I was recently a guest on the Mr. M, where host Maurizio (Mr. M) and I discuss many of the realities of Bitcoin investing that are often not discussed with nuance.
For context, Maurizio invited me to the show because he wanted to discuss an article I wrote last week called “Don’t Buy the Bitcoin Dip,” in which I shared that we have already been in a Bitcoin bull market for over two years and now is likely not the best time to make large Bitcoin purchases. (Please note that, in the article, I did not encourage anyone to sell their Bitcoin, nor did I suggest they stop dollar cost averaging in the asset.)
We have discussed this article and also touched on some other dynamics associated with investing in Bitcoin that are not often brought up. So, I decided to share some points from the conversation here as a teaser for the episode.
When investing in Bitcoin, you can:
- Sell some if you need some cash, and it’s best to do so while the price of Bitcoin is high
- Don’t use all of Bitcoin; Having a cash supply can be psychologically beneficial, as Bitcoin is a volatile asset
- Consider the timing when making larger Bitcoin purchases; Bitcoin price goes through boom and bust cycles, and it is best to buy during bear markets
I share these points because often times, the loudest voices in the Bitcoin space broadcast messages like “buy the dip” or “never sell!” (My favorite example of this is the What Bitcoin Did episode titled “Buy a fucking dip“Which was published near the top of the 2021 bull market), prompting those who are new to the space or who might benefit from selling or spending some Bitcoin during the bull market not to do so.
If I had not sold some Bitcoin during the latter part of the previous uptrend, I would not have had the cash reserve that made it easier for me to quit my previous job, which was making me miserable, so I could breathe financially. Room while looking for work in Bitcoin. Now I write articles for Bitcoin Magazine to earn a living because I sold some of my bitcoin.
So, please understand that Bitcoin is a tool that can be used in many different ways. Examine your life circumstances, and think for yourself when it comes to how you use your Bitcoin. Don’t just listen to religious HODLers who may make you feel like you’re less of a Bitcoiner for doing what’s best for you.
This article is a takes. The opinions expressed are entirely those of the author and do not necessarily reflect the opinions of BTC Inc or Bitcoin Magazine.
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