Selling Bitcoin: Understanding the Decision

I first got into Bitcoin back in 2017, despite struggling to wrap my head around the whole cryptocurrency thing. Instead of missing out, I decided to buy in. The ups and downs were a wild ride, especially during that crazy run-up to $20,000. But then came the crash, followed by a whole crypto winter.

Fast forward to the spring of 2021, when Coinbase went public, and the boom seemed to fizzle out. There were some tough times in between, including the Sam Bankman Fried incident that led to another big crash.

Initially, I thought of Bitcoin as a buy-and-hold investment, like digital gold. But as it grew to a whopping 10% of my portfolio, I realized it was time to rebalance. Bringing it back down to a more sensible 5% seemed like the right move. Regular rebalancing is crucial, especially with such a volatile asset.

While I started out small with Bitcoin when it was around $4,000, my position is now up about 5-6 times. With more money at stake, the thought of another massive crash is a bit daunting. Plus, historical data shows that Bitcoin has had some pretty epic drops in the past.

So, I made a plan to sell off some of my position when Bitcoin hit close to $100,000 and set another limit order for $110,000. Sure, it’s a bit of a gamble, but I’m trying to minimize any potential regrets. No one likes the feeling of missing out on gains or watching their investment tank.

Despite selling off some of my Bitcoin, I’m keeping half of my position for the long haul. The resilience of crypto over the years has been impressive, and I wouldn’t be surprised if it bounces back from any future crashes.

Investing is all about minimizing regrets, so I’m staying strategic with my decisions and staying open to whatever comes next in the world of Bitcoin.