Cryptocurrency is a new and unique space, which can make it difficult to wrap your head around. That’s why our experienced team put together this resource for you to create your personal crypto strategy.
By spending some time creating a plan, you can navigate the world of crypto more confidently and be better positioned to achieve whatever goals you have.
This resource is available as a PDF, which you can find below. The document includes 7 questions for you to answer. There are two ways to use this document:
- Download the PDF, open the file, and type in your answers.
- Print the PDF and write your answers.
For anyone not printing, you must download the PDF to your computer and use that downloaded file. Otherwise, your answers will not be saved.
Disclaimer: We are not Financial Advisors. All opinions expressed by Collective Shift and its representatives are intended for educational purposes only and should not be treated as investment or financial advice. Any information provided is general in nature and does not take into account the reader’s specific circumstances.
7-Step Crypto Strategy Template
Not a fan of PDFs? We have you covered! Keep reading for those who want to view the template on the platform. We still encourage members to download the PDF and fill it out at a time that suits them.
For fans of video, see my YouTube video summing up this resource!
Who is the template for?
- You own or want to own between $10,000 to $2M in Crypto.
- You’re ready to take crypto seriously and make money in this bull market.
- You’re sick of YouTubers & influencers giving clickbait content.
- You’ve been through 0, 1 or 2 crypto cycles already and didn’t make any or enough money.
- You don’t have a structured action plan for this bull market.
We provide tips to help you understand the most important considerations so you can execute your own strategy.
Who Am I?
I’m Ben Simpson, CEO & Founder of Collective Shift.
- 50,000+ social media followers
- TEDx crypto speaker
- Building crypto education companies since 2017
- Advised and educated over 10,000 crypto investors globally
- Focused on helping intelligent investors to take their portfolio’s to the next level
Create Your Template
We’re here to help you along your crypto journey. One of the most important things you
can be doing, in our opinion, is creating a strategy that is specific to your
circumstances and goals.
Although we cannot provide a strategy for you, as everyone’s situation is different and
we are not financial advisors, we can help you create your own through our template!
What to do?
Work your way through the below 7 questions. Where you feel you need additional
context, leverage our suggested resources listed under each question.
After answering these, you’ll have your own crypto strategy. From our experience, the
more time and effort you put into creating and thinking about your strategy, the more
likely you are to stick to it.
This is something you’re going to work on, and something we’re going to help you with
and get better at! Return to it frequently to remind yourself why you are here.
Contents
Q1: What Does Your Current Portfolio Look Like?
Q2: What Are You Trying To Achieve or ‘Get Out’ of Crypto?
Q3: What Is Your Time Horizon?
Q4: Strategic Portfolio Structure
Q5. Have You Considered Your Tax & Structure Strategy
Q6: What Is Your Buy Strategy?
Q7: What Is Your Sell Strategy?
Q1: What Does Your Current Portfolio Look Like?
The best starting point is to get an overview of your current cryptocurrency
holdings. Knowing which coins you hold, in what quantities, and where they
are stored provides an essential foundation for effective portfolio
management.
Note: ‘Location Held’ could be an exchange, a hardware wallet (e.g. Ledger) or
a browser wallet (e.g. MetaMask).
Relevant Collective Shift Resource: Crypto Portfolio Structures: Beginner, Intermediate & Advanced
Q2: What Are You Trying To Achieve or ‘Get Out’ of Crypto?
We invest to build wealth for the future and achieve our goals. But what
exactly are those goals? What is it you seek to gain in your future?
More money? Of course, but dig deeper, what is that additional wealth going to
be used for?
By clearly understanding your goals and what you hope to gain from crypto,
you can create a tangible plan to revisit regularly and remind yourself why
you’re here.
Having clear goals can help you remove emotion, enabling you to think and act
more strategically.
Relevant Collective Shift Resource: Planning Your Crypto Goals
Q3: What Is Your Time Horizon?
Your time horizon is the period—months, years, or decades—in which you want
to achieve your goal.
Knowing how quickly you intend to achieve your goals will help you determine
the appropriate amount of capital to invest and the level of risk you’re willing
to accept.
A time horizon can apply to your entire portfolio, or it can be broken down by
individual cryptocurrencies, depending on each coin’s specific objective.
