Get the weekly summary of crypto market analysis, news, and forecasts! This Week’s Summary The crypto market ends the week at a total market capitalization of $2,17 trillion. Bitcoin continues to trade at around $62,300. Ethereum experiences no changes and stagnates at around $2,400. XRP is down by 2%, Solana by 1%, and Dogecoin by 3%. Almost all altcoins are trading in the red, with very few exceptions. The DeFi sector decreased the total value of protocols (TVL) to around…
Bitcoin Exit Strategies: An In-depth Guide
1.7 k views
Entering a Bitcoin trade at an opportune moment can be a hassle. But exiting a trade can be far more challenging, especially if you lack a solid exit strategy. Not knowing when to exit a market can result in making premature profits or becoming an unwilling Bitcoin holder. If you’re thinking of taking some of your Bitcoin profits and reinvesting it in other sectors or paying some bills, you need to develop an effective exit strategy. Here, we look at some effective Bitcoin exit strategies to streamline your investment game.
Best Bitcoin Exit Strategies
Shed Off Greed
You need to figure out when you’ll exit the market and take some profits for other uses during a bull run. In many cases, traders are often tempted to let their investment ride the wave to realize more profits. However, cryptocurrencies are quite volatile, and the prices may tank in no time, eating up your profits. If you’re too greedy, your profits can quickly disappear, and you may count significant losses.
Considering that the crypto market is decentralized, you’re the only one in charge of your digital assets. Therefore, your trading decisions have a direct influence on the success of your trading decision.
A good strategy to prevent greed is to withdraw a set amount at each profit doubling after successful investments. The amount withdrawn should not reduce your Bitcoin holding too much but should be significant enough to cater to your bills or be used in other investments. To achieve this, you can set price targets and sell a predefined percentage of your Bitcoin. For instance, BTC @ 100k sell 10%, and BTC @ 150K sells 20%. Etc. This strategy will allow you to seamlessly exit the market by selling less Bitcoin every time it doubles. And if it re-enters another bear market, you can either hold or buy more BTC and add it to your portfolio.
Be Patient
Exiting the market during a bearish run is not a good idea, plus you can make significant losses. In a bearish market, don’t panic but rather exercise patience. Just wait for the price to tank as you conduct technical and fundamental analysis to determine the next Bull Run. Based on your market analysis, the next market bounce can take up to two or three months. When you’re sure of a bull run, you may want to maximize the opportunity by selling at the highest possible price and exiting the market using an ideal strategy. Don’t miss a Bull Run opportunity, as it may take up to 3 or 4 years to occur again based on the halving cycle and the historical price movement.
Find out the Risk-Reward Ratio Before You Exit
It’s no secret that exiting a market can be quite challenging. Before you exit, you should be guided by the Take Profit (T/P) levels and the Stop Losses (S/L). Technical analysis is necessary to determine optimal T/P and S/L losses. The Stop Loss should be placed slightly below the support level for a long strategy, while it should place the Take Profit near the resistance level.
When exiting the market, it’s recommended that you maintain a risk-reward ratio of at least 1:2 when placing S/L and T/P orders. The ratio is calculated by dividing the amount you’re prepared to lose by the profit you desire to achieve. A high risk-reward ratio means that it’s safe to exit the market. However, it should be used cautiously and in combination with other market exit indicators.
Divide Your Bitcoin and Sell in Tranches
Another excellent strategy for exiting the market is dividing your Bitcoin, establishing a single high price target, and selling in tranches. Based on how fast/slow the price moves into your target, you can sell your BTC holding in 3 to 5 tranches. The slower the market movement, the more tranches you have to use. Selling your BTC holding in tranches creates a smooth exit strategy and enhances your chances of realizing higher returns.
Spread your BTC Holdings across Different Exchanges and Platforms
Any avid BTC investor must spread BTC holdings across multiple exchanges and platforms such as wallets. This not only spreads the risk of holding your coins but also enables you to enjoy different fees when exiting the market. Besides, exchanges may break down at opportune times due to increased traffic making you miss a perfect market exit chance. Therefore, to avoid such inconveniences, have at least 4 to 5 different exchanges you use while trading BTC.
Analyze Market Sentiments and Topping Signals
If you’re looking to exit the market, it’s essential to analyze the market sentiments to determine other traders’ general perceptions. This can easily be done using Bitcoin sentiment analysis tools, usually available for free or at a small cost. For example, if the general perception is to sell, it may be the right time to exit the market.
In addition to sentimental analysis, you need to employ technical analysis in analyzing topping signals from on-chain data. It can establish an increase in large pools, old wallets, and whale selling – several websites provide such information. Analyzing a topping signal combined with sentimental analysis gives you a more in-depth insight into whether it’s right to exit the market or still hold on to BTC.
