Not financial advice
Let's say you have 3 BTC, worth approx. ~100k USD. And you ask yourself: should I sell or should I hold?
That's a valid question. If we take a look at how things may turn out: BTC could go even higher - maybe to 100k, then you'd have 300k USD instead of 100k USD, but it could also drop, to say 15k or 10k or nothing, then you'd have 45k or 30k or nothing.
But how do you determine when to sell?
For my journey, I came to the rationale that when or how much to sell should depend on how much you need. Here are some example questions:
- Would my life be worse (maybe way worse) if I had to sell my 3 BTC for 45k or 30k instead of 100k? Or if BTC would be worth nearly nothing (black swan event)?
- Do I need to pay taxes and if so, do I have the money for it? What if it drops so low that I can't pay or which results in not much left after taxes?
- Could I have "upgraded" my life to improve mine/my families happiness?
- Could I have quit the job I hated and focused on/invested in my passion?
- Could I have invested more money into better food/lifestyle for a higher quality everyday life?
Or, on the other hand:
- Would selling my BTC not result in much due to a stable job & income? Maybe the BTC is there as a hedge for the next 5/10 years?
- Do I need to sell the BTC for a much higher value because the sum now wouldn't be a life-changing amount?
I can't answer those questions for you, you have to do that on your own. And the answers will probably vary a lot - from person to person, from life to life, but in my opinion, they're crucial for everyone.
All of this is a marathon, not a sprint. Sometimes, it takes courage to sell when others are cheering, but seeing into the eyes of despair because life-changing money was not realized, is - in my opinion - much worse.
Or, in a nutshell: hodling for a Lamborghini, Ferrari or other luxury goods while not even having a normal car, is foolish.
All the Bitcoins!
Lol, good pic
I believe that whenever I make a decision to sell, I won't overthink my decision, whether the crypto goes 10x from there or 1/10th. Also, not to sell all or buy all in one trade.
Lol, I bought my btc at 800$ and sold them at 5000$. And couldn't invest back till it was peaked at 19k in 2017.
Then, when it was going down, I bought again and lost a lot of my gains. But at that time, I was new to the investing/trading game.
I don't invest/trade with 100% capital now. I keep some of it invested. And whenever it increases, I take out a little bit.
Then whenever I have money and it is down a little bit, I buy some.
Maybe super smart people know when to sell. The exact moment. I don't know. I am just happy to sell at profit😅
When to sell, when to buy - these are difficult questions. Fear and greed. These two factors drive the markets - stock and crypto. Even the most seasoned of traders have problems deciding when it is time to sell, or buy. 😊
I would add that do your homework, and follow your feelings. Most importantly, once you made a decision, don't regret it. 😊
When I sell, I do based on what I need, most of the time. I hold a lot, and because it’s proven to work so far, I don’t see a better strategy to managing my portfolio. But recently I have started to hoard stables programmatically. That’s my strategy going forward, hold and hoard
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I'd definitely sell some when the price will look like a volcano ready to blow, but at this point BTC sure looks like a store of value. I would also take into consideration spending BTC, as the cost of my life is quite low and it would take me years to spend all that BTC, considering the price won't get lower than $30,000. By the way, there's a community engagement initiative that I created(#askleo) that you can use if you will for such posts that are supposed to be engaging and act as community talks.
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Great analysis and spot on. Different for everyone. I rarely sell my crypto, but then again, I am in a financial position where if my whole crypto portfolio went to zero, it wouldn't hurt me at all financially, it would suck, but I would still be fine.
Now, to answer all these questions let me just add some "movement" to the picture in your post. }:)
I just watched a really fascinating video about something very similar last night:
I got out of MTG years ago, but I like following Rudy because he is so knowledgeable about this stuff. And he made a really good point in this video. People who invest in commodities and collectibles don't necessarily want to pull their money out because at that point, their money isn't working for them. It's stagnant, doing nothing, and losing growth opportunities. Hell, even a dip in prices can mean an opportunity for profits. I feel like there's some parallels here...
I determined recently to power down Hive and put it on HBD savings. Made an over 50% buying the dip so I have reached my goal. 50% is great and I don’t want to risk losing it. If Hive goes up great, if it goes down I buy cheaper again, and if it goes sideways I am farming the HBD yield
I have no 'normal' car because I don*t want. :)
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STOPCheck out the last post from @hivebuzz:
I really find the last line of this post insightful as most times we live our lives using other peoples decisions and judgements as a means of measuring our own successes and failures, forgetting that we are all fighting different battles.