Picture the scene: the crypto market cap reaches the $1 trillion milestone in the next bull run, including a six-figure BTC and alts reaching all-time highs.

You are proudly hodling your bag of cryptos that you have accumulated since the end of 2017 (including new highs on the tokens that you have faithfully clutched onto since the crash in Jan 2018).

Your bag is worth a small fortune. Potentially life-changing for you.

So now, what do you do?

You are still bearing the scars of the last crash and the 90%+ drops have taken over two years to turn around. There is no reason to think that it can't happen again. If the markets go parabolic (and it reaches the point where local taxi drivers are yapping on about their Bitcoin holdings) then it is time to start worrying!

History normally repeats itself.

The temptation is to cash-out. This seems like the safest strategy.

But this means exchanging your cryptos into fiat.... And we all know that hodling fiat is not a great wealth-building strategy in of itself. Plus you'll need to think about managing your tax exposure on the sale.

Rather than simply stuffing your cash 'winnings' under the mattress, you decide to explore alternatives.

You could reinvest your new-found gains into the stockmarket (traditional stocks and shares - perhaps a low-cost Vanguard tracker fund, anyone?) but this might feel a bit pedestrian after the realisation of potentially eye-watering gains in the crypto markets. Plus by this time, your average Joe might have sold his shares to invest in cryptos (FOMO'ing in) and so the stock markets might, by this time, be in freefall.

Or maybe you could invest in bricks and mortar. Acquiring rental properties might be a good solution.

But all of this means that you are now 'thinking in fiat'.

Weren't you part of this new trustless, decentralised, peer-to-peer movement? Are you resorting back to 'fiat safety'?

Meanwhile, the crypto market might surge on upwards for weeks or even months longer. It takes a brave person to walk away from the herd. Will you be one of them?

You need a plan

A plan that works for you.

This might involve a 'phased' sale of certain tokens at certain price-points - perhaps holding onto a % of certain tokens whilst cashing-out completely on others. The choice is yours. There is no right answer as it all depends on your specific circumstances. But it is fun to think about it.

What's your plan for a $1 trillion, $5 trillion and $20 trillion market-cap (we can all dream, huh?!)?

Posted via Steemleo