Knowing when to say when...
Typically you hear that phrase when people are talking about drinking. I think it can apply to a lot of other things as well. Since this is Leo Finance, I am specifically talking about crypto.
I have been starting to think a lot lately about what target numbers are going to be for pulling some more of my funds out. I have this massive fear (like many people) that I am going to take a small or moderate gain only to miss out on a huge gain.
This lead me to the phrase "knowing when to stay when".
How do you know when it is the right time?
Of course, many people will tell you just to dollar cost average your way out and then you shouldn't feel bad about it. While that sounds great in theory, in practice it doesn't always turn out for you.
Sometimes, even if it does turn out for you, it still doesn't leave you feeling very warm and fuzzy inside.
I say this because I feel like there is always this little voice in the back of your head telling you that you could have held out just a little longer.
This past weekend my wife and I went down to visit her sister's family in Ohio. It is a four hour drive and since my wife is a pro at sleeping in the car, it left me a lot of time to be in my own head.
I was thinking a lot about my NFT's that I have over on the WAX blockchain. With my debt paid off and my mortgage being the next goal in my sights, I know I need to bring in a pretty significant return on my NFTs.
I believe that WAX has the potential to be a $10 token. Right now it is at $.19. Quite the gap I know, but if it even got to $1.00 I would be set for reaching my goal. It would wipe out all of my liquid WAX though, so this is where my "dilemma" arises.
Let's say WAX climbs to $1.00 per token. Do I sell everything and accomplish my goal or do I hold on and wait for it to maybe go higher?
Or, do I only sell half and partially accomplish my goal?
I have been pretty open about the fact that I sold an NFT that helped me accomplish some of my goals. I converted my WAX to fiat when it was $.25 and took the win. If I had waited a little longer to see if WAX hits $1 (or more) I could have accomplished all of my goals in one fell swoop.
Did I make the right choice? I don't know. I made my moves right before the big pull back, so I kind of feel like I did. Then again, I think we have a crazy summer in store, so maybe just holding a month or two would have been the smarter move...
I think this is a conundrum that a lot of people have faced in the past. I think in the next year even more people are going to be staring this scenario down.
Do you have a plan for it? Do you know when to say when?
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I can see your issue here. It's a tough one alright, seems no matter what you do, you're gonna wish you'd done the other.
I was reading years ago, that wealthy people will purchase an asset then sell half when it doubles, essentially giving them the stock for free. You know of course that noneof this is advice and you will do what is best for your own individual situation. I just wish these crypto assets weren't so closely tied to the Bitcoing price. It's great when it goes up, but when it comes down...
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Yeah, for sure, those drops can really get you if you don't time things right. I guess the smart thing to do is never to take it all out. That way I always have a little in there incase the price explodes.
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The wealthy also tend not to sell but rather leverage the asset for other things.
So in crypto, if someone felt the price of Bitcoin, as an example, is peaking, then one could put that into a liquidity pool and end up leveraging it for another token. If the price still goes up, fine.
This way the asset is still retained, although it might end up being swapped.
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Rule #1: one is never wrong for taking some profits.
This is where greed gets in the way as you described. Sell on the way up is never a bad idea. If you are continually making a profit, your financial life will change.
For me, the best thing to do, from what I researched, is to take those gains (some at least) and get them into income producing assets. Sure, if there is debt there, eliminating that is not a bad idea. But, in this environment, the rate on your mortgage is probably not that bad. Hence, is there a better return out there?
In crypto, we know there is.
So I would toss out the idea of taking some of the money, in this example, from Wax gains and get a part of that into income producing assets. That will likely be tokens since the fixed income market is destroyed right now.
As for the mortgage, that is up to you how you feel about debt. Paying it down so you have more equity in the house is akin to taking money off the table. However, if you can get a much better return on your money as compared to what the mortgage rate is, perhaps play that in a way that you keep increasing your returns.
Not all have to be speculation.
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Yeah, I did take some of the gains that I made off that NFT sale and I increased my stake in some of the CUB Farms by a pretty significant amount. I am happy with the return I am brining in CUB wise now. I'd like to expand into some more DeFi stuff, but CUB is just so solid that I can't really justify it. That is a good point about the interest rate on my mortgage being relatively low compared to what I can make on other investments.
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I don't know but I am stacking more and more WAX. There are plenty of factors that can affect it but the one thing I am most worried about is RPlanet. I have a feeling they will probably try to nerf production rates at some point but who knows.
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Oh, for sure they will. They already hit Koloboks pretty hard from what I hear. I have a feeling anything that isn't their own mining rigs will get nerfed eventually. The good thing is, those other NFTs have other utility outside of RPlanet. I am not giving up on RPlanet, but I don't seem myself making money off of it in four months like I currently am.
