I recently came across an interesting interview between Abra CEO Bill Barhydt and an Angel investor on Coin journal regarding the 2017 crypto boom. Barhydt is of the view that it’s Japan that pushed up the market in 2017. However, what I found most interesting is his observation that there is a good percentage of investors who are HODLing, and are unwilling to liquidate irrespective of the price. It doesn’t matter whether bitcoin is at $1000 or $100k, they just won’t sell.

And therein lies the problem. When getting into any investment, you must have an exit strategy. Otherwise, you will pile-up losses in the long-run. That’s because markets move in cycles, and unless you learn how to ride them, you will never make money.

To give you perspective on this, just look at the crypto market in 2017. Anyone who had a good exit strategy made a lot of money by cashing out in December. Those are the same people who will still make lots of money again, in the next boom. Why? Because they are very liquid at the moment, and are collecting high value cryptos on the cheap.

Adopt a similar strategy too. Don’t just HODL without an exit strategy. You may think that you are contributing to crypto growth by doing so, but in reality, you are only hurting your chances of getting wealthy. Besides, if everyone were to HODL, liquidity would dry up, and the market would collapse.

The trick is to approach the crypto market like the wealthy approach the stock markets. They cash out in boom time, and buy-in during market crashes, when everyone else is unsure about getting in.