Exit strategy

[Rufiefairy]

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?

[1715589804]

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[1715589804]

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[Obiwankenodium]

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.

[CryptopreneurBrainboss]

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.

[Jating]

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.

[Lucius]

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.

[Upgrade00]

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?

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.

[zhekinsp]

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 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.

[manishanand]

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.

[Velkro]

It is unlikely that everyone decides to sell a the same time frame, but as an investor, you should have a strategy,

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

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.

[jademaxsuy]

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.

[Kopyleft]

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

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.

[gentlemand]

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.

[jossiel]

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

What is your exit strategy?

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.

Did most of you buy through coinbase and will just transfer back into there?

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

Would they be able to support millions of people withdrawing hundreds of thousands of dollars?

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.

[Zocadas]

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.

[coingecko]

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.

[hugeblack]

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.

[artdisrupt]

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.

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.

[NeuroticFish]

Crypto seems fairly liquid but again if it shoots to the moon, how liquid will it really be?

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.

[harizen]

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?

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.

[squatter]

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?

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!