4 Best Exit Strategies for Crypto Assets
Crypto investments are the trickiest investments on the market. Due to their volatility, their prices can either hike up to an enormous range or collapse down to an extremely low price. Many investors who have invested in cryptocurrencies are introduced to a dilemma – when and how do you sell your crypto assets?
There are many investors who have invested in cryptocurrency using the right investing strategies and earned millions and billions for themselves in returns. If you too want to be a part of these investors and have a chance at winning amazing returns, you can click on this go url to do so.
However, the real problem arises when these same investors need to cash out their money using a reliable exit strategy. Add to that the uncertainty of having many scamming websites out there that work continuously to scam investors of their hard earned money and you can understand why reliable exit strategies are necessary. While you can check which sites are scams and which are not if you visit this site, there is still the question of what exit strategy you should adopt for taking out your crypto assets.
Many investors aren’t aware of reliable exit strategies for crypto assets and that is exactly why we are here to help them out. In this article, we will be listing several reliable and excellent exit strategies that you can use to take out your cryptocurrency assets and convert them into viable currency. Read this article till the end so that you don’t miss out on crucial details.
1. Limit Orders
The cryptocurrency market is extremely volatile and it can go through dramatic changes in a short amount of time. It is not uncommon to see the market sliding down in one moment into a slump and seeing it rise up in the next. While day traders have become adept at understanding these market movements to a fair extent, the problem arises when the market value changes at times where they can’t do anything about their assets – for example, while sleeping.
That is why many investors use limit orders with their cryptocurrency trading transactions. A limit order is essentially a rate limit where your cryptocurrencies will be automatically sold. To put this into a better example, let us assume you purchase $10 worth of bitcoin when it was going for $10,000. Now you wish to sell that bitcoin whenever its price reaches $20,000, thus giving you a 100% return profit of $10 with $20 in total.
While you know that bitcoin’s prices are going to hike sometime soon, you have no idea when that will happen nor do you have the courtesy of time to wait around and find out. The simplest way, then, will be to put a limit order of $20 and put your bitcoin up on sale. When bitcoin reaches your desired value, your trade will automatically go online and you will get the exact price you wanted – even if you weren’t around to complete the transaction.
2. Step by step
Another effective method is the step-by-step method, which is not only applicable for cryptocurrency but also for any stock market investment in general. The step-by-step method basically implies that you sell certain amounts of your crypto at particular price points until you reach the maximum return value that you can get on your crypto investment.
Let’s say that you invested $10,000 in crypto. According to the step-by-step method, your next step should be to sell 10% off when your investments reach a price point of $12-15k. When the value reaches $20k, you should sell 20%. When it reaches $30k, another 20% and so on. However, you should always hold onto 10% of your investment when you are investing in cryptocurrency.
Because of the volatility of the market, it can hike in value anytime and that 10% of your original investment has the chance of being worth more than the 100% of your amount you invested in. While these events are extremely rare, if they do happen, make sure you sell the last 10% off as well.
3. Early investment return
One of the oldest investment strategies, the early investment return is one of the few strategies that is extremely failproof and guarantees the return of at least the amount that you invested in your crypto investment. The early investment return plan is an extremely effective plan and is actually considerably easy to use.
Consider that you make an investment of about $500 in bitcoin. In the next few days, bitcoin’s value rises steadily but you don’t even bother touching your investment amount. When your investment reaches a total value of $1000, giving you a $500 profit, that is when you take out the $500 of your profit and keep the rest of your crypto assets as it is for generating future profit.
This is one of the easiest exit strategies but also the one that requires the most patience and emotion control. However, it guarantees that you get at least the entire value of your investment back and the rest of it would be pure profit.
As the saying goes, don’t put all your cookies into one jar. While this saying is extremely popular in the stock market, it is equally applicable in the cryptocurrency market as well. An exit strategy from one specific cryptocurrency doesn’t necessarily mean that you quit investing in the cryptocurrency forever.
You can still take out your crypto investments from one cryptocurrency and use it to invest in another cryptocurrency. Each cryptocurrency has its own unique market changes. If you sell off your bitcoin while it was at a high price, you can consider immediately using that capital to invest in another cryptocurrency such as Ripple or Cardano which may be going down.
These re-investment decisions not only diversify your portfolio but also provide you with several fail safe investment options that you can use if one of your investments go wrong. Re-investment is one of the most effective exit strategies out there because it is not really an exit strategy but rather an exit and re-use one.
There are several unique exit strategies you can use for selling your crypto assets. We hope this article was insightful for you and if it was, please consider following our article for regular updates as it will help us out immensely.