Many people here have seen massive gains on their original investments and many of you, like me, are young. To come into such a potentially life changing amount at this age and not being around for a long time, it might seem like there are only good times ahead, but that can be deceiving. Everyone talks about hodling, but you need to make the smart decision and do what is best for you. If that means taking out 10%-30% to pay off some debts, buy a house, ect, then do it.
I was inspired to write this article after seeing a series of tweets by Alistairmine, a bitcoin entrepreneur and advocate. He, like many of us, invested early and decided to give advice to many people holding 100% in crypto. I wrote an article yesterday which talks about how I am diversifying. I have been paying off my debt in various ways with crypto for a few years now and eventhough I sold coins at $900 to get rid of my college debt, the peace of mind in many ways was worth it.
Even if bitcoin goes to 50k,or your other favorite crypto goes on a bull run, pulling out a bit and protecting yourself from a small possibility that it goes very low is something responsible people need to think about. For many people I see them playing with amounts that their neighbors dont make in a few years and it might not be because they know how hard it is to work for that amount. For people like me, we really only know adulthood as having money, so working a regular 9-5 and killing ourselves for a fraction of what we make when bitcoin goes up, doesnt register.
For a while now, I have been expecting some sort of correction, I dont know when, and I dont know at what point, but what I do know is I see many of the signs that “dumb money” is in the space and spreading itself around. I see people with no idea of what they are buying, purchasing random things in the hope that it goes up in value, ICOs that have no future raising tens of millions of dollars. I think the crypto space as a whole is in a bubble of sorts. Remember, when the dotcom bubble burst, it didnt destroy the good profitable companies, it really just cleared out the riff raff and I think well see a similar thing happen.
Even if it doesnt though, if you can cash out a small amount and still be ahead of other in life and not need to worry about it, do it. You dont need a massive house with a Lamborghini, live modestly and put yourself in the situation to prosper. If you are young, you have many more years of earning potential and ways to enjoy life, dont throw away all you have worked for in crypto. Put a bit in other time tested alternatives. I love crypto, but if you have enough of it, diversifying is a smart decision. Dont feel bad about pulling a small amount out because most times, the peace of mind is worth it.
-Calaber24p