Taking profits doesn’t ruin you. Not having a plan for what happens next does. If you’re holding a meaningful position in XRP, whether that’s 300,000 or 5 million tokens, selling some off the top still leaves plenty on the table, especially if the asset appreciates over time.
The Math Behind Selling in Tranches
Think about someone who held 1,000 Bitcoin early on and sold in stages: 100 at $100, another 100 at $500, then chunks at $1,000, $5,000, $10,000, and $50,000. Even after all that selling, they’d still hold roughly 300 Bitcoin once the price reached $100,000. Selling in tranches as an asset appreciates is a strategy, not a failure of conviction, and it works whether the asset in question is Bitcoin or something else entirely.
Taxes Are Your Biggest Line Item
Whatever you sell, you’ll owe taxes on it. Outside of jurisdictions like Puerto Rico or the UAE, where the rules genuinely differ, taxes are typically the largest expense you’ll face over a lifetime, larger than almost anything else you’ll pay for. Planning around that isn’t optional if you want to keep what you’ve earned.
Structure Matters as Much as the Sale
Selling inside an LLC, rather than as an individual, opens up options: using the resulting cash flow to fund travel, buy vehicles or equipment, purchase software, or contribute to life insurance policies and retirement accounts. Buying cash-flowing assets like rental or multifamily property afterward lets you use depreciation to offset the income those assets produce, which is a legitimate way to reduce your tax burden over time rather than eliminate it.
Earn It, Keep It, Grow It
Those are the three stages that matter, and “keep it” is where most people underperform, not because they picked the wrong asset, but because they didn’t plan for the tax bill or the next step. Before you sell anything meaningful, know two things: what the tax consequence will actually be, and what you’re going to do with the proceeds. A rental property, a business, a diversified investment, something that keeps working for you after the sale. Sell without that plan and the gain on paper can shrink fast once tax season comes around.
Educational only, not tax, legal, or investment advice. Check primary sources and speak with a qualified professional before making financial decisions.
