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Most people think about investing and staying long-term in the crypto world. Today for a change I wanted to give it a thought as to what would be the exit strategy. We cannot stick to something forever in this ever-changing world, right? A few years back mining was one of the biggest things in the crypto world but today that isn't a thing, at least for the top coins. So in this ever-changing world, in order to retain our financial situation stable, it is also wise to plan an exit strategy.
SEC is not going easy with crypto
This is the thought of many people from the US. It is not good news for people from other countries as well. If SEC keeps targeting one crypto after the other or one exchange after the other, there will be tough times in this crypto world. The situation is similar in many countries. Even though many countries say that they are crypto-friendly, they impose a high tax on people who are using cryptocurrency or dealing with cryptocurrencies.
Even though the crypto situation is far better in countries like UK and Singapore, the expectation is that many countries are US dependent and the regulatory concerns in the US would also affect the other countries. Many people might start pulling their assets out of the crypto world if this situation keeps going. I'm not going to say Crypto would see a slow death which is impossible but I'm saying that it is definitely a possibility that things might slow down a bit if this keeps continuing in the US.
Planning an exit strategy
Any investment expert would say that DCA is the best way to go to handle both good and bad markets. If we are able to reach our invested value or close to our invested value during a bear market with the help of DCA, we are fully equipped for the next bull run and that can be the right time to exit. For people who don't care about their crypto earnings, this may not be a big deal but for people who are having this as a primary source of income might have to find the right moment and book their profits.
In recent months I have also been thinking about booking some profits and taking the crypto out. I have not taken out any of my earnings so far. It is good to probably take some funds outside when it is the right time. Of course, I wouldn't consider taking it out right now and wait for the bull run to happen once again so that I can plan my exit strategy very well.
It doesn't mean that I would completely exit the crypto world but I would be willing to book some profit and use it for some of my real-life expenses or do some real-world investments that would stay strong even if the crypto world is not showing good signs.
I'm not trying to be negative here but just trying to prepare myself for both good and bad times as it is not wise to keep all the eggs in the same basket even though the basket is big enough and it can accommodate more eggs.
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