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Yea I saw them nerf Kolobok NFTs by 5x in Aether generation while Alien Worlds got like a 50% or 30% nerf at the same time. I just don't know if I should keep grabbing more NFTs to stake on that end but I guess it would also probably mean Aether would be unappealing. I feel like if they kept doing that then their reputation would go down the drain.
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They have to keep it sustainable though. There isn't a token cap on Aether I don't think so eventually it would get out of control if they didn't clamp down on the generation. I have a 5000/hour rig on Atomic Hub for 30K WAX right now if you are interested :)
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Lol. If they don't nerf things then that might be a good return but I don't think it will keep up prices with all the aether being generated.
So I think I will pass on buying it.
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I don't see them ever nerfing their own items. Who knows though. I am just trying to get as much out of it as I can right now. Like I said, I don't think it will last unfortunately. Not unless they find a way to keep people burning Aether. The elements and lands may help with that, but then again, who knows!
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Paying off debt first is the way to go! I'm not a subscriber to the opinion that there's such a thing as "good debt".
Deciding when to make moves is a tough choice because it's nearly impossible to predict which way the market will swing in the short-term. Dips and spikes can be sparked by anything, a celebrity Tweet or a positive/negative mention in the mainstream media. Longer term market trends are much easier to peg. This is why I'm such a fan of cost-averaging.
As I've pulled out more fiat during this bull run and am figuring out where to park it I'm floored by how much more lucrative and advanced the crypto markets are in comparison with legacy finance. After having a bulk of my net worth tied up in crypto these past four years and existing solely in that world it's strange to me that the NYSE still shuts down after-hours and on the weekends and "high yield savings accounts" will only earn you .05% APY (if you're lucky). This doesn't even make up for inflation (2-3%) so you're actually still losing money. I purchased shares of COIN on Robinhood a while ago and have lost nearly 20% of my investment. You can earn a guaranteed 5% (14%+ APY) by staking Zil. I'm conflicted because I know in this world we exist in now you still need fiat currency but when I step foot into that world I can't help but feel like I'm time-traveling to the past.
I agree with you. That is why I was dragging my feet for so long on using the Venmo app. My opinion was, we could be doing all of this with crypto! Are you into any of the DeFi stuff that is out there now? I guess people are killing it on the BSC side of things. I have just recently taken some of my profits and put them into the CUB DeFi project that the Leo team made. I have been impressed with how stable the CUB token has been even during the recent pull back.
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I haven't even dipped my toe into DeFi yet but should. I'm hearing great things about CAKE and recently saw the 7 day return on NFTART was 180,509.54%!
Obviously DYOR, but NFTs have been very very good to me. I don't think the returns we are seeing will sustain at this level, but at least in the short term as long as things keep pumping every now and then, I think people will be looking for places to spend their tokens. I jumped into one of the CAKE pools the other day. I am not making a ton, but I at least have my toes in it.
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Setting an account up on the BSC is well worth it. For the decrease in fees alone (vs ETH)!
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That's not an easy one, for sure. I have a number in my head and that feels very right at the moment because I'm quite far from it, so there's really no action needed on my part. As I get closer to said number, I'm sure I'll be second guessing myself a lot.
I don't really have an opinion if you did the right move because I've never been in that situation (having a mortgage and stuff) but I dread the feeling of debt so I guess I'd probably done the same
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I have a soft target in my head right now. I am maybe halfway there. It is hard because with that soft target I have to account for taxes. That ends up making it 30% to 40% higher than I really need it to be. At that point I just feel like maybe I should say "go big or go home".
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It's been a topic of discussion here lately, not because we don't agree with the other, but more like what's the right move, what's best etc..
You have the same doubts and questions I can see that, so I'm glad we're nog the only ones.
I honestly also think (unless we're heavily invested and can leave all untouched into eternity if needed) that it depends on the project and developments. sometimes projects disappoint suddenly and others surprise you along the way, so trying to try out some different approaches from now on and also build in a few different safety nets probably.
BTW rock on for clearing the debt! That's one we're going to work on soon as well :) Pretty cool!
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Yeah, I think if it were up to my wife we would be cashing it all out right now. I think there is some more room until the top. Hopefully quite a bit more room. I started making some moves today to diversify a little more. Same blockchain, but different projects to try and hedge my bets.
Oh My Gosh! Now that whiskey in the photo makes sense.. you need it! I hear ya on the whole time to think in the car thing.. I do that when I am mowing the lawn.. back and forth - back and forth - crypto thoughts enter my mind. Win or loose, the potential is so freaking exciting to me. I will have to look into WAX.. never heard of it.
WAX is all about NFTs. It is really sweet. I started buying in when it was $.03. They have a ton of big projects happening. They just dropped MLB packs in conjunction with TOPPS.