Whether you like it or not, sometimes things change beyond your control and you have no choice but to adapt. This is another trait of a successful investor, the ability to adapt. Something that I have mentioned before in my writings is that revolutions not only create wealth but destroy it. In actual fact, perhaps it is merely transferred from one group to another, rather than destroyed. The group that positions themselves for a revolutionary change see significant wealth, while the group that is obstinate will ultimately lose their wealth.
Essentially, their wealth will be transferred to the group that is positioned appropriately. This is exactly why I try not to be stubborn when it comes to investment strategies and constructs. Due to certain regulatory changes, I am literally forced to adjust how I respond to the close of this bull run, or as near to the close as I can discern.
The Original Plan
I had originally purposed to not sell my long-term holdings at the peak and to maintain a lot in DeFi, in order to produce ongoing income throughout the bear market. Yes, I have long-term trades that I intend to close at the peak. However, I have mentioned before that I value continuous, predictable, and constant income above that of massive gains. This enables me to have a great quality of life.
After my past experiences in the professional world, this has become paramount in my view. I would rather enjoy modest gains and have freedom than have to show up at a 9 to 5 each day. I am willing to compromise in order to create consistency.
I set out to create income, not gains and though sometimes the lines can become a bit blurred, it is at the heart of my strategies. So now instead of generating ongoing monthly income, I am looking towards another idea, while still remaining true to my objective. Just to mention again that regulatory issues have actually forced my hand in this regard but may actually prove to be better in the long-term.
Years Instead Of Months
What I am about to disclose will not really become a reality in a scenario where BTC does not exceed $100K. I guess it could but then I would have to sell a percentage of my portfolio that I am really not wanting to sell. I am looking to sell the long-term altcoin trades that I have been holding for some time, as well as a portion of my Ethereum holdings. I do not intend to sell any of my BTC holdings but we will see.
What I am aiming at now is to cash out enough profit to secure 2 years of living expenses. This will put me in a position to not have to worry about income throughout a traditional bear market. This will hopefully be a minimal percentage of my portfolio but time will tell.
Even More Benefits
What this also enables now, is to stack all my other passive, trading, and content-related earnings for the next two years. This will be great in that I will be earning coins at the bottom of the bear market, which I will be able to hold in anticipation of 2025, that’s if this world is still standing. Even though I will be using these profits as spendable income, I will maximize them in the following way.
Instead of holding this amount in fiat in a bank account, I will keep it in stablecoins. I will earn interest on this holding and while I will be taking from it each month, the principal amount will be earning more in interest. This will ultimately increase my capital and give it an even longer period of use. In essence, it is approximately a 20% additional return on a lump sum that is decreasing by 5% per month.
Some might read that and not quite get it but go and work it out and you may actually be surprised. However, as earlier mentioned, this strategy really requires BTC to break $100K by a substantial margin. I do consider this to be very attainable, all things considered, so we will have to wait and see.
Not Set In Stone
That being said, anything can happen in the market, which always helps to keep one open to adjustments. Always try to maintain the original outcome of your investment strategy. Sometimes you will have to quite simply make changes but if the end result is still preserved then it is not that bad.
I will have to remain quite focused and attentive to the market in the coming months. I do believe that we will see significant price action kick in within the next two to three weeks. Wishing all my readers and subscribers an absolutely amazing final stage of this bull run!