Bitcoin has faced challenges from policymakers and banks alike. This opposition has led to extreme volatility in the market.
If you've invested any money into the cryptocurrency, you've seen prices rise and fall dramatically over the past few years. This is nothing new for any emerging market, but you may wonder about the future.
If you're sitting on a Bitcoin investment, you might be curious about whether or not you should sell.
You've come to the right place. Below you'll find a guide to some of the things you should consider if you find yourself asking, "Should I sell my bitcoin?"
The Future of Banking
One of the biggest attractors to Bitcoin is the possibilities for banking. As it stands, banks operate as centralized institutions. Consider how banks work in comparison to cryptocurrencies like Bitcoin.
When you deposit money into a bank, the institution uses that money to make investments and generate revenue. For example, they make loans to businesses and individuals and make money off the interest.
Banks also make money from fees, such as overdraft and ATM fees. As thanks, they pay you a small amount of interest for banking with them.
For some, cryptocurrencies like Bitcoin offer a departure from traditional banking models. Bitcoin works differently from centralized banking.
Information is stored across countless computers across the world with a record-keeping technology known as blockchain. Each block in the blockchain holds key information about individual transactions.
Each computer in the network carries a copy of the entire blockchain, making it difficult to manipulate.
Your Own Investment Strategies
When you invested in Bitcoin, you might have thought you were buying into a get-rich-quick scheme. As time went on, you may have realized Bitcoin isn't immune to fluctuations in market prices.
Any corner of the market will fluctuate from time to time. We even see dramatic rises and falls across the stock market every few decades. These depressions rarely last more than a few years and the market soon recovers.
When you make investments, it's important to keep your long-term goals in mind. If you're wondering whether you should buy, sell, or hold your Bitcoin, consider the following:
- Have you made a reasonable profit thus far?
- Are you afraid of losing the initial money you invested in the cryptocurrency?
- Did you invest more than you could afford to lose?
- Are you looking to make money or be part of a financial revolution?
If you find yourself losing more money than you can afford, it may be time to give up some of your Bitcoin. However, you shouldn't sell all at once. Start out selling a portion of your investment and letting the rest grow.
For some, investing in Bitcoin was an attractive way to make money quickly? You shouldn't rely on short term gains in a volatile market. You could easily end up on the losing end of the bargain.
It's Best to Go Long
If you invest in Bitcoin, don't worry so much about downturns and dramatic falls in prices. Investment in Bitcoin and other cryptocurrencies isn't just about making money.
When you invest in Bitcoin, you're betting on a financial revolution of sorts. If more people join the revolution, it will gain more traction and validity.
The best thing you can do if you have an investment in Bitcoin is to sit back and relax. Enjoy a hot cup of tea and read your favourite publication. If Bitcoin takes off, you'll sit pretty in your hardwood chair.
If not, you should have the confidence you only invested what you could afford to lose.
Situations in Which You Might Sell
There are, of course, situations in which you might need to sell your Bitcoin. Financial struggles come for us all at one time or another. Any investments you might have might be one of the first places you go if you're strapped for cash.
That is not to say you should think of your investments as a savings account. It's just a reality of life. You may need to pay your mortgage or come across a medical emergency.
These are real-life dilemmas that could force you to liquidate your assets. In such cases, try to keep as much Bitcoin as you can. Sell only what you need and try to remain invested in the market.
Should I Sell My Bitcoin?
In recent times, you may have noticed sharp downturns in the value of Bitcoin. Still, the value of this cryptocurrency is still up dramatically from where it began. If you find yourself asking this question, keep in mind your freedom to make choices.
Don't take anyone's word as gospel. Do your own research and use your own senses before you make decisions based on the thoughts and ideas of Joe down the road.
Many of the big players in the Bitcoin industry believe Bitcoin could be the end of money, at least as we know it.
If cryptocurrencies take off, it could usurp power over traditional banking systems. It could take control out of the hands of those individuals who want to milk you for all you're worth.
Some people believe money is the root of all evil, giving rise to organized crime and even murder. These same people propose Bitcoin and other cryptocurrencies could put an end to this toxic way of life.
Should I Hop on This Train?
You may have missed the early days when Bitcoin cost next of nothing to buy. However, that doesn't mean the future could hold a strong future for the cryptocurrency.
If you want to get behind a financial revolution, you might consider investing now. That isn't the question you came here for though.
Should I sell my Bitcoin?
Do your market research and make a decision for yourself. It may be best to hold onto your Bitcoin and wait to see if the prices rise again. The future is unknown.
If you want to learn more, Cryptoversity offers online courses in crypto trading. Check out our curriculum today.
Remember that nothing in this article, in our courses or on our website should be considered as professional advice. We are not qualified to offer advice, we only provide education.