Have a Workable Plan
Finally, have a workable plan. Write how you want to exit the market and at what price you will sell your cryptocurrencies. It’s often recommended that you base your plan on your objectives rather than the prevailing price of Bitcoin. Your plan should also include what you plan to do with the proceeds from your Bitcoin sale. For instance, have an idea of where you’ll invest or deposit your money for the short term until you have a definite plan on when and where you’ll spend your earnings. If you need to reinvest your money into different asset classes, such as real estate and stocks, it’s crucial to do in-depth market research to avoid losing your entire proceeds.
Closing Words
Btc
Bitcoin
$62.547
price
price
0.84959%
price change
Exiting the market is a crucial skill needed by any Bitcoin investor, especially if you plan on reinvesting the money not in cryptocurrencies but in another investment. You also need to exit the market if you want to take some profits to pay bills. To effectively exit the market, you need to: have a clear plan, use multiple exchanges and conduct sentimental and technical analysis. Most importantly, always buy and never sell all your Bitcoin holding unless you have to.
Previous
Blockfolio – A Helpful Crypto Tracking Tool and Much More
Next
Crypto Wallet Passwords and How to Recover Them
Written by
Wayne Jones
@wjones
561 posts
More author posts
How SolidProof Ensures Transparency and Security through Audit and KYC Systems
Solidproof is among the most trusted blockchain security and smart contract auditing companies in the crypto market today. The Germany-based company aims to fix the security and transparency issues smothering the crypto space. But, unfortunately, as the industry attains more progress, so do the opportunities for bad actors to victimize honest investors. According to a yearly report on crypto crimes by Chainalysis, $14 billion of all transactions in crypto in 2021 were associated with scams or money laundering. These figures…
3 years ago
The Importance of Backtesting Crypto Investment Strategies
Crypto backtesting involves running and applying a specific trading strategy to historical market data to evaluate how it would have performed. The analytical method delivers a clear overview of qualified strategies that can be applied in a real-world environment using real capital. The mathematical simulation provided by crypto backtesting is an essential component that traders use to analyze past market data and ultimately develop an effective trading system. The process can empower investors to pick out a crypto strategy that…
3 years ago
aelf Announces Its First Metaverse-Themed Hackathon with Money Prizes
aelf network has announced its metaverse-themed Hackathon, “Top of OASIS,” which will take place on December 12, 2021. The platform encourages all potential participants to advance their project proposals by February 9, 2022. Additionally, aelf will offer full support to all the projects participating in the Hackathon. Developers can register their blockchain projects, including DeFi and GameFi proposals, and compete for spots in aelf's prizes pool. Top of Oasis Hackathon Main Dates Top of OASIS is aelf’s first metaverse-themed blockchain…
3 years ago
Institutional Investors who have Expanded their Portfolio in 2021
Cryptocurrency and blockchain investments from the first nine months of 2021 have surpassed last year's total. In the first half of 2021, the worldwide crypto and blockchain activity was $8.7 million, more than double last year's figures. It is a significant sign that institutional money is streaming into crypto. Furthermore, it increases the investor base, and thus the institutional awareness and knowledge of this sector are also surging. The "institutional adoption" of crypto is already underway. Today we focus on…
4 years ago
Understanding Cardano, IOHK, and EMURGO
Cardano is the first decentralized public blockchain platform developed on a research-first-driven approach. Charles Hoskinson, the co-founder of Ethereum, created it in 2015 and later launched it in 2017. It comprises a development team of global researchers and engineers. This platform's development continued thanks to academics, computer scientists, and their peer-reviewed papers. The Cardano ecosystem involves three founding entities that work together. These partners are EMURGO, IOHK Company, and The Cardano Foundation. Cardano in a Nutshell Cardano is a public…
4 years ago
Billionaires Who Have Publicly Showed Interest in Cryptocurrencies
The cryptocurrency boom of 2017 saw a rise in their acceptance from prominent economic figures. Since then, their volatility has continued significant investments in them. Today there's a push for their global mass adoption. Industry-leading lights and renowned celebrities have expressed their support for the assets. Nothing best captures this reality than Forbes's recent list of the world's wealthiest people. It indicates a growth in the number of crypto billionaires over time. From an asset that courted controversy and skepticism,…
4 years ago
Publish your own article
Guest post article. Guaranteed publishing with just a few clicks
START PUBLISHING ADVERTISE WITH USBrowse categories
Explore trending topics in the crypto community right now.
