Very soon there will be a point during this run and perhaps some people have already reached it; where they have made gigantic profits in cryptocurrency. For a lot of people; it will be an amount of money they never dreamed of achieving. It will be a life-changing amount of money for them. Now life changing is a very broad term that can mean a wide range of things to any person. For one person, you can finally give them enough money to hide and save and make each day less stressful. Having money just in case can solve a lot of stress. For others it may be finally paying off their credit card debt, something that can be really crippling. For others it may be buying something they've wanted for years, like a new car, or putting a down payment on a new house. And of course for some, these life-changing gains may be enough to retire from their own job, start their own company, or just live the easy life. Everyone is walking towards their own goal and that's why many of us are in the cryptocurrency market. Of course, there are those of us who have "seen the light" with bitcoin and other cryptocurrencies who believe in it so much that we never plan to sell.
The point of this article is that the cryptocurrency market is moving incredibly fast and you should have already decided which outcome you are going to achieve. If you try to decide on a momentum right now, chances are you won't be able to make a decision, or maybe you'll make a decision you'll regret over time. Maybe you'll see the price of the cryptocurrency go up and say "just a little more and then I'll finally sell". The problem with this is that people who haven't fully thought through their plans often don't stick to them or get very greedy. They'll say just a little more and then the price starts to drop. As prices fall, they will think "it's definitely going up". But it hasn't and instead the price has fallen deeper. Sometimes these people will panic and then sell once prices drop in earnest. These people often regret over time how much money they missed out on. Now you might be wondering "wouldn't a person who makes a plan and sells at their target price, even when the price goes up even more, regret doing the same?"
And I would say that is a very pertinent question. But then you have to remember that those people who sell for their goals are selling for life-changing goals. If someone is able to use the profits from cryptocurrency to be able to eliminate all their debt and get their life back on track, I think most of us would urge them to sell or at the very least agree that it's a great venture for them . If someone was able to sell and buy their dream house or start their own dream business. Again I think we would all urge them to go ahead with it. I think sometimes we all fall into the HODLER trap. We have all preached and been preached to about the importance of HOLDING on to your cryptocurrency as long as possible. This selling in the short term would be a very foolish thing to do. And to a certain extent, I still agree with that philosophy. After all, I think bitcoin and ethereum are pristine assets that everyone should strive to own. These are assets that people will only be able to dream of owning in the near future, and if you don't sell them, you'll be able to profit from them by lending them out for profit or using them as collateral to get loans. That way you won't have to sell. Not even to mention the insane price hoarding that I believe we will see very soon. We all don't want to be the people who sold Amazon stock during the dot com bubble, or the guy who paid for 2 pizzas with thousands of bitcoins. We have been taught that if we HODL, the value will increase and we will be rewarded for it. Always remember this key point. If you denominate your value in dollars or other fiat money, you haven t made a profit until you sell your cryptocurrency back in cash. The profits you have right now are only paper profits.
This may seem like a bearish stance, especially coming from me. Someone who is one of the most tuned in people out there. The reason I say this is because I don't want people to miss out on amazing life changing opportunities just because they might be able to get more in the future. Remember, these future prices are not guaranteed. Just imagine the regrets that a person with financial difficulties would experience if they were finally about to get ahead because they made gigantic gains on cryptocurrency, only to hold out too long and not sell. I know this will haunt me for a long time.
Now with that said; here is my plan. It may sound hypocritical based on my article, but I'm the kind of person who will probably never sell. This is the life of a HODLER for me! But there's a chance I could be wrong with how tuned into crypto I am and the world could be moving in a different direction. Remember, what's right for me may not be right for you. Now, just because I don't plan on selling my cryptocurrency, that doesn't mean I'll never be able to profit from the gains I make. Since I'm so set, I'm currently accumulating as much as possible by buying locally, giving crypto for interest, and gambling. In the future I may take some of the passive crypto income and HODL it and also sell some of it. But the option that would be more likely for me would be to use my crypto as collateral and borrow against it. That would save me from having to pay capital gains tax. I'm also the kind of person who believes in the future of bitcoin and cryptocurrency. I don't think there will be a "need" to sell bitcoins. Just like the famous bitcoin matrix meme, we will be able to use bitcoin for everything and we will be able to use it just like you use money today.
The main point of this article is that you really need to decide what you are trying to achieve. Write that goal down on paper and write down how much money you will need for it. Maybe then you could include a target selling price. If you're a HODLER, maybe there's a certain goal number you're aiming for, or accumulating a certain amount of passive income from cryptocurrency each month. Whatever your goal is, figure it out now and you'll have a much better chance of achieving it.
What about you? What are you trying to achieve with your cryptocurrency? With prices continuing, will you sell or continue to HODL?