Crypto Exit Strategy — A Quick Guide (January 2025 Update)

When and Ways to Take Profits

With the bull cycle in full swing after enduring a prolonged bear market throughout 2022 and 2023, savvy investors will begin drafting an exit strategy for the coming months.

If past crypto cycles were to give us an idea of market peaks, the latter half of this year (likely around September) would be the time to take some money and run.

There are different ways to take crypto profits. The most popular ones include:

— Converting crypto profits into fiat (USD, EUR, GBP, etc.);

— Converting from altcoins — particularly small to mid-cap ones — into Bitcoin and/or Ethereum, and ultimately converting into fiat or stablecoins,

— Going from cryptocurrencies to stablecoins, remaining in the market and having cash readily available to buy back in when there are abrupt and sharp dips.

— A combination of these, to varying degrees.

I recommend the last point but increase the profit from fiat and stablecoins. When the market has been euphoric for a few months, a significant dump is (often) imminent.

It is pointless to throw in too many numbers here, as everyone’s financial situation and risk tolerance vary considerably.

From my experience, don’t underestimate massive 24 to 48-hour drops across the entire space; these things catch noobs off guard, myself…