When to Sell Bitcoin (2024)?

Bitcoin is approaching an all-time high, and many investors are in profit, thinking about selling. So, if you’re one of them, today’s post is for you.

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 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 fundamental value, and the price matters only at 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!

Good reasons to sell Bitcoin

Bad reasons to sell Bitcoin

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.

Are you “in profit”? It’s ok to stay there.

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 Deltabadger, of course. However, no matter what it will be, here is the huge benefit:

When you experience purchasing stuff by paying with Bitcoin yourself, you’ll get a much better understanding of its value and the conviction necessary to stay tight during market swings. “Who is using it? Me!”

Read about how to build a portfolio for FIRE →

FAQ

Q: How long should I keep my Bitcoin before selling?

If you’re a US taxpayer, holding Bitcoin for over a year before selling can qualify your gains for lower long-term capital gains tax rates. Additionally, long-term holding aligns with Bitcoin’s historical growth patterns, giving your investment more time to appreciate.

Q: Will crypto ever recover? Should I sell it for a loss?

Most cryptocurrencies never recover. Period. If you’ve bought a bunch of “small caps,” the next best move might be to cut your losses. But instead of cashing out to USD or EUR, consider converting everything to Bitcoin. With Bitcoin, you’re betting on the safest crypto that still grows faster than most popular ETFs and has a proven track record of resilience.

Q: What percentage of Bitcoin should I sell?

The smartest strategy for selling Bitcoin is portfolio rebalancing. Decide what percentage of your portfolio Bitcoin should represent. If Bitcoin’s price rises, sell some to restore balance and redistribute gains to other assets. This approach removes emotions, lets you lock in profits, and maintains your desired allocation. Similarly, if Bitcoin’s price falls, sell other assets to replenish your Bitcoin holdings. Rebalancing is a natural extension of dollar-cost averaging.

Q: Is it worth investing $500 in Bitcoin?

Don’t fall into the “I don’t have enough to invest” mindset. Starting small is better than not starting at all. Even $500 invested today can make a difference in five years. Bitcoin allows everyone, regardless of their starting point, to build wealth over time, provided they start and stay consistent.

Q: Should I sell Bitcoin to pay off debt?

Paying off debt is one of the most legitimate reasons to sell Bitcoin. Holding Bitcoin while carrying debt is effectively margin trading. Keep your life simple and your sleep sound—life’s too short to stress over debt. Eliminating debt also provides a stronger foundation for future investing.

Q: When should you get out of Bitcoin?

If you’re thinking, “When should I get out of Bitcoin?” you might want to reconsider buying it in the first place. This mindset often leads to selling at the worst possible times. Bitcoin is a long-term value asset—buy it only if you’re committed to holding it as part of a diversified portfolio. Short-term thinking usually leads to regret when it comes to Bitcoin.

Q: Is Bitcoin still worth holding?

Yes, absolutely. Don’t fall into the trap of thinking “it’s too late.” That mindset applies to pump-and-dump schemes, not to Bitcoin. With a proven history of resilience and adoption, Bitcoin remains a valuable long-term asset worth holding. The best time to invest was years ago; the second best time is today.

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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investing involves risks, including the possible loss of principal. Always conduct your own research before making investment decisions.