Crypto exit strategy (selling to fiat)
For those that plan to take profit out, what is your strategy? Is Coinbase really the only option to sell to Fiat or are there alternatives?
Never sell crypto, that defeats the point and you'd have to pay taxes. Just buy your lambo or tesla directly
That's still taxed
Sales tax is generally less than cap gains tax :)
I told myself I would sell when my crypto holdings surpassed 10% of my net worth - which I did once and recouped all the money I put in over the years. It’s back up over 10% nw but I really don’t need the money now or want to pay the taxes.
I would not sell. I will just use the crypto as collateral to borrow money.
You don’t take any % of profit out at all? If I could buy real estate with crypto that would be ideal.
You definitely can. I can pull a loan at 1% interest and buy the home.
I have a percentage of my portfolio allocated to crypto. I try to keep my portfolio allocation balanced first with my contributions, but if I have too much in crypto according to the allocation, then I sell. I also buy more when I contribute to the portfolio, or of the allocation is too small during a rebalancing. I rebalance quarterly or when a big market movement happens and my allocation is 50% larger than it should be, or 50% smaller. Last time I sold I used BlockFi because that's where I had the crypto I wanted to sell. I might of been able to shop it for a better deal, but wasn't too worried about it.
>selling your winners NGMI
If you pick an allocation and you're portfolio goes up, you're winners are going up too.
Anyone telling you not to sell is not being reasonable. It is smart to take profits at some point. Eventually there will be a correction that causes many people to rethink how they invest. 2018 did that to me, I wished I had sold more aggressively then I could have repurchased for significantly less. I’m not saying a correction the size of 2018 is going to happen again, but just think about how much cash you have saved on the side in the event a major correction occurs.
You don't sell. You put them as collateral and borrow fiat if you want to. Meanwhile you can do defi lending. Yield farming and liquidity mining
Btc atms exist
High fees and few machines that spit back out cash? No thanks, UberJr
Lower than paying taxes on them gains