The market is up, Trump is elected, you’re looking at Lamborghini, but there’s one thing you’re not doing: you’re not selling. I first wrote about this topic on X and it went viral, getting over a million views! It looks like we need to delve deeper into this issue, so let's get started.
In cryptocurrency, the biggest mistake you can make is not buying meme coins or similar high-risk tokens. The biggest mistake is never selling and exiting your position! That's how you get back to zero.
Just like this guy. Let's explore this further.
To win in this game you must take five actions. Let's start with the most important.
1. Develop an exit plan
The man didn't sell, and his $4 million paper profit became $77,000. I'm here to teach you how to avoid this newbie mistake.
Summary: As long as it’s a life-changing moment, sell it! Detailed explanation begins in the next paragraph.
When markets rise rapidly, as it will again, greed takes over! You made $4 million in a few weeks, so there’s nothing wrong with waiting a few weeks to sell, right?
wrong!
Don't let greed turn into regret. If you have made five to six zero profits. Sold.
Next is when to sell.
The exit window could be late 2024 or early 2025. When BTC hits new highs, the FOMO and euphoria will begin. The top will come at or just after the US election, most likely this December.
Trump is 100% pro-cryptocurrency, so this narrative fits perfectly. Why?
The dumb money (you) will buy FOMO, and the smart money (VCs) will sell. There is no better time to sell than when the market is ecstatic!
Having an exit plan helps, it keeps you grounded. Otherwise, fantasy will take over and you will forget to sell.
Study the Cryptocurrency Pyramid. If you are at the bottom, your odds are low and most of the information you receive is false. Learn how the game is played and exit the cryptocurrency casino with your pockets filled with cash.
What comes next is important!
2. Prepare for the coming bear market by sitting on huge profits
News flash: A bear market is coming!
Trust me, it will come. Very violent. Probably in 2025. There isn't much time left to sell. If I'm being generous, we still have 6 to 12 months. Maximize this when the market starts rising again.
I expect another massive rally and then the market will turn around. You have one last chance to sell. Don't miss it. Some believe the top will come later in 2025. However, price action so far points to a faster cycle, with BTC hitting new highs in March 2024. This was before the April halving!
Image content translation:
- Hey friend, I really enjoyed your post! I see you said the market top will come soon. Why do you think so? Just curious because a lot of people are talking about late 2025.
- Thanks! Most people have no concept of market cycles, they just reflect their biases onto the charts. The current cycle is faster, with BTC reaching new all-time highs ahead of the halving. So we may also be peaking earlier. Of course, I could be wrong, but don't trust anyone but price action. We can reassess at the end of 2024. ;)
If this trend continues, the market may also peak sooner. Regardless, follow the price action and nothing else. Don’t trust influencers to have your best interests at heart, go back to the cryptocurrency pyramid above and study it to understand why.
When you exit this market, you do so by selling BTC, gold, or USD. If you plan to hold Altcoin, you must be new to it. Next is why.
3. Plan to liquidate all Altcoin on the next rally
Sell them all and wait for the market to correct. Altcoin can fall by 90% to 99% in a bear market. Buy it back a year or two later at a discount (more on this later). Do not worry!
Everyone loves Solana right now, but look what the last bear market did to its price! 99% of Altcoin will be like this when the next bear market hits. Don't expect things to be different. Instead, plan for this scenario.
Use those profits wisely and buy into panic assets - the panic will come! Never buy back when the market is rising further.
4. You’ve quit, hang on! Don't gamble
A quick way to lose money by re-entering the market is to buy during a random uptick. Instead, you might buy the last leg up before the crash.
I recommend waiting a year or two after the market peaks before considering re-entering. Waiting for a year is the minimum! This means you don’t touch or even think about pressing the buy button during this time. Just forget about cryptocurrencies during this time.
The only exceptions are new projects that are innovative in some way. But even here, the stakes are high. However, early entry can be decisive. In this case, whatever you decide, never go all-in on one Altcoin. Never. The only exception is Bitcoin.
After you've sold and are sitting on a nice profit, it's time to plan your re-entry into the market.
5. Rather than re-buying at highs, plan to start buying at lows
Take a look at your profits and create a distribution plan for a bear market. How much BTC to buy? Altcoin? New high-risk coin?
Next are the rules.
A good general rule is to only buy when an Altcoin is down 90% or more! In the Solana chart above, the price is down 97%! In the case of Bitcoin, only buy when it drops more than 60% from its all-time high. For ETH it is 70% or more.
Note that ETFs may change the price dynamics of BTC and ETH in the upcoming bear market. Update your exit plan based on new information, especially towards the end of 2024. By then we will have a clearer idea whether my assumptions above are accurate. Anyway, I'll update you later this year, just follow this newsletter.
If you don't take the market seriously, the market won't take you seriously.
It will take all your profits and run away with them, but you will do better next time.
If you stick with it.
- Rule 1: Never lose money.
- Rule 2: Never forget the first rule.
I've seen enough cycles to know what happens next. Most people don't know. Do you know why? Because we are still in the early stages of this emerging market! Cryptocurrency just got its first ETF and presidents are talking about it now. It took a long time to get here.
But this is just the beginning!
There's more to come and you can make a huge fortune in this field, if you take it seriously!
It's all fun and games until you see five or six zeros in your wallet. Those that can have a life-changing impact.
Don't let it slip away.
That will be your signal to shift from wealth creation to wealth preservation.
Most people fail at this transition and pay a heavy price for it.
This means you want to secure your newfound wealth. Don't bet it on meme coins. Only extreme speculators can make millions out of thin air. But again, only extreme speculators can lose it.
So what do you do?
You have to grow, you have to mature.
This usually means you want to focus on Bitcoin. Most people will naturally end up choosing Bitcoin because of what it represents. It's the ultimate tool to protect your wealth!
But you have to own it first. So you have to be an extreme speculator, but you have to learn when to stop!
This is based on my story, yours may be different, but the lesson is always the same.
Regardless, the market will humble us all.
But you have the ultimate power:
You decide when to enter and exit the market!