Bitcoin
SEC Greenlights Multiple Bitcoin ETFs, Signaling Major Leap for Cryptocurrency Markets
The U.S. Securities and Exchange Commission (SEC) has made a landmark decision by approving 11 spot bitcoin exchange-traded funds (ETFs). This move represents a significant moment in the cryptocurrency industry, marking a shift towards greater institutional adoption and accessibility for investors. The approved ETFs include products from major firms such as BlackRock’s iShares Bitcoin Trust, Grayscale Bitcoin Trust, ARK 21Shares Bitcoin ETF, Bitwise Bitcoin ETP Trust, WisdomTree Bitcoin Fund, Fidelity Wise Origin Bitcoin Trust, VanEck Bitcoin Trust, Invesco Galaxy Bitcoin…
Marius Bogdan Dinu 
@bdinu89
@bdinu89
1 year ago 
597 views
Bitcoin Should be Banned in the United States: Charlie Munger
Berkshire Hathaway’s vice chairman, Charlie Munger, called for a ban on cryptocurrency in the United States on Monday, similar to the one in China. In an op-ed published with the Wall Street Journal, Munger argued that Bitcoin isn’t a currency, commodity, or security, but simply a form of gambling “ with a nearly 100% edge for the house. As such, the enactment of a federal law should ban such things from happening. Munger cited the Chinese communist party’s ban on…
2 years ago 1.5 k views
Tesla’s BTC Positions Remained Unchanged in Q4 of 2022
According to a new earning report from automotive manufacturer Tesla, the company did not sell any of its BTC holdings in the fourth quarter of 2022. Amid speculations that the company had traded BTC during the testing bears, CEO Elon Musk revealed it was yet holding on to its BTC stash. Tesla Maintains Holdings After Initial Sell-Off In Q2 of 2022, Tesla opted to sell 75% of all its BTC. The car manufacturer received close to $950M in exchange. Notably,…
2 years ago 1.5 k views
Here’s When Grayscale Debates the SEC in Court on its Bitcoin Spot ETF
The District of Columbia Court of Appeals has marked a date for when Grayscale and the Securities and Exchange Commission (SEC) may present oral arguments regarding the approval of a Bitcoin spot ETF. Each side will present its case at 9:30 am ET on March 7, with the SEC arguing against the product, and Grayscale arguing in favor. Grayscale VS SEC The court date – revealed in a court order filed on Monday according to CNBC – is much earlier…
2 years ago 1.8 k views
Ethereum
Ethereum’s Zhejiang Staking Withdrawal Testnet for Shanghai is Live
At 15:00 UTC on Wednesday, the much-anticipated Zhejiang testnet for staking withdrawal went live on Ethereum’s Beacon chain. Zhejiang will enable the testing of the Ethereum Improvement Proposal (EIP) 4895 which allows for staking withdrawals. This is in preparation for the network’s next major update, the Shanghai hard fork slated to launch sometime in March. Users Can Make Simulated Withdrawals with Zhejiang In a tweet yesterday, DevOps engineer at Ethereum foundation Barnabas Busa gave details about the Zhejiang testnet slated…
2 years ago 1.6 k views
Ethereum Devs Disagree Over Technical Tweak as Shanghai Upgrade Nears
Post-merge Ethereum users have been eagerly awaiting the commencement of the network’s next major upgrade, Shanghai. However, after over 3 months of prep time, it appears the Shanghai rollout isn’t going as smoothly as expected. What Exactly is the Shanghai Upgrade? In September last year, the much-publicized Ethereum Merge also known as the Ethereum 2.0 upgrade went live. Ethereum underwent some significant changes as its consensus mechanism transitioned from proof-of-work to a cost-efficient proof-of-stake system. However, since the Beacon launch…
2 years ago 1.6 k views
FTX Hacker Converts 50k Stolen ETH to BTC
Per a report from blockchain analysis firm Chainalysis, the attacker behind the Nov 11 FTX exploit, is converting the stolen ETH to Bitcoin. There were muted fears the seemingly inexperienced perpetrator could dump all its ETH holdings. On Sunday, the attacker dumped 50k ETH on-chain, with ETH's price dipping by almost 7%. https://twitter.com/chainalysis/status/1594349583416840199?s=20&t=pgvQHeVytI20eKQ1ls9bxw Hacker Moves 50,000 ETH to New Address Over the past week, the perpetrator had been steadily swapping the cryptocurrencies they had carted off for Ether tokens. This…
3 years ago 1.9 k views
Censorship Concerns: 51% of Ethereum Blocks Now OFAC Compliant
According to new data, over half of the blocks on the Ethereum network now reportedly comply with the US Treasury OFAC’s standards. This comes roughly a month after the platform’s monumental merge update. Phasing Out Tornado Cash The Office of Foreign Assets Control is the intelligence and enforcement agency of the US Treasury Department. Indeed, the OFAC administers and enforces US financial sanctions. A prime example of this is the recent, highly-publicized ban on crypto mixer Tornado Cash. According to…
3 years ago 1.8 k views
Trading
How to Leverage Arbitrage Opportunities in Crypto Markets
