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What Is A "Good" Amount Of Bitcoin To Hold?

By LocoSocioCrypto | LocoSocioCrypto | 15 Feb 2024


One thing that I have experienced in my years of HODLing Bitcoin is the feeling of "damn, I wish I had bought more at X price". Seeing Bitcoin rise of course makes me feel good, but like many others - it also makes me slightly disappointed I didn't stack more while the price was lower. It's a true paradox - on one hand, we want to see the price go up, but on the other, we want low prices to stack more coins.

In this article, I hope to make you, the reader, feel a little bit better about this paradox and how it may impact your mental health. I will also throw out what I think is a good amount of BTC to aim for, as arbitrary as it may seem.

Remember, You Are Already A Winner Just By HODLing Any Amount Of BTC

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If you currently hold any amount of Bitcoin, give yourself a pat on the back - you're already a winner! Why? Because you have consciously decided that you want to invest in the most solid, deflationary asset the world has ever seen. By doing so, you are protecting your capital from the effects of inflation. What you can buy for $10 today will no longer be available to buy for $10 in 5 years. We don't need to look any further than basically any common good that humans need to buy. Shelter, food and transportation are all significantly more expensive today than they were just a few years ago. By investing in Bitcoin, you are actively working to protect whatever amount you invested from inflation - whether that's $100 or $100,000. Trust me, your future self will thank you.

While Stacking Bitcoin Is Important, You Need To Remember You Have A Life As Well 

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On days where I feel as if I did not buy enough Bitcoin in the past, I like to instead focus on where that money went to instead of Bitcoin. I think back to all of my experiences I had with friends and family - whether that was going to sports games, the movies, or just a night out at a restaurant. I look at all of the trips I was able to take and the experiences I've been able to have.

While you can always stack more Bitcoin, you can never stack more time. Maybe I'll look back and regret not adding an extra $100 to my BTC stacks here or there. I will NEVER regret looking back and remembering that amazing trip I took, or the wild nights I had with my friends. We often hear the term "when in doubt zoom out". While this term usually refers to the fact that Bitcoin may experience mild fluctuations in the short term, but is steadily advancing upwards in the long term - I believe we can look at it in another way too. When you feel sad or frustrated you didn't buy more, zoom out and remember all the amazing things you have done in your life with your FIAT money and hopefully this will make the missed gains a little easier to stomach.

OK I Feel Better Now, So How Much Should I Stack?

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Now that we've covered how to deal with the emotions of investing in Bitcoin, let's talk about the whole point of the article, how much BTC should I stack? This will ultimately vary between people, but I would say you should aim to HODL at least somewhere between 0.1 BTC and 0.25 BTC. Why this number?

First of all, I believe this number is still reachable by the vast majority of people reading this article. At its current price - this is how much it would cost you to stack the following amounts:

0.1 BTC = $5,218 USD

0.15 BTC = $7,827 USD

0.2 BTC = $10,436 USD

0.25 BTC = $13,046 USD

Assuming BTC continues its upward trend, the sooner you start stacking the better. Establishing a consistent DCA strategy helps greatly. At $200 per month minimum (or $50 per week) - one could invest anywhere between $2,400 to $2,600 per year. This will not get you to 0.1 BTC in one year, but assuming that Bitcoin continues to rise, one could reasonably expect to reach this goal in roughly 2-4 years using this strategy, depending on market prices. Good things take time, and stacking BTC is no different. Or, you could always say YOLO and drop that amount into BTC right now!

Why 0.1 to 0.25 BTC?

I chose these numbers, because I consider them to be high enough that your BTC holdings will give you significant financial piece of mind. Even at their current prices, holding 0.1 BTC gives you a significant emergency fund to have in case of need. However, let's look at some potential future prices and see where those holdings would leave us in the future.

BTC Price $100,000 - 0.1 BTC = $10,000 and 0.25 BTC = $25,000

  • This is anywhere from a significant emergency fund to a down payment on a house in a lower cost of living area.

BTC Price $200,000 - 0.1 BTC = $20,000 and 0.25 BTC = $50,000

  • Now we're looking at being able to buy a car with no credit, or the equivalent of 1 years salary for a slightly above average US worker.

BTC Price $1,000,000 - 0.1 BTC = $100,000 and 0.25 BTC = $250,000

  • The hopium is strong with this one, but no one can look at those numbers and not feel pretty confident they have a good amount of value locked up!

Conclusion

Ultimately, your goal should be to continue to HODL what you can reasonably afford to, while also making sure to focus on your life as well. HODL hard, but love hard, and live life to the fullest. After all, we never really know when our time will be up anyways!

***Feel free to share what your personal HODLing goals are in the comments and the things you like to focus on outside of Bitcoin!***

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LocoSocioCrypto
LocoSocioCrypto

I am interested in the inter-connection between cryptocurrencies, society, and psychology.


LocoSocioCrypto
LocoSocioCrypto

Examining the inter-connection between cryptocurrency, society and psychology.

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