Most of us joined the cryptocurrency market with hopes of making money and changing our lives financially. However, the longer that you have been investing in the market, you will learn that there is a stigma against selling your crypto. Once you have fallen down the rabbit hole of crypto, you should believe that it is the future. That in the future you won’t even need to sell it. That it will be used and accepted everywhere, just like dollars are today.
If you sell your Bitcoin, Ethereum, and crypto now while we are still in the infancy of this market. The thought is that you are giving away your winning lottery ticket all because you didn’t have the patience to wait a few more years. Taking quick profits now to help a certain need, rather than taking full profits later on, and never needing to worry about money again.
Let’s talk about this more.
The first thing you need to understand is my own beliefs and biases around this topic. I have personally fallen deeply down the rabbit hole of Bitcoin and crypto, viewing it as the future. I have never sold any of my crypto for profits, and don’t intend on doing it anytime soon. For better or worse, I’m here for the long term. I have accepted my fate that I will either ride to extreme riches with Bitcoin or ride it all the way to zero.
Now back on topic. The most important thing you need to remember is that we are different, and have completely different financial situations. It is also important to remember that nothing is guaranteed in crypto. Tomorrow the price could go to zero, and we could go to zero.
Finally, we all entered this market to change our lives. The reality is that could mean a lot of things to different people. For some that might mean finally paying off debt or loans, moving into a nicer house, going to school, no longer living paycheck to paycheck, paying for an expensive medical treatment, saving toward retirement, or even actually being able to retire. Each of these things would be life-changing.
I’m of the full belief that if your portfolio has appreciated to a point that you can change your life for the better, you should absolutely take advantage of the opportunity. Before I began investing, I was in a horrible financial situation. Deep in debt, without much hope for the future. The weight that debt put on my shoulders was crushing. Using investments to pay off that debt would have been life-changing and improved my life drastically. If that is your situation, absolutely take advantage of it.
With that said, I do view this market as the future. If you don’t need the money and are invested in blue-chip coins such as Bitcoin or Ethereum. I would recommend HODLing as long as you possibly can. Generational wealth has the potential to be made.
How do you take profits?
If you decide to take profits, how do you go about it?
One of the most popular methods is to take out your initial investment. If you invest $500 into a coin, it does a 2x increase your value to $1,000. Then sell off your initial $500. You now have free money in the market. It no longer matters if it goes to zero. This will remove a lot of your stress in the market.
The other approach is selling everything. This would be recommended if you invested in a project you don’t believe in for the long term. While I don’t cash out to dollars, I will often trade a position into a different coin I prefer more.
There is no correct decision on whether to take profits or to HODL. You need to do what is best for your personal situation. Always remember the potential of this market, but also its risks.
How about you? Do you take profits or HODL?
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As always, thank you for reading!