I don't speculate with my home!
Bitcoin at an all-time high means that most Deltabadger users are in profit, and many start thinking about selling. So, today’s blogpost is about selling:
Investing is an endeavor that requires discipline, and emotions, which we all have in abundance, are in your way. Your success depends on how well you can handle them. But there is a way. All emotions come from stories that show up in our heads, so having a good story about your investment plan is crucial. Here is the story, a mental framework, that I find very useful when thinking about Bitcoin:
Bitcoin is a digital real estate.
Think about it — like land or apartments in a city center, Bitcoin is finite, while more and more people want some. That’s the reason why the prices are going up. Many people invest in real estate, but when the price of your house is going up, you don’t think immediately about selling it, right? And when the market crashes, you don’t panic sell either! You know that in the long term, it has a fundamental value, and the price matters only in the moment of an actual sale, not on a daily basis.
Adapt this framework for Bitcoin, and it will help you navigate its market. This is how I think: Bitcoin is my real estate. I don’t speculate with my home!
Are there any good reasons to sell? Sure, anything that makes your life better:
- paying back your mortgage or buying a home
- investing in your business (that’s what I did)
- buying groceries when you don’t have any other money
- expensive medical procedure
- buying your dream car? if it doesn’t jeopardize your financial future, why not?
What are the bad reasons?
- selling to buy back later
- selling because you think it’s the top
- selling to “take profits” without actually needing money
Most people who have some real estate would agree that those are not good reasons to sell it. Think about Bitcoin the same way, every time selling it crosses your mind.
For some of you, it may be a new feeling to be in profit, but for a long-term investor, this is actually a very comfortable place to be. When new investors start FOMO-ing, you have a good average price, so you can relax.
I advise you to move your coins to your hardware wallet so there is less temptation to make impulsive moves on the market. The long-term outlook is very good: ETFs and halving definitely help, but your true goal should be to hold your investment for more than just one halving! This is the long-term investment horizon that makes fortunes.
My mission at Deltabadger has always been to help people build personal capital, and I believe that Bitcoin is one of the best vehicles for achieving this goal. You were dollar-cost averaging for a long time. Now, don’t interrupt, and let Bitcoin do the work!
Finally, if you want to celebrate your investment a little bit, buy something that you can pay for with Bitcoin. Need an idea? A lifetime subscription to Deltabager, of course. However, no matter what it will be, here is the huge benefit:
When you experience purchasing stuff paying with Bitcoin yourself, you’ll get a much better understanding of its value and conviction necessary to stay tight during market swings. “Who is using it? Me!”
(If you missed the previous newsletter, we’ll soon talk more about managing your assets long-term.)