As the price of Bitcoin and other cryptocurrencies approaches their previous all-time high price; it put me in a reflective state of mind. Sometimes, while investing in crypto, it can actually be very difficult to see your own progress. There are several reasons for this. Maybe you started investing during a bear market or even just a lull in the market. During this time, your crypto holdings increase, but your dollar value may not change or potentially even decrease. Many people can lose focus or patience during this time and decide to sell. Buy high and sell low. In reality, however, these are the best times to buy. You pull the coil more and more, you increase the tension and the pressure, and when things explode, your portfolio will see growth that may shock you.
For those of us who have been in the market for a while, we are now beginning to enjoy the fruits of our labor. That coil that we've been constantly investing in and putting more pressure on has finally jumped and moved in our favor. It's important to take a moment to marvel at the progress you've made. For many of us, investing in crypto has not only changed our lives financially, but perhaps even more importantly, it has changed our financial thinking and mindset. But now that prices are on the rise and can reach heights that just a few years ago most would have thought impossible. We need to think about what our personal future is in this market.
From our personal future in this market; I mean what are our next steps going to be. Will you be selling from the fiat market? You may start to recoup your crypto investment as it becomes harder to accumulate the amounts of coins you could in the past. Perhaps your confidence in the market has increased significantly and you will put even more money and focus into the market. There is no right answer and each person will have to do what is best for them.
But since I'm in a reflective mood, I think it's a good idea to think about what your original goal was when you started investing in Bitcoin, Ethereum, or any other cryptocurrency.
For the vast majority, I'd bet they entered the market to make money. I know I was the same way. This is the reason most people enter the market. But once they've invested, they have some skin in the game. Then they start going down the rabbit hole and then it happens, there's no going back. Many of these people will no longer be able to see the world in the same way as before.
I always find it fascinating to hear how people first entered the cryptocurrency market and thought it would be fun to hear from all of you as well. My story is like many of you out there. Years ago my brother got interested in Bitcoin. He came to me and wanted to share the exciting new technology he had discovered. He made me look at it and buy it. At the time, Bitcoin was still in the double digits. Naturally, I ignored it and thought it was a scam or just not interesting. But to be honest, I just had other things going on in my life and wasn't open to other investment opportunities that would take away from my current goal at the time. Time passed and he stopped trying to convince me to do bitcoins. As it turned out, I was going to move away from the US and live abroad. I quickly learned that sending money home was a must. It was slow and expensive. Then I thought of Bitcoin and started looking into it more. Yes, I initially started investing in it for remittance purposes, but I quickly fell down the rabbit hole and then everything changed. While I didn't get into Bitcoin during the double-digit sub-$100 days, I was still lucky enough to get in very early.
What about your cryptocurrency future?
For me personally, cryptocurrencies have taken over my life and become my mainstay. For this reason, I think it would be very difficult for me to ever sell out of my position. Instead, I'm actually increasing my focus and investment in Bitcoin and other cryptocurrencies even more. Trying to explore the market and all it has to offer. How to increase my passive income from crypto, setting up nodes or even running a lightning channel. Experiment with DeFi and explore NFTs as well. People who learn these simple skills or tasks now will be in a great position in the future. If I wanted money from my cryptocurrency earnings, I would most likely take out a loan using my cryptocurrency as collateral. This will allow me to keep my assets and also avoid huge crypto taxes.
But if selling will help you, there is absolutely nothing wrong with that. After all, we all probably entered this market to try to improve our lives in some way. If you are able to do that, I think selling is something you should definitely consider.