Degen 101: Create an exit plan and reallocate your positions
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Degen 101: Create an exit plan and reallocate your positions
If you don't take the market seriously, the market won't take you seriously either.
Navigating Web3 tides with focused insightsAuthor: DUO NINE⚡YCC
Compiled by: TechFlow
The market is surging, Trump is winning, you're looking at Lamborghinis—but there’s one thing you haven’t done.
You haven’t sold.
I wrote about this topic on X for the first time, and it went viral—racking up over one million views! Seems like we need to dive deeper. Let’s get started.
In crypto, the biggest mistake isn’t buying meme coins or other high-risk tokens.
No.
The biggest mistake is never selling and exiting your positions! That’s how you end up back at zero. Just like this guy. Let’s explore this further.
To win in this game, you must take five actions. Let’s start with the most important.
1. Make an exit plan
This person didn’t sell, and his $4 million paper profit turned into $77,000. Here’s how I’ll teach you to avoid this beginner mistake.
Summary: Sell when it’s a life-changing moment! Detailed explanation starts in the next paragraph.
When the market surges quickly—as it will again—greed takes over! You made $4 million in weeks. Waiting a few more weeks to sell won’t hurt, right?
Wrong!
Don’t let greed turn into regret. If you’ve already made profits with five or six zeros—sell.
Now, when should you sell?
The exit window could be late 2024 or early 2025. When BTC hits new highs, FOMO and euphoria will kick in. The top will likely come around—or just after—the U.S. election, most probably in December this year.
Trump is 100% pro-crypto, so this narrative fits perfectly. Why?
Dumb money (you) will buy into FOMO, while smart money (VCs) will sell. There’s no better time to sell than when the market is euphoric!
Having an exit plan helps keep you grounded. Otherwise, fantasies take over, and you forget to sell.
Study the Crypto Pyramid. If you’re at the bottom, your odds are low—most of the information you receive is false. Understand how the game works and exit the crypto casino when your pockets are full.
Now, here’s something crucial:
2. Prepare for the coming bear market by sitting on healthy profits
Breaking news: A bear market is coming!
Believe me, it’s coming—hard. Probably in 2025. There won’t be much time left to sell. If I’m generous, we have 6 to 12 months. Maximize this period when the market starts rising again.
I expect one final major rally before the market turns. This is your last chance to sell. Don’t miss it. Some believe the top will come late in 2025. However, price action so far suggests this cycle is faster—BTC hit new all-time highs in March 2024, *before* the April halving!
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Hey friend, I really liked your post! I see you think the market top will come soon. Why do you think that? Just curious because many people are talking about late 2025.
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Thanks! Most people don’t understand market cycles—they just project their biases onto charts. This cycle is faster; BTC reached new ATHs before the halving. So we might top out earlier too. Of course, I could be wrong, but don’t trust anyone except price action. We can reassess by end of 2024. ;)
If this trend continues, the market may peak even earlier. Either way, follow price action—and nothing else. Don’t trust influencers who don’t have your best interests at heart. Go back to the crypto pyramid and study it to understand why.
When you exit this market, you do so by selling into BTC, gold, or USD. If you plan to hold altcoins, you’re definitely a beginner. Here’s why.
3. Plan to dump all your altcoins during the next rally
Sell everything and wait for the market correction. Altcoins drop 90% to 99% in bear markets. Buy them back at a discount a year or two later (more on that shortly). Don’t rush!
Everyone loves Solana now, but look what happened to its price in the last bear market! 99% of altcoins will crash like this in the next bear market. Don’t expect things to be different—plan for it instead.
Use these profits wisely and buy assets during panic—panic will come! Never buy back in during further rallies.
4. Once you’ve exited, stick to it! Don’t gamble
A fast way to lose money is re-entering the market during random rallies. Worse—you might buy the final pump before the crash.
I recommend waiting one to two years after the market peaks before considering re-entry. One year is the absolute minimum! That means not touching—or even thinking about clicking—the buy button during this time. Just forget about crypto for a while.
The only exception is genuinely innovative new projects. But even then, risks remain high. Early entry could be decisive. In such cases, whatever you decide, never go all-in on a single altcoin. Never. The only exception is Bitcoin.
After you’ve sold and secured strong profits, it’s time to plan your re-entry.
5. Instead of buying back at the top, plan to start buying at the bottom
Look at your profits and create an allocation plan for the bear market. How much BTC? Altcoins? New high-risk tokens?
Here are the rules.
A solid rule of thumb: Only buy altcoins after they’ve dropped 90% or more! In the Solana chart above, the price fell 97%! For Bitcoin, only buy after it drops more than 60% from its all-time high. For ETH, 70% or more.
Note: ETFs may alter BTC and ETH price dynamics in the upcoming bear market. Update your exit strategy with new data, especially by late 2024. By then, we’ll know whether my assumptions above were accurate. Either way, I’ll update you later this year—just stay tuned to this newsletter.
If you don’t take this market seriously, the market won’t take you seriously either.
It will take all your profits and run—but you’ll do better next time.
If you stay disciplined.
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Rule 1: Never lose money.
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Rule 2: Never forget Rule 1.
I’ve seen enough cycles to know what comes next. Most people don’t. Know why? Because we’re still in the early stages of this emerging market! Crypto just got its first ETF, and presidents are now discussing it. It took a long time to get here.
But this is just the beginning!
More is coming, and you can build massive wealth in this space—if you treat it seriously!
It’s all fun and games until you see five or six zeros in your wallet. Those can be life-changing.
Don’t let it slip away.
That will be your signal to shift from wealth creation to wealth preservation.
Most people fail at this transition—and pay dearly for it.
This means securing your newly acquired wealth. Don’t gamble it on meme coins. Only extreme speculators make millions out of thin air. But likewise, only extreme speculators lose it all.
So what should you do?
You grow. You mature.
This usually means focusing on Bitcoin. Most people naturally gravitate toward BTC eventually, because of what it represents. It’s the ultimate tool to protect your wealth!
But first, you have to own it. So go ahead and be an extreme speculator—but learn when to stop!
This is based on my story—yours may differ—but the lesson is always the same.
In any case, the market humbles us all.
But you hold the final power:
You decide when to enter and exit this market!
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