Operation Kitchen Sink | Planning for Profits and Asset Management

in LeoFinance2 months ago (edited)

I've started to think about how I want to plan to take some profits from a potential bull market. Up to now, I've been acquiring and HODling and, for a long time, had a buying plan in place to reach my various goals, including Orca status on Hive.

The majority of my Hive has been bought since the price dipped below $0.40 and much of it when Hive was $0.10. In the past week, Hive has hit the heady heights of 40 cents again and I was prompted to get a wiggle on.

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Image by Karolina Grabowska from Pixabay If only my kitchen sink was in as good condition!

I remember that it took me some time to find a balance for buying Hive - it created lots of roller-coaster emotions. When to buy, how much to buy, will I lose it all and so on - especially as the price seemed to universally drop every time I made a buy.

Eventually, I learned how to manage those emotions as a small and new investor: I moved from spontaneous buys to setting a budget, buying regularly (in my case every Saturday), regardless of price, and rationalising my investments to myself through the dollar cost averaging (DCA) approach.

Selling has much the same emotions!

How much, when, will I miss out by selling too early, too late, will I miss the bull run by being too greedy etc etc etc. I've read lots of accounts of Hive HODLers who held through the last bull run and then saw their accounts gradually dwindle in the long slow sustained bear market of the past couple of years. Grim!

In the same way that I learned how to buy, I need to learn how to sell - competencies that will become commonplace life skills in the future as cryptocurrencies gain more traction. Starting to think about that, though, also started me thinking about managing my cryptoassets, as they are called by Her Majesty's Customs and Excise, as exactly that: assets.

Again, up till now, my crypto holdings have been part of a learning exercise about how blockchain technology works and understanding the potential of cryptocurrencies through living it. It's been an interesting experience, fun, a pastime. But now, even at these low prices, I find I have cryptoassets with a substantial value and a bit more than a pastime (although I understand that boats as a pastime can easily surpass the amount I have)!

So I've started planning three things:

1. Recovering my initial investment

I've invested several thousands in Hive, my first target will be about recovering that. Here's what I'm doing:

  • set up a no-frills, no charges separate current account expressly for tracking cryptoassets transactions.
  • set up an inventory and accounted for transactions to date.
  • set a target and timescale to recover my fiat investment.
  • set a Hive budget as the disposable assets to recover that stake.
  • established a selling plan with selling thresholds and the quantity of Hive I will dispose of when the price of Hive reaches each of those thresholds.
  • initiate a power-down to release stage one of the liquid Hive budget in the shortest possible time. I plan to start and stop power-downs on a regular basis to quickly release the amount of Hive I want available for disposal at any time.
  • balancing liquidating Hive for disposal against maintaining Orca status.

2. Building my overall asset portfolio

My asset portfolio consists of two shares portfolios, property and cryptoassets. My next big investment will be in my property assets for two purposes - to improve my quality of life and to add value to the asset. I'm looking at a new kitchen sink: already the architect's fees are £750 and we haven't even chosen any taps.

Once stage 1 (recovering my stake) in place, I will be working on how to manage my total assets to release the funding to invest in the property. The architect has told the builder I want to be cooking my Christmas dinner in my new kitchen (yes, I'm getting a new oven as well as a sink).

Although I may have recovered my Hive Power by then, my thinking at the moment is that, at least some of, the funds will come through disposing of some of my Hive-Engine assets.

3. Transferring assets

This is a longer-term plan, but may come into play by the end of this year, depending on what happens with the market. I have always had a plan to transfer assets to other family members. Until now, the price has meant that the asset has not been sufficiently attractive to be valued by the recipients or worth the effort for them to learn how to manage it.

I think this may change over the next twelve months and I'm really looking forward to transferring wealth to a younger generation. Nearly all of them would benefit from a boost, whether it is helping with current economic challenges or enabling them to save for a longer-term future.

There is a fourth objective about retirement and quality of life - but I'll write about that in another post :)

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I like that idea. Thankfully I never put money into Steem, then Hive... However I did put in a load of time. That said I did enjoy said time. I started back on Steem taking out the liquid part of the rewards. I stopped when Steem mooned. I did hate seeing my account plummet :(. I think I like taking out the liquid portion, just to be prudent.

Yes, taking the liquid portion is a good strategy, too.

I believe it gets easier as you keep going :D
And well done you

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Hello @kaerpediem , thank you and good to see you 😍.
Yes, I guess there is something in keeping going!
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Gosh. Well done you. Sounds like you've got it nicely sorted. I just feel overwhelmed by it all. There are so many moving parts and I find the conversion of currencies to Hive to dollars to Sterling (for Hie based coins to be confusing as hell, even after all this time).

I feel I severely lack the fundamentals which is exacerbated by the fact that finance is not something I'm very interested in so I lack sticking power to sort it all out.

I look forward to you future post about your fourth objective - retirement and quality of life, since that is what I'm doing this for - passive income during retirement without reducing quality of life then or now.

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Haha, I wish I did 😂.
I often feel overwhelmed, too, and often cope with it by not thinking about it. But I'm also strongly motivated by being able to pay the heating bill when I'm 90 and that spurs me on. For me, I just set short-term goals, which however sensible and thought out they might come across, do feel a bit hair-raising from my end. But then I also think, well, I can change them when I see how they go. I would like a nice kitchen, though. I've been cooking in something that resembles a cupboard under the stairs for over twenty years.
!ENGAGE 30

I would like a nice kitchen

Me too. Our's is also the size of a large cupboard and there's not much we can do about that. The 80's decor however, complete with sponge painting effect, we have no excuse for. 😂

I told my daughter earlier it now feels like we're living in a student rental.

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a student rental

Hehe, glad I'm not the only one 🙂

Thank you for your engagement on this post, you have recieved ENGAGE tokens.

I think there's more of us thinking about taking some profit now - my strategy (which you couldn't really have missed) is to diversify Hive tokens and some other alts into stable coins, then stake those in DEFI.

So far it's working out quite nicely, but I've only just begun.

You have to get over that reluctance to sell Hive and you will do - after the first few transfers out it gets much easier, but I'm still holding most.

You just have to take something out on the way up. For me it's 20%, hold onto 80.

That must be some kitchen sink you're buying.

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You just have to take something out on the way up. For me it's 20%, hold onto 80.

I agree - it was just about organising myself. I saw your strategy - good idea.

That must be some kitchen sink you're buying.

I haven't even mentioned the structural engineer and party wall notice ... on the positive side, it will be able to accommodate HiveFest UK in its entirety!

Now you really must post some photos when it's finished!

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Thanks for continuing to make Hive awesome.