π Disclaimer: I am not a financial adviser and contents in this article should not be taken as financial advise. Rather this is strictly for educational and informational purposes. It's also my entry for this weeks social media challenge
My Cash Out Strategy and Rotation
I'm not a big fan of timing the market. So i devised a logic that is pretty simple. I plan to have a monthly sequence of cash-outs which will provide a continuous source of income without having the need to give up all of my assets and tokens, at the same time allow me to remain competitive in the game. Spreading cashouts between months also gives enough time for one token to recover, increase in value before being cashed out again.
How To Do It?
Each month i will be exchanging one and only token of choice. as mentioned earlier this prevents affecting all of my in game tokens or hive assets and in doing so i dont have to deal with timing the market, and care less at selling at lows
Month 1- Splintershards
In my persepective, the first one that should be cashed out is the splinter shards. This is a governance token, which goes up and down in value. It's first on my list simply because the daily earnings depend largely on airdrop points, which means that your daily sps earnings would likely remain the same even if all of your shards gets cashed out (except for APR interest as this relies on the amount of sps staked) remember that unstaking takes over 4 weeks where 25% gets unstaked weekly) so unstake your splintershards beginning of the month if you want to cash out by end of month.
Month 2 - Card Sales
Selling splinterland cards is second on the rotation of my cash out strategy. There are some cards which i don't really get to use and i actually consider as non performing assets. While selling cards might decrease my collector power. Remember that in rank leagues, rented out cards will aso add up to your collection score
Month 3 - DEC
In my case, Dark Energy Crystals serves as a high utility token, it keeps my airdrop points up and where all rent power comes from. Once I get to month 3, i do not plan to sell all of it but just parts of it as i believe this token has the highest potential to increase in value
Month 4 - Hive and Hive Dollars
This is a token i get from blogging about splinterlands. Simply put, the more i use and share this platform the more i earn. This one, while it's not directly a splinterlands in-game token, acts as a reliever for my actual splinter land assets. I decided to include this in my rotation to give my other splinterlands tokens more months to recover.
Month 5 - Splintertokens
Similar to above, this is a token i earn from blogging about the splinterlands and will also act as a spacer before i go back to selling in game tokens. Selling this would affect your airdrop points. but again, at this point i've already had 4 months in between which would have given enough time for my SPS to have recuperated and hopefully increased in value.
Month 6 - and moving forward
From this point on, you can go back to month 1, rinse and repeat. Or if you have other crypto coins, tokens or NFTs which you could tap into first that would be ideal before going back to selling SPS. The idea behind this strategy is to have an additional source of monthly income, but if history is to be learned from, HODLing still remains the best strategy. However knowing when to sell and having an exit strategy is one thing almost everyone has to consider.
Thanks for reading, if you have any questions let me know in the comments below. I'm all good whether you agree or disagree just feel free to let me know your thoughts. If you think you have a better strategy please state it as i welcome any suggestions.
Bottomline is you have to play this game bec at the moment it is still early and will give you plenty of time to catchup and increase your resources. Sign up using my link below:https://splinterlands.com?ref=beerbod