Degen Survival Rule: Build a robust exit strategy and reposition your holdings

Author: DUO NINE⚡YCC

Compiled by: Deep Tide TechFlow

The market is surging, Trump is elected, and you're eyeing a Lamborghini, but there's one thing you haven't done.

You haven't sold.

This is the first time I've written about this topic on X, and it quickly spread, garnering over one million views! It seems we need to delve deeper into this issue, so let's get started.

In cryptocurrency, the biggest mistake isn't that you bought meme coins or similar high-risk tokens.

No.

The biggest mistake is never selling and exiting your position! That's how you end up back at zero. Just like this person. Let's explore this further.

To win in this game, you must take five actions. Let's start with the most important one.

1. Create an Exit Plan

That person didn't sell, and their $4 million paper profit turned into $77,000. I'm here to teach you how to avoid this rookie mistake.

Summary: Sell whenever it's a life-changing moment! A detailed explanation starts in the next paragraph.

When the market is rapidly rising, as it will again, greed takes over! You made $4 million in a few weeks, so waiting a few more weeks to sell seems fine, right?

Wrong!

Don't let greed turn into regret. If you've made five to six zeros in profit, sell.

Next is when to sell.

The exit window may be at the end of 2024 or early 2025. When BTC hits a new high, FOMO and euphoria will begin. The peak will likely come right after or just before the U.S. elections, most likely this December.

Trump is 100% supportive of cryptocurrency, so this narrative fits perfectly. Why?

Dumb money (you) will buy in FOMO, while smart money (VCs) will sell. There's no better time to sell than during market euphoria!

Having an exit plan helps keep you grounded. Otherwise, fantasies will take over, and you'll forget to sell.

Study the cryptocurrency pyramid. If you're at the bottom, your odds are low, and most of the information you receive is false. Understand how the game works, and exit the cryptocurrency casino when your pockets are full of cash.

Next is crucial!

2. Prepare for the Upcoming Bear Market by Sitting on Profits

Breaking news: A bear market is coming!

Trust me, it will come. Hard. Possibly in 2025. There isn't much time left to sell. If I'm generous, we have 6 to 12 months left. Maximize this when the market starts to rise again.

I expect one more massive surge, then the market will turn. You have one last chance to sell. Don't miss it. Some believe the peak will come later in 2025. However, so far, price trends indicate this cycle is faster, with BTC hitting a new high in March 2024. This is before the halving in April!

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• Hey, friend, I really liked your post! I saw you say the market peak will come soon. Why do you think so? Just curious, because many people are talking about late 2025.

• Thanks! Most people have no concept of market cycles; they just project their biases onto the charts. The current cycle is faster, and BTC reached a new all-time high before the halving. So we might peak earlier as well. Of course, I could be wrong, but don't trust anyone except price trends. We can reassess at the end of 2024. ;)

If this trend continues, the market might peak even earlier. Either way, follow the price trends, nothing else. Don't believe influencers will act in your best interest; go back to the cryptocurrency pyramid above and study it to understand why.

When you exit this market, you're exiting by selling BTC, gold, or dollars. If you plan to hold altcoins, you must be a rookie. Next is why.

3. Plan to Liquidate All Altcoins in the Next Bull Run

Sell everything, then wait for the market to adjust. Altcoins can drop 90% to 99% in a bear market. Buy back at a discount a year or two later (more on this later). Don't rush!

Everyone loves Solana now, but look at the impact of the last bear market on its price! 99% of altcoins will behave like this when the next bear market arrives. Don't expect things to be different. Instead, plan for this scenario.

Use those profits wisely and buy assets during panic—panic will definitely come! Don't buy back when the market is rising further.

4. You've Exited, Stick to It! Don't Gamble

A quick way to lose when re-entering the market is to buy during random surges. Instead, you might buy in the last wave before a crash.

I recommend waiting one to two years after the market peaks before considering re-entry. Waiting a year is the minimum! This means during this period, you shouldn't touch or even think about pressing the buy button. Just forget about cryptocurrency during this time.

The only exception is new projects that innovate in some way. But even here, the risks are high. However, early entry can be decisive. In this case, whatever you decide, never go all-in on one altcoin. Never. The only exception is Bitcoin.

After you sell and sit on substantial profits, it's time to plan your re-entry into the market.

5. Rather than Rebuying at the Peak, Plan to Start Buying at the Low

Look at your profits and create a distribution plan for the bear market. How much BTC? Altcoins? New high-risk tokens?

Next are the rules.

A good general rule is to only buy altcoins when they drop 90% or more! In the Solana chart above, the price dropped 97%! In the case of Bitcoin, only buy when it drops more than 60% from its all-time high. For ETH, it's 70% or more.

Note that ETFs may change the price dynamics of BTC and ETH in the upcoming bear market. Update your exit plan based on new data, especially at the end of 2024. By then, we'll have a clearer picture of whether my assumptions above are accurate. In any case, I'll update you later this year; just keep an eye on this newsletter.

If you don't take this market seriously, the market won't take you seriously.

It will take all your profits and run away with them, but you'll do better next time.

If you stick around.

• Rule 1: Never lose money.

• Rule 2: Never forget the first rule.

I've seen enough cycles to know what happens next. Most people don't. Do you know why? Because we are still in the early stages of this emerging market! Cryptocurrency just got its first ETF, and presidents are now talking about it. It took a long time to get here.

But this is just the beginning!

There are more things to come, and you can earn massive wealth in this field, provided you take it seriously!

It's all fun and games until you see five to six zeros in your wallet. Those can have life-changing impacts.

Don't let it slip away.

That will be your signal to shift from wealth creation to wealth preservation.

Most people fail in this transition and pay a heavy price for it.

This means you need to ensure your newly acquired wealth. Don't gamble it on meme coins. Only extreme speculators can make millions out of thin air. But likewise, only extreme speculators can lose it.

So what should you do?

You need to grow, you need to mature.

This often means focusing on Bitcoin. Most people will naturally gravitate towards Bitcoin because of what it represents. It is the ultimate tool for protecting your wealth!

But you have to own it first. So you need to be an extreme speculator, but learn when to stop!

This is based on my story; yours may be different, but the lessons are always the same.

Either way, the market will humble us all.

But you have the ultimate power:

You decide when to enter and exit this market!