What's your plan?


Today's dip is a good example of why it's important to have a plan in crypto.

the markets can remain irrational longer than you can remain solvent liquid.

When the candles are green and everybody is shouting up-only, it's easy to feel good - nearly invincible, as if nothing can stop this run.

But then, on days like today, we feel our price mortality. Nearly everything (besides DOGE and stablecoins) is in the red; and while for the crypto veterans 20% drops are nothing new, they do create some kind of emotion. How veterans react however is different than those from "newbies".

Now, I wouldn't call myself a veteran. I'm "only" 1 cycle in - some are in since '13/'14. However, these past 3-4 years gave me some very hard though valuable lessons.

Most importantly:

Have a plan

A plan can be simple. For example: how much money do I need for living expenses? How many months do I need to save in advance? How high are my taxes? How much buffer do I need for times like these (i.e. buying the dip)?

Once these questions are answered and a plan is in place (i.e. you might need 50k USD liquid (stable coin/fiat) and you have 100k in volatile crypto).

It might suck to cash out, and you don't have to do it all at once, i.e. dollar-cost averaging, but it's a horrible feeling when the prices keep falling and falling and you're forced to sell your crypto with a huge discount. Besides that, you'll also reduce the stress you experience quite a bit.

So, what's your plan?

PS: Not financial advice.

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