Let's be real. There is one key reason that the majority of people are interested in crypto. Becoming financially free.

We'd all love to become millionaires whilst only having to invest a fraction of that!

The good news is that with crypto, that is possible. However it does require you to make some investment, be happy to take on the high risk associated with crypto, have exceptional patience, but most importantly, an exit strategy!

Now, you could listen to crypto podcasts, watch crypto videos, pay for crypto expert picks, do hours and hours of research and try and pick the "new BTC" that will go from $0.01 to $20,000.

Don't bother!

Yes, there will be stories in a few years of a crypto that you may or may not have heard of, that went from basically no value to hit unfathomable highs, and some lucky person turned $50 into $5,000,000. But with over 6,000 different coins and growing daily, that odds that you pick this and invest enough are extremely slim.

So what's a simple, low-stress, plan to give us that golden financial freedom? And how many coins do I need?

What is an Exit Strategy?

An exit strategy is simply what proportion of your hodl-ing that you choose to sell when the crypto in question hits a particular number.

Now if you believe in crypto bull Tim Draper's prediction of $250,000 for BTC by the end of 2022, then 4 BTC would do the job. But this plan has a few flaws. At current price ($8795), you'd need over $35,000 lying around to purchase this amount. It is also not a particularly safe way of taking profits out of the market. There could be regulation issues, huge downtrends, and even entire removal of crypto in certain jurisdictions - This is not beyond the realms of possibility. So whilst I, and I'm sure most of you, are hugely pro-crypto and have absolute faith that these transformative technologies are here to stay, it is always sensible to stay safe.

I'll give you my two main crypto exit strategies - BTC and XRP. This makes up around 70% of my hodl-ing. I also have some ENJIN, ETH, 0x, BCH and LINK which each have their own strategies.

BTC

Bitcoin make us the highest proportion of my portfolio. In the next 5-10 years that I will ride the crypto market, it is very unlikely that this will not be the crypto with a dominating market cap despite other crypto showing better utility, faster speeds and solving more pressing problems. That's because, in my view, BTC will be digital gold and will become mainly a store of value with prices being dictated by market volumes and being inversely pegged to stock markets and interest rates.

I currently have 0.36BTC - My aim is to have 2 BTC by this time next year. 

If you want to see how I've grown my BTC over 325% in one year, head over to this post

Here is my strategy:

• All time high $20,000 - Sell 0.2 BTC - $4,000 banked
• $50,000 - Sell 0.3 BTC - $15,000 banked - Running total $19,000
• $100,000 - Sell 0.5 BTC - $50,000 banked - Running total $69,000
• $250,000 - Sell 1 BTC - $250,000 banked - Running total $319,000
• $319,000 - $102,800 tax (UK) = $216,200

As you can see, I take profit out at specific points. I can put this profit into other safer, tax efficient investments and continue to grow my wealth.

I might be missing out of some of the $1 million per BTC predictions to become uber wealthy, but I'm more than happy with the returns here.

XRP

Ripple has enormous potential. You only have to dig a little into this company and the XRP coin to find out that XRP has been designed to work at $10,000. That means that at current price of $0.235, if this comes true, you are looking at a 4.2 million % return!

Realistically, XRP has strong competitions from the likes of Stellar Lumens (XLM) and I don't forsee it reaching these sorts of levels even at market maturation. However, I'm highly confident of the $100 level and even quietly confident on $200.

I currently have around 2,000 XRP - My aim is to have 5,000 XRP by summer.

Here is my strategy:

• All time high $3.18 - Sell 500 XRP - $1,590 banked
• $15 - Sell 1,000 XRP - $15,000 banked - Running total $16,590
• $50 - Sell 1,500 XRP - $75,000 banked - Running total $91,590
• $100 - Sell 2,000 XRP - $200,000 banked - Running total $291,590
• $291,590 - $91,836 tax (UK) = $199,754

Again, similarly to the BTC strategy, I have set key points at which to take profit out of the markets.

If you are super bullish on XRP, you could buy 25,000 XRP at $0.235 for $5,875 and based on this exit strategy, you would be a millionaire. But it is always good to diversify with other coins.

Conclusion

With both of these, the tax liability is likely to be lower as I have done a calculation based on removing that profit within one year whereas it is most likely going to be across a number of years so this total profit of $415,954 is actually a conservative investment. I would expect my profit to be closer to half a million dollars.

Having a strategy means I can ignore the sharp falls and ignore the steep rises (as long as they don't hit a target sell price!), and just wait patiently until I get a price notification that says it's time to sell. No emotions. No worries.

There will be some more aggressive and some incredibly lucky people that will make significant amounts more than my plan. But I will be able to be debt free, mortgage free and support my children in a relatively short period of time.

Do you have an exit strategy? Do you intend to hodl all your crypto all the way to the top?

Let me know in the comments!