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
Great advice. I got in the game fairly early...January 2014, next month will be 4 years in the crypto world. I was thinking about starting to take some profits out slowly each week and throw some extra payments toward my mortgage. What's the point of profits if you never claim them, use them, or enjoy them? Thanks for the share
Exactly, plus as much as people dont want to admit it, there is a possibility crypto still fails, in many ways its still an experiment.
Yah you are very correct @ calaber24p.
Diversifying is the other of the day. You mighty not necessarily have to diversify to other cryptos, but you can also invest some of those crypto profit to things outside cryptos.
You know what is funny, I took only 4% of my liquid assets and spread it around the crypto markets... without doing anything except holding, they are now well over 100% of those original holdings.
That said, I still own gold and silver as my insurance...and my businesses as income producers.
But you are so right about taking profits and paying off debt if you have it as it leaches your very soul. Once those debt payments are gone, those can then be insurance, investment and hey even speculation.
Yeah debt, especially debt with high interest rates will kill you in the long run. Once you have no debt and a job, youll be amazed how much extra money you have.
This is a good post with some great advice! I don't currently have enough to make cashing out anything worthwhile, but I will remember this in the future!
I love this sir... Its quite cool and interesting. I just followed you to learn much from you
I appreciate your post. You have a lot of beautiful things that have appeared in front of you in front of us and have given us a post that does not really compare your knowledge to Bitcoin.
This is a good post with good advice.
And I'll be taking it.
Thanks.
That’s an intelligent advice you are telling there.
Sometimes the peace of mind is worth much more than the potential to have a higher ROI. Being healthy, in this case mentally healthy should be top 1 priority.
So original article 😉
Taking profits is completely acceptable! It really comes down to the risk/reward people choose to carry. There is no shame in cashing out some or even all.