Cryptocurrency arbitrage has become an increasingly popular investment strategy as the crypto market grows and evolves. Arbitrage involves taking advantage of pricing discrepancies between markets or exchanges to profit. Investors can leverage profit opportunities by understanding cryptocurrency arbitrage while managing associated risks. In this guide, we'll explore cryptocurrency arbitrage and how it works. A Bitcoin-related example will help us illustrate the concepts of this strategy. What is Arbitrage and How Does it Work in Crypto Markets Crypto arbitrage trading is…
2 years ago 3 k views
The Different Types of Copy Trading in Crypto
Are you interested in trading cryptocurrencies but feel intimidated by the complexity of the process? Copy trading is a great way to get into crypto without needing to be an experienced trader. With copy trading, investors can benefit from the experience and knowledge of more experienced traders, allowing even beginners to succeed. How does copy trading work, and which tips do you need to know to succeed? In this article, we'll explore all aspects of copy trading in crypto. What…
2 years ago 1.7 k views
How to Spot an Unsafe Crypto Exchange
Cryptocurrency exchanges have become increasingly popular as they provide a platform for people to buy and sell digital assets. Unfortunately, not all crypto exchanges are safe or reliable. With the rise of cybercrime and fraud, you must learn to spot an unsafe crypto exchange before investing your money. This guide will help beginners identify and avoid potential risks when selecting a cryptocurrency exchange. The Role of Crypto Exchanges on the Digital Assets Market Cryptocurrency exchanges play a crucial role in…
2 years ago 2.2 k views
What Is Grid Trading in Crypto?
Crypto grid trading has become a popular strategy because of its ability to help traders capitalize on market volatility. Grid trading means you can produce consistent profits by taking advantage of price differences in different markets or time frames. By establishing buy and sell orders at predetermined intervals, you can take advantage of these fluctuations in an automated way. This guide will explore the different aspects of grid trading and provide an overview of its benefits, challenges, and more. Through…
2 years ago 1.6 k views
Tech
Introducing una Messenger: A Paradigm Shift in Blockchain Connectivity
The digital landscape is set for an unprecedented transformation with the introduction of una Messenger, the latest innovation from web3 development powerhouse Wemade. This platform represents an evolution of the "PAPYRUS Messenger," serving as the cornerstone of the ambitious "unagi" initiative, aimed at catalyzing the mass adoption of blockchain technology. The "Unbound Networking & Accelerating Growth Initiative" seeks to bridge the divides between diverse blockchain services and networks, heralding a new era of interconnectedness. A New Frontier in Blockchain Communication…
Marius Bogdan Dinu
@bdinu89
@bdinu89
1 year ago 574 views
Bit2Me Champions WEMIX Token in Pioneering European Listing
Bit2Me, Spain's premier virtual asset exchange, has recently broadened the horizons for cryptocurrency enthusiasts by listing WEMIX, the cornerstone token of the WEMIX3.0 blockchain ecosystem. This marks a notable achievement as WEMIX's inaugural venture into the European market, emphasizing the token's role in facilitating a range of blockchain-based activities, from gaming transactions to decentralized finance (DeFi) applications. Launched with the intention to democratize access to WEMIX for the 450 million Spanish speakers around the globe, this strategic move aligns with…
Marius Bogdan Dinu
@bdinu89
@bdinu89
1 year ago 404 views
CryptoVirally Expands with Fresh Crypto Marketing Offers and Cointelegraph Upgrades
In an exciting update for the cryptocurrency marketing landscape, CryptoVirally has announced a series of new entries and enhancements to its already comprehensive range of services. These updates, aimed at providing tailored marketing solutions for crypto projects, include new limited-time offers and expanded options for Cointelegraph publications. Limited Offers: A Game-Changer in Crypto Marketing CryptoVirally's limited offers section presents an enticing opportunity for crypto projects to leverage high-impact marketing services at discounted rates. These offers, available for a limited period,…
Marius Bogdan Dinu
@bdinu89
@bdinu89
1 year ago 465 views
Breaking Boundaries in Blockchain: WEMIX’s ‘una Wallet’ Sets New Standard for Multi-Chain Asset Management
The WEMIX Foundation has unveiled 'una Wallet,' a revolutionary digital wallet designed to offer unparalleled convenience and security in managing digital assets across various blockchain networks. The announcement, made on January 17, 2024, signifies a new era in the seamless integration of multiple blockchain protocols, including Arbitrum, Avalanche, BNB Smart Chain, Ethereum, Kroma, Optimism, Polygon, and WEMIX3.0. 'una Wallet' is more than just a digital wallet; it represents the culmination of WEMIX's innovative efforts in the blockchain space. It serves…
Marius Bogdan Dinu
@bdinu89
@bdinu89
1 year ago 592 views