In recent weeks we have seen the steady return of Bitcoin’s strength, with price over $8,000 on the 14th of May. Though less meteoric than its crazy push to $20,000 in 2017, Bitcoin’s consistent and steady upward momentum is encouraging for both investors and traders.
That is, if you still have Bitcoin…
What if you panic sold all your Bitcoin?
We saw extreme highs both monetarily and emotionally. You need only go back to the end of 2017 to see the hysteria in all corners of the media. Tulipmania seemed like a far away, ignorant event until Bitcoin rough housed its way to the forefront of widespread public interest.
And how did it end?
Well, it seemed to end rather pathetically. Bitcoin’s value steadily declined whilst industry experts touted confidence in various price levels. Pushing further down, that narrative was replaced with a sombre, defeatist attitude.
Bitcoin’s glory days were over, just like that. Tulipmania 2.0 followed in its predecessors footsteps and investments full of hope and riches went down with it. Panic selling from a huge influx of new investors drove Bitcoin into the ground, hitting as low as $3000.
There we saw Bitcoin stay in a stable range around the $5000 level and things got very very quiet. Trading bitcoin was not lucrative, simply because there was barely any movement. It wasn’t viable to take any trades.
Have you seen any mention of Bitcoin in mainstream media before these recent pushes?
Now Bitcoin is pushing upward once again and already you can see, feel, and smell the excitement starting up once more.
This is where things can get out of hand.
Investments require a long term mindset. If you react to every small piece of news, every dip in price, you will not succeed in your investments. This is why panic selling is the complete opposite of what your should be doing with Bitcoin.
The old adage of “When everyone is buying, you should be selling. When everyone is selling, you should be buying” hits the nail on the head with Bitcoin. If you bought Bitcoin at $15,000, that was not the best investment choice you could have done. You could have gotten lucky and sold at $19,000 and made a profit, but that won’t be the case for the majority of people.
Let’s say you bought Bitcoin at $5000 when it hit that level 2 years ago. You could have panic sold when price reached around the $4000 level a few months ago and cut your losses short.
Or you could have chosen not to panic sell and sat on your eggs.
All of a sudden, you now find yourself in the green again and close to double your initial investment.
If there is anything we have learnt from investing in Bitcoin, it is that you will make money if you are patient and not greedy.
Apply both of these and you will find yourself in a strong position. We know just by looking at the charts that Bitcoin has volatile moments, particularly when it breaks into mainstream media.
In all likelihood we will continue to see price fluctuations in the future. These will most likely be over a longer period of time than one week.
So the next time your brain starts to panic or worry about what you should do with Bitcoin, just give yourself a moment.
A moment to take stock of the situation. Assess the realities of Bitcoin’s fluctuations. Acknowledge the fact that cooler heads will prevail.
If you had a cool head, you will likely find yourself in the green right now. If you aren’t, don’t panic.
One thing we can be sure of is that no one is certain about where Bitcoin’s value is going to end up stabilising, or even when that will happen. Anyone saying otherwise is simply guessing in order to gain attention.
Play the Bitcoin game.
Buying and selling Bitcoin has gotten much easier and even cheaper than before. Coinbase is one example of an extremely easy way to buy and trade cryptocurrency.
You need only look at Bitcoin’s chart to see the swings and fluctuations. Compared to its monumental push these appear small. But a change in value of $1000 is big.
Both for investors and traders these fluctuations are exciting! For investors, it means your investment is (potentially) going up. As for traders, these movements mean you might actually be able to put in a trade.
It is something you can make money from. But you have to be smart.
Be patient. Don’t be greedy. Make your decisions in a calm and calculated way and you will see the profits come in. Use your trading plans!
So now that we see Bitcoin pushing up again, do you find yourself in the green or still in the red?
If you are calm and collected, you’ll either be in the green or be in a strong position to launch yourself into the green.
That is why you shouldn’t panic sell Bitcoin.