What Exit Strategies Can Be Implemented in Crypto?
Just like other investments or businesses, crypto investments also require an exit strategy because the crypto market moves in cycles. Without a clear exit strategy, investors risk losing profits when the market declines. Here are some common exit strategies:
1. Exit According to Market Cycle
The crypto market tends to peak about 500 days after Bitcoin's halving. As this cycle comes to an end, investors can begin trimming positions to realize profits, considering that BTC's price in the previous cycle dropped by more than 50%.
2. Moon Bag Strategy
Suitable for long-term investors who also want to be conservative. The strategy is to sell 50% of the assets after a 100% increase, so the capital is returned and the rest is left to “fly.” If the price declines, at least the capital is safe; if it rises again, there are still remaining assets.
3. Gradual Exit at Psychological Numbers
Selling part of the assets when reaching certain target prices, such as selling 30% at $100K, 50% at $120K, etc. However, there is no guarantee that the price will reach these targets.
4. Trailing Stop
This method raises the stop loss level as the price increases. This technique can secure profits while limiting losses. It requires a deep understanding of market structure and disciplined execution.
