Bitcoin HODLing isn't for the faint of heart. There's no way around it. Prices are in the red one minute and then spike the next, breaking known resistance zones and setting fresh all-time highs.
If you were one of the few lucky people who got on the Bitcoin train early, there's one question on your mind: should I sell my Bitcoin?
Please put your emotions aside!
It's important to hold emotions at bay before delving into the world of trading Bitcoin. After a bloodbath that shatters every support level in sight, most people are tempted to sell. So, when making a decision like whether or not to sell my Bitcoin, keep emotions at bay.
Being level-headed when making a critical decision like "Should I sell my Bitcoin?" has helped me prevent losses I would have later regretted.
When purchasing Bitcoin or any other cryptocurrency, there is a golden rule to follow: ‘never gamble more money than you are willing to lose.'
Is this to say that purchasing cryptocurrency is a waste of money? Not at all. The reality is that the crypto industry is still in its early stages, with insufficient fundamental technological research metrics to provide a reliable future outlook. The majority of Bitcoin transactions are speculative in nature.
Pros and Cons of Selling Bitcoin
The major advantage of selling Bitcoin, particularly if you purchased it at a low price, is the high return on investment.
When it comes to Bitcoin, numbers don't lie. BTC's price was about $1 when it first entered the market in 2011. During the bull market of 2017, it reached highs of nearly $20,000. Someone would have made a tidy profit if they had sold their Bitcoin at that stage.
Another advantage of selling Bitcoin is that it eliminates the never-ending fear that comes with owning it. It's difficult to keep up with Bitcoin's uncertainty. Many factors influence the price of Bitcoin, including whale moves that you might or may not be able to influence. As a result, you'll always wonder, "Should I sell my Bitcoin now?" for these reasons alone.
You'll be constantly wondering if each new all-time high set is the bull market's ceiling. What is the price of Bitcoin going to be in the future? Obviously, if you've exited the Bitcoin market, you won't be as concerned as someone whose funds are fluctuating in a Bitcoin exchange.
There are some disadvantages to trading Bitcoin. The most important is that it is being sold too fast. You can sell your BTC and the price will rise in a short period of time. Isn't it sad?
Finding the best exchange to sell your Bitcoin is the other disadvantage. With over 504 cryptocurrency exchanges to choose from, you can be unsure which one is the best to use. When it comes to choosing an exchange, security, fees, and liquidity all play a role.
Why Should You Sell Bitcoin?
As a crypto enthusiast, you could be tempted to sell your Bitcoin for a variety of reasons. The majority of the reasons revolve around the concept of risk.
Regulatory danger
When it comes to Bitcoin and other cryptocurrencies, almost every country lacks specific rules. Although some countries have become tax-free Bitcoin havens, the majority have issued warnings to their people about cryptocurrency trading. There's also the question of whether or not Bitcoin transactions are taxed. To summarize, Bitcoin poses a significant regulatory danger.
Risks of Mass Psychology
When it comes to investing, Warren Buffet has always said that you should sell when everyone else is buying and buy when everyone else is selling. When do I sell my Bitcoin in light of this? When you see a lot of people buying something, it may be a sign of FOMO (Fear of Missing Out).
Invest in other altcoins to broaden your horizons.
Aside from Bitcoin, there are a slew of other cryptocurrencies with a ton of promise. For example, the Ethereum price forecast appears promising, and it wouldn't hurt to invest some money in it. Ripple (XRP), Dogecoin (DOGE), and Binance Coin (BNB) are some of the other altcoins that look promising.
Why You Should Hodl Your Bitcoin?
There are a variety of reasons why the answer to the issue of whether or not I can sell my Bitcoin is a resounding no. To begin with, the price of Bitcoin has always risen and fallen. History demonstrates that after a Bitcoin halving case, its price rises to new highs as the availability of circulating Bitcoins decreases.
Second, the number of institutional investors purchasing Bitcoin is increasing. These large corporations and international financial institutions have no plans to sell Bitcoin in the near future. Furthermore, their entrance into the Bitcoin scene indicates that they have done thorough analysis and determined that it is a worthwhile investment.
Let's not forget about Bitcoin's deflationary existence. Inflation, especially of the US dollar, is unavoidable as a result of the global pandemic. Since Bitcoin and other cryptocurrencies are decentralized and do not depend on a central bank, their decentralized existence may be exactly what the world requires to protect itself from inflation.
Conclusion
Bitcoin has received a lot of criticism over the years, with many calling it a bubble and predicting that the price will eventually drop to zero. Bitcoin, on the other hand, has continued to grow and establish itself as a valuable commodity to own in the financial market.
So, what's the verdict on the burning issue of whether or not I can sell my Bitcoin? That is debatable. If you're selling to buy into the dip, you'll be able to sell some of your coins and you'll be able to buy more at a cheaper price. If you're selling Bitcoin because you think it's a bubble, do some further digging and look at the fundamentals. You might be getting rid of an asset that will be worth a lot of money in the future. HODLING is the way to go when it comes to Bitcoin. Anyone who purchased Bitcoin at the beginning will attest to this.