,
after all this is not the right time to sell because there is a high probability that it will make a loss,
it's true you need to be patient and keep doing the analysis

But if you decide to hold, better keep up with the updates of the coin that you are holding. Because if the development has been stagnant and no more movement, better doubt its longevity. Because more than likely, the dev team will abandon the project if they have no more updates in their project. They are just waiting for the trading to die down and silently get away from their failed project.  The survival of the project depends entirely on the team, how they will achieve their objectives, if ever they are sincere with their goals to begin with.

I agree with you the word exit is a misleading word because the truth is it is a strategy to find profit opportunities that every trader and investor already has a strategy for, because everyone who joins the crypto world, even though he is a newcomer, already knows when to buy, hold and sell with the way to it but luck is the end of it

You are right, unless a person is willing to sell their holdings and never comeback then it is misleading to say they are using an exit strategy, it would be more accurate to say they are using a taking profits strategy, now with that being said since almost every single trader is using a different entry strategy due to the almost unlimited number of combinations in which you can use the different indicators we have in the market, then it makes sense people also have very different strategies to take profits, even if the end goal of every single one of those strategies is the same.

Doesnt matter on what step or decisions that they had made or what are the impressions that they do have whether they are really just turning back and see it as a strategy but in general sense it isnt really that

considered to be one but since he do see that way then so be it.Exiting would really be talking about securing profits and wont be affecting yourself with volatility which means if you do hold something which do its
value do still moves then you havent exited on the market.

We do have our own calls and decisions thats why it would really vary into each person or trader.

The thing that makes me happy with cryptocurrencies is being able to sell all assets in a few minutes, if the market looks tough then best thing is to leave immediately or switch to stable coins, if we have enough time then invest in top coins like bitcoin, ethereum or other coins is the safer choice.

Luck will happen if we know what to do and do it so actually luck it all depends on the effort we put in,
not all newbies know when to sell and buy because it requires knowledge and skills,
profit and loss are all part of trading and investment that cannot be separated