So it would appear we are in a bull-market, maybe. I don't know. Possibly we are, possibly we are not.
But with BTC almost hitting an ALT and alts looking lively it's time to start thinking about taking some profits, hypothetically or in reality, or both, or neither.
TLDR My not financial advice for cashing out crypto in a bull-market...
My not financial advice to anyone with crypto that is worth more than they originally bought it for is to either cash some of it at some point or not.
If you do either of these options then one of them should result in you being IN profit. Unless you're transacting on ETH in which case doing anything will probably mean you end up losing most of your crypto to the transaction fees.
Entirely hypothetical more specific not financial advice
Focusing on the cash out route, rather than the hodl route, if you want to make MORE profit then you need to think about how much crypto to cash out into stables and at what prices...
For me personally dollar cost averaging out into stables, and in increasing amounts as prices increases might work as a strategy.
This might work for me as I'm maybe lucky enough to be pretty flush without the crypto and to have got in early enough that even cashing everything out now would mean I've more than 10* my original Vest anyway.
The downside of selling too early is of course the opportunity cost of what you'd lose by selling later, once it's sold, it's sold, after all.
I have no idea what's going to happen the the BTC/ Hive prices over the next couple of years, but cashing SOMETHING out would be nice, that's all I'm going to say as a target, I have a target which is something....
Entirely hypothetical cash-out points for Hive....
I'm a bit precious about my Hive, so I'd find it quite the psychological barrier to PD below 80K Hive, I like my 100K stack, and 80K isn't too far off being able to regain that.
Fortunately a cash-out schedule like the one below would net me $40K, which is a nice sum of money and may or not be related in some way to the cash-out target I've got....
The blue line below is the price point and the red line the amount one might want to think about cashing out... you get the idea.... cash out small amounts early on and those amounts gradually increase as the price goes up, if it goes up!
So my general approach might be to cash out...
- 500 Hive once it hits $1.00 (it's getting there!)
- 2000 Hive once it hits $2.00
- 5000 Hive once it hits $3.00
Overall the above chart would mean a hypothetical PD of around 15K Hive.
That would save some more in case the price went up even higher!
And similar for BTC...?
If I had BTC and were to cash out I might go for something like this...
It's a similar scale to Hive.. ramping up the cash outs as the value increases.
I'm not saying that I would sell at these prices, I might sell less, but I would sell something as BTC increases in price.
I mean I possibly may not have paid over $30K for any BTC, I may have bought some of it when it was down at the $3K mark (remember that, just after SF3 in Krakow!), so if these conditions were the case, then cashing out now would be either 20* or doubling, it's all still profit.
But obvs, one would rather be selling at $250K rather than $90K.
The point is to cash out SOMETHING early and then MORE SOMETHING later, then at least if MORE LATER never happens, one has something in stables to buy one's doughnuts with, which you can eat while you watch the prices go either up or down, or both.
Collateralising assets as part of the strategy...?
I am considering this. The general idea being that rather than selling BTC at a low-ish price, you use it as collateral, take out a stable coin loan, swap and save for HBDs and that 20% probably covers all the fees involved in setting that up plus the difference in repayment interest.
Then you can repay and sell the BTC if it goes proper mental, or not.
The risks are that the protocols or tech you use to collateralise/ swap etc. break down (it happened with Terra, remember), or if you get hacked. And then there's forced liquidation.
I mean I could do this now... I probably should but I dunno! Maybe just out-out is better...?
Making crypto profits conclusions....
Don't overthink it, once yer in profit, sell something at some point, or hodl, it depends whether you want dirty fiat or the crypto, which in turn depends on whether you need said dirty fiat to live off or not!
So there you go, NOW YOU KNOW WHAT TO DO TO MAKE PROFITS IN A CRYPTO-BULL MARKET!
Tips appreciated, not everyone is capable of giving such high level not financial advices after all!