When to Sell Bitcoin
To HODL or Not to HODL
(Originally published October 23, 2020, on Coin Cloud)
“Should I HODL or SELL?” I asked myself when Bitcoin soared over $13,000 earlier this week.
Going by the age-old adage to “buy low, sell high,” in theory it would have been a good time to sell. After all, when I bought some Bitcoin it was closer to $9,000, so that’s a 40% increase. On a whole bitcoin, it’s a $4,000 profit. Not too shabby, right?
But I chose to “hodl.” Why?
(And what the heck is hodling, anyhow?)
If you’re not familiar with the term, “hodl” is crypto-speak for “hold.” In a nutshell, one time in 2013 this guy mistyped “hold” in the BitcoinTalk forum, saying that he was hodling his bitcoin against all odds because he wasn’t very good at trading. Specifically, he typed “I AM HODLING.” The term stuck, and now it just means to hold your bitcoin, even when others are selling.
Why I Chose to HODL
So, by that token, a “good” day trader probably would have sold and then reinvested the profit. But I didn’t.
Here are 5 reasons why I AM HODLING:
- I’m not a day trader.
- The profit wasn’t enough to make it worth my while.
- If it keeps rising, I could make more.
- I never invest more than I can afford to lose, so it doesn’t matter if it goes down.
- Over time, the price of bitcoin tends to go up.
When to Sell Bitcoin
So then, when do you sell cryptocurrency? Well, there are certainly times when you could choose to sell your bitcoin, and this is going to depend on your personal plans and goals.
Here are 5 reasons to sell your Bitcoin:
- The current price is higher than you paid.
- You want to day trade and profit from daily volatility.
- You need (or want) the money for something else.
- You invested too much and are afraid to lose it.
- You don’t think the price is going up any more.
Ultimately, only you can choose how to manage your own money. You can seek advice from friends, family or professionals, but the decision is ultimately yours. Don’t ever feel bad about selling … or hodling.
Disclaimer: The information and views supplied by Coin Cloud are for educational and entertainment purposes only. We are not financial advisors, so please do your research and consult with a trusted financial specialist before investing your money.
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