Case Study: Ben’s Structured Approach to Cryptocurrency Selling
This case study explores the methodical sell strategy employed by Ben, the CEO of Collective Shift, highlighting the key steps he takes to manage his cryptocurrency investments effectively.
Ben favours simplicity, security and making sure he takes profits.
Ben’s Strategy
Strategic Planning and Goal Setting:
Ben begins with a clear vision for his investments, setting specific goals and price targets. He pre-determines the price points at which he will sell portions of his holdings, ensuring decisions are not made impulsively.
Example: Ben decides that once X cryptocurrency reaches Y price, he will sell Z% of his holdings. This approach helps him capitalise on market highs and secures profits.
Careful Selection of Exchange Platforms:
Ben emphasises the importance of choosing a reliable and reputable exchange for transactions. He considers factors such as security, ease of use, and transaction fees to make an informed decision.
Example: For Bitcoin transactions, Ben prefers Kraken, while for altcoins, he often turns to Swyftx and CoinSpot, known for their reliability and user-friendly interfaces.
Effective Hardware Wallet Management:
Understanding the significance of security, Ben opts to store his assets in a hardware wallet. He plans the transfer of assets from his Ledger to his chosen exchange meticulously when he’s ready to sell.
Example: Ben utilises his Ledger wallet for secure storage and transfers assets to his nominated exchange when executing a sale.
Incorporating Tax Considerations:
Recognising the tax implications of cryptocurrency trading, Ben plans for potential tax liabilities. He allocates a portion of his profits to cover any tax obligations, staying abreast of the evolving tax landscape in crypto.
Example: Ben consults with Crypto Tax Australia (CTA) to gain a clear understanding of how his crypto transactions will impact his tax situation.
Execution and Ongoing Review:
Ben follows through with his sell orders as per his strategy. He remains adaptable, regularly reviewing and adjusting his approach in response to market dynamics and his evolving financial objectives.
Example: Ben periodically reassesses his strategy, ensuring it aligns with current market conditions and his financial goals, making adjustments as necessary.