The Importance of Planning
To offset uncertainty & change
To help in the coordination
To increase organisational effectiveness
Before you can even buy Bitcoin, it’s always essential to understand why you’re buying.
Creating a plan is step one and often an overlooked step.
- Do you want to HODL or DCA?
- Just dip your toes in?
Time To Make a Decision
What does an exit plan look like?
If you have never created an exit plan, some things to consider include the following:
- Your original plan: What was your original goal or plan when you first entered the space or bought those assets?
- Have you made life-changing amounts of money: This is all up to your personal opinion/circumstance. We define this as any amount of money we would lose sleep over not taking off the table and would significantly alter an aspect of our life.
- Tax implications: When is your tax due, what does your jurisdiction say about capital gains tax (CGT), and can you get a discount on CGT for holding? Please see your tax professional!
- Judging your timeframe: Often, an exit plan doesn’t mean exiting 100% of your position—having a stable base is critical for me. It can depend on your timeframe and whether you believe in holding an asset for x years; this can influence how much of a % you exit.
- Specific targets: It might be a specific time you want to sell or a certain price level, such as a plan to sell x% of an asset when it reaches x price. You can also prepare a plan for downward price action and what points you would sell or what you would do if the price reaches certain lows.
Nick, a senior researcher, created 2 member posts on exit planning.
Feel free to use them.