Dear All,
with Bitcoin rallying we should ask ourselves the question what to do if BTC reaches certain milestones, like 20K, 50K, etc. For how long do you want to hold (all of) it?
One way of course is to ignore such considerations at all, and HODL for the rest of your life (or until moon - or death, whatever comes first). If you are in favor of this opinion, you might skip the rest of this post.
But I don´t want to repeat my mistakes from the previous sharp fall in Jan 2018, when BTC dropped 50% within 2 weeks. I HODLed my coins all the way down and missed tons of opportunities of selling high and rebuying lower - of course in hindsight we are all smarter.
But there likely will be some pullbacks, even if on the long run the direction is only up. Question is how to make best usage of the rollercoaster ride? Are you brave enough to sell, or is FOMO prevailing?
The below graph cannot be overestimated in its importance and relevance, also for us Crypto-Hodlers:
src
When in 2018 BTC went down from it´s all-time high, I also followed pretty much these phases, like disbelief, denial, etc and I waited until 12900 before I sold some in panic (just a minor position), but kept the rest. Later on I grabbed some at a decent price of around 8000 on average, so all went well, but I don´t want to do the ride down again!
So maybe it would be wise to set upfront some targets for automatic selling a part of ones BTC holding, like 5 or 10% at 20K? I am really thinking about selling 5% at 20K, but not sure yet.
Unfortunately we do not know upfront, in which phase we are right now. Are we already in euphoria? Some for sure are 😄.
Some wise men said, when even the delivery boy next door is talking about Bitcoin (OK they didn´t know BTC back then but with stocks it is probably the same) - then it is time to pull the plug. Or in other words: "Be fearful when others are greedy" (quote from Waren Buffet). And greed is right now, what happens with Bitcoin, right?
So be careful and have a preparation to partially let go in case things turn south!
What is your strategy? Please let us know!
made by @doze, from his brandnew gif-collection
Previous posts on Bitcoin:
How many Bitcoin do you own?
Posted Using LeoFinance Beta
I'll probably sell about 20% as soon as bitcoin loses some momentum somewhere above 30 or 40k...it could be much higher, but whenever it slows down above that level I'll take that much out, half to enjoy and half to reinvest. Then if it goes above 100k I'll take out another 20% to reinvest during a pullback.
If it never corrects low enough to reinvest at a lower cost I'll use it to buy some alts, probably Hive and other Hive tokens. In any case 10% to cash out and 30% to reinvest.
when it comes to bitcoin and crypto coins every decision you make is extremely personal, after all it is another investment... people behind the screens playing with numbers and charts...
I've had bitcoin since about 2012 but I started taking it more seriously in 2014, my mindset was "don't sell a penny", only buy when possible. But as time went by I realized that we shouldn't worry about just having bitcoins, I'm a big fan of the network and most of my businesses are working thanks to the benefits of the blockchain, but in my humble opinion, we should try to generate that "cash flow" in order to accumulate more bitcoins. I'm already getting bored of the idea of leaving the bitcoins in my cold wallet and waiting for some whale to push up the price.
My personal strategy will be to sell a part in the range of $19000-20000 and if the price drops in January buy again, it's a temporary behavior, "too high prices in December" "but you surely will get a better deal in the next year.
I agree there will be a kind of setback around 20K. But probably not as big as the previous one. Less indications yet of a bubble.
BITCOIN - NO WAY AM I SELLING ANY OF THAT UNTIL IT GETS TO $90K,
Then I might sell 0.01.
I imagine most of the T10 coins will just follow suit, I've got a fair bit of LTC, I'll be happier to sell that off on the way up.
Hopefully Hive and LEO will also follow BTC Up - my plan there is to skim off the first week's earnings of the month, sell for BTC or ETH and then maybe cash that out every month,
Or I might keep it as BTC and ETH.
But in short, my plan for selling on the way up is to use the crypto I earn here.
As to the other bags besides Hive - I've got BTC limits on those - I might sell off 50% of that on the way up. Maybe. I think I'd rather just hold the BTC.
Posted Using LeoFinance Beta
OK, thanks. Sounds like a good plan.
A part of mine is primed, ready to sell. I see a PS5 and 4k monitor on the horizon!
I have a sell order for 7% at 20k. If it grows beyond that, no issue, the 93% left will do it. The 7% are to make some good profit on my crypto investment. It will not make me rich, but it will show some confidence on the long run. I will reinvest this 7% in a non crypto related business.
Posted Using LeoFinance Beta
Thanks. Makes sense.
At this point I'm planning to hold for the ride until it becomes overheated. Bitcoin doesn't care about physiological markers like 20k or 50k. But follow the herd "investors" do so they are worth keeping in mind.
I think it will go up for at least the next three months and 20k is barely getting started. I'm picking it will go up to about 100k over the next 12 months and then crash when people suddenly realise Bitcoin is an out of date dinosaur.
And when everyone stats blathering on about HODLing or buying Lambos I'll be out of there!
Wow, that is confidence!
Truth is I have no real confidence Bitcoin long term, but I am confident the global economic recession will cause cryptos to pump for at least six months, and Bitcoin has at least one good pump left before it is superseded, so the two may happen right at the same time.
I really respect this outlook. I don't think anyone knows for sure what will happen, so many moving parts, we can just make educated guesses, and this is one I don't hear enough of with all the hype. The hype is justified but too blind.