When it comes to investing in an asset class as volatile and risky as cryptocurrency. The only way you can confidently secure your gains is by taking profits along the way. We must always remember that there are no guarantees in this market. There is a chance we could wake up tomorrow and prices could be down 50%, or even more.
That is the advice I would give anyone just entering this market, as it is the smartest investing strategy. However, it is advice that I often have a hard time following myself. In fact, I have never sold out of Bitcoin or Ethereum for cash. Living through several bull and bear cycles in this market I have seen days where the value of my portfolio ballooned to an amount that I never thought would be possible for me. Only for it to be all taken away when the market swings in the other direction.
During those downtimes, I often had an inner debate with myself. Perhaps I should have sold and secured my future. What if the market never recovers, or sets new highs? While the cryptocurrency future is much more secure in today’s world. Years ago that wasn’t the case, and after blow-off the top moments in price there were real doubts about if this was the end of this industry. However, this never changed my strategy.
Simply put, there are two reasons why I have never sold my Bitcoin.
The first is that I have never invested more than I can afford to lose. This is something I have said time after time. But it is such important advice that you need to always remember it. The money that I invested into this market, was always money that I could afford to lose. Of course, I would be sad to lose my money if BTC went to zero, but it wouldn’t have been the end of the world. I would still be able to pay for all of the necessities of life. Food, rent, gas, and all the rest of my bills. The problem that people run into is that when they are putting nearly everything that they have into this market. Where if one bad thing happens in real life or in the crypto market, they need to sell out of their positions in order to survive. One other key benefit is that when you are investing safe amounts of capital, you begin to worry less about the daily up or downswings in the market price.
The other reason I have never sold is that I have complete confidence in the future of Bitcoin and the cryptocurrency market. Everyone should do their own research, but I have come to the conclusion that there are two realistic scenarios for Bitcoin. It will either go to zero and disappear, or it will be worth significantly more than what it is today. I tend to believe in the latter option. Because I believe it hasn’t even approached its full potential, that makes me very hesitant to even consider selling. Just the thought of selling Bitcoin at a price of $20k, only to see it go up to $1 million in the future would fill me up with a lifetime of regrets. Especially if I were to sell multiple Bitcoin.
At the end of the day, everyone needs to make the decision that is best for them. If you can dramatically change your life for the better by selling your crypto, I would highly recommend it. Being able to fully escape from debt is a life change that few recognize how much stress it could eliminate from your life. For better or worse I am holding onto my Bitcoin trying to hit a home run. With the end goal of hoping to become wealthy. I have accepted either a positive or negative outcome already, and have put my cards on the table. The only scenario that I could ever see myself selling out of Bitcoin before this happens is if there was a bug or change in the protocol that caused me to lose trust in it.
How about you? Why haven’t you sold your crypto yet?
Read my articles first on
or
As always, thank you for reading!
