👀 A different way to take profits

GM everyone. This is 2036.

This year, I want you to give yourself the (almost) greatest Christmas gift of all: profits.

You see, it’s not because the number goes up on your screen that it automatically goes up in your bank account, too.

And it’s about time to start thinking about that.

People who usually aren't into crypto are starting to call me to ask how to buy bitcoin.

This is a good and classic sign that the euphoria phase is in motion. Newcomers are starting to bring in new capital.

But it's also a sign that it will soon be time to start thinking about taking profits.

Now, before you think I’m bearish— I’m not. I think the current crypto cycle will last well into 2025.

Based on the historical length of cycles, crypto should top somewhere between August and October 2025.

But who knows.

Maybe we'll accelerate in December and pull back around the inauguration.

Maybe we'll go straight up until November of next year.

It doesn’t matter.

Unless you plan to ride out your Bitcoin for the long term— in 2025, you’ll want to take some profits.

Now, taking profits isn't a science. It's more of an art - and very personal because it depends on your goals and portfolio size.

But there are some common ways to do it you may have heard me, or others talk about before, like:

• Price: when a high-risk coin doubles, pull out of the principal (or part of it) and leave the rest (e.g. if you invest $10,000 into a coin and it doubles to $20,000, sell $10,000 for cash or BTC/ETH and leave the rest)

• Timing: Sell 30% of your portfolio in December 2024 and 30% in March 2025 - two historically euphoric months

But there's another way better suited to people who prefer steady gains without worrying about timing or price too much.

You may have heard of dollar-cost averaging, the act of buying the same $ amount of assets over an extended period.

It’s technically inferior to buying a lump sum immediately because assets go up and to the right—the longer you’re in, the higher your chances of going up.

But it’s psychologically much easier to deal with than buying in one huge chunk, because it smooths out the price and doesn’t make you feel like an idiot if you buy just before a market correction (been there, done that).

And you can apply the same strategy for the way out.

Instead of waiting for the perfect time or price, you can sell a set % of your portfolio regularly to capture your gains, irrespective of price.

Why would you do this?

It helps you avoid extreme greed when the market is hot (”just another 2X, and I can retire!”) and guarantees you take profits no matter how much higher you think things will go.

So, although you won’t make as much as someone who times the top perfectly, you’ll ensure you actually take profits (which most people won’t).

OK, so how does this work in practice?

A good practice is to sell 1% of your portfolio every week during a defined period of time. If you want to be more aggressive, you could make that 2%—or more.

You could also structure it so that you sell 10% or 20% when your coins hit their all time high again (like Solana did last week), and 1% per week after that, or 4% per week as long as Bitcoin remains above $120,000, or whatever target you have.

You can do this over 6 months, 9 months, 12 months - however long you think the bull market craze will last, and whatever works best for you.

This is a flexible approach. At the peak, you could adjust it to 10% per week.

Yes, you'll miss out on some gains. But you'll be comfortable knowing you are constantly taking profits in an up-year rather than trying to time the exact market swings.

When the market turns, the euphoria is over, and the bear market begins—simply start buying back in.

It's a system. It's not perfect. But it works.

And if you struggle to take profits, it might make sense to consider it.

Remember, life-changing money isn't real unless you use it to change your life.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.