Relevant Collective Shift Resource: What Is a Risk Assessment?
Q4: Strategic Portfolio Structure
Now that you understand why you’re here and the time horizon within which
you aim to achieve your goals, you can begin developing your overall strategy
and managing your risk.
Risk management is one of the most overlooked aspects when entering the
cryptocurrency space. In crypto investing, two common extremes emerge:
underestimating the risks associated with certain cryptocurrencies and
overestimating how low-risk Bitcoin is over time.
A strategic portfolio balances high-risk and low-risk assets to help you
achieve your goals within your desired timeframe. Here are three relatively
common portfolio structures:
Low-Risk Long-Term Hold Portfolio
Bitcoin is the only cryptocurrency that has stood the test of time,
demonstrating sustained growth in both price and adoption. For those with
limited time and no interest in riding the high volatility of altcoins, allocating
100% of their crypto portfolios to Bitcoin is a common approach.
Medium-Risk Portfolio
Notice that all these strategies include substantial Bitcoin holdings. This is
because Bitcoin has consistently been the best-performing asset historically
and remains the cryptocurrency most likely to offer long-term stability,
coupled with exceptional returns compared to traditional assets such as
stocks and real estate
Which portfolio structure suits your balance of goals, time and risk?
Relevant Collective Shift Resource: Understanding & Managing Risk in Crypto
Q5: Have You Considered Your Tax Structure Strategy?
In Australia, the U.S., and nearly all other jurisdictions, buying and selling cryptocurrency has tax implications. Misunderstanding these implications can lead to serious issues (e.g., large, unexpected tax bills) that could have been avoided or at least minimised. It’s usually best to understand the tax
structures involved before you start investing in cryptocurrency.
Buying and selling cryptocurrency has tax implications which will depend on the tax laws of the relevant jurisdiction in question. For example, in Australia there is currently a 50% discount on capital gains tax when a crypto asset is held for longer than 12 months before it is disposed of, however this same tax concession does not apply broadly to all jurisdictions. Misunderstanding the tax implications can lead to serious issues (e.g., large, unexpected tax bills) that could have been avoided or at least minimised.
It is also sensible to consider different tax structure options before you start investing in cryptocurrency and in particular whether there are more taxefficient structures available to you instead of simply investing under your personal name (e.g. using a company or trust structure). Implementing such
structures will come at an additional cost to set up and/or maintain but could offer distinct benefits not otherwise available to individual investors (e.g.distributing profits to beneficiaries via a trust).
We strongly recommend that you speak to a tax and/or legal professional about your individual circumstances to identify what is best for your personal situation.
Q6: What Is Your Buy Strategy?
A buy strategy is often overlooked. Without a clear plan, you could fall for FOMO or get
involved in something you otherwise wouldn’t or doesn’t align with your strategy.
A buy strategy is also about ensuring you get the most cost-effective swaps possible.
If you’re buying or swapping significant value upwards of $10,000, it may be better to use
an over-the-counter (OTC) desk to help ensure you aren’t losing lots of money to
‘slippage’, which can happen on certain exchanges.
For your consideration: Ask yourself why you’re buying a particular cryptocurrency. Does it
align with your goals from Q2 and your strategy from Q5? Which are your preferred
exchanges and how do you plan to buy in the most cost-effective way possible?
Relevant Collective Shift Resource: Where To Buy Cryptocurrencies | Identifying Where to Buy Cryptocurrencies
Q7: What Is Your Sell Strategy?
A sell strategy is critical to keep you in check, particularly during times of extreme price
volatility.
It is important to consider how your crypto is stored and how efficiently you can sell crypto-assets to meet your sell strategy in these circumstances, particularly if using cold storage, where it can take time to transfer onto an exchange to sell and be expensive to do so when the network is busy.
By having (and sticking to) a sell strategy, you lower the chance of succumbing to FOMO and selling at a price that you otherwise wouldn’t have. Consider automating your sell strategy to make it easier to follow.
For your consideration: What percentage of a certain cryptocurrency will you sell and when? How does your sell strategy compare between the short and long term? What will it take for you to sell?
Relevant Collective Shift Resource: Preparing Your Exit Plan