Reinvest initial investment, or keep profits?

[johant123]

Hi all,

In the past weeks, I have sold some BTC, and I have my initial investment (about $5000) out. Which means that everything I have in BTC now (about $8000) is "free". That is fine, but I am thinking about what to do with the money I took out:

• Put it in a less volatile investment, as a long term safeguard
• Reinvest it in BTC as soon as the price drops (it eventually will, but when?)

In the first case, I have secured my initial investment in the long term, so I won't need to worry about it, but it also won't make much more for me.

In the second case, the potential for gains is much higher, but I still risk losing my initial investment. I don't need the money now, but I would feel sorry about it.

I plan on keeping what I have left in BTC for the long term. My question is purely about the initial investment that I took out again.

What's your opinion? Thanks!

[The Cryptovator]

Good to hear you gained profit from bitcoin and increase your portfolio. Reinvesting your initial capital would increase your portfolio once again. But remember, you wouldn't be lucky always. There is a possibility of losing your capital as well. Since you don't need your money right now, you can invest it somewhere. Doesn't necessary to invest again in Bitcoin. My suggestion is, you would take out your initial investment from crypto and invest it in real life. And you could reinvest your profits in Bitcoin whatever you gained. Of course, buy-in dip according to you. So, if in case of Bitcoin drop unexpectedly, then would will not be panic and hold for longer. Because you already invest your capital in real-life investments. Panic sell is a huge problem in the crypto industry. Now you don't need money, but who knows about tomorrow. So your real-life investment would be helpful during a bad situation in case happen it.

[pooya87]

I'm a big fan of diversification so I suggest investing in something else, something such as the traditional assets that have less volatility and only if you are familiar with what you do or can gain the knowledge before making the investment.

I'm also a big fan of bitcoin and believe in its future in long run so I would never pull out of bitcoin entirely, even when selling I have never sold all my balance, only a small amount to take the profit out. So I also suggest having bitcoin.

The amount you put back in really depends on your own risk management and how much money you want to dedicate to different assets you own.

[masterrex]

I think it's better to wait some time for the Bitcoin price to cool down a little bit and re-invest your money again because you are here already in the crypto industry so dont just remain idle grab the opportunity to earn more but be cautions because as you said crypto is a volatile investment so you must be aware of it. by the way congrats on your gain.

[Maus0728]

Personally though, I would re-invest that initial capital using Dollar Cost Averaging or maybe have it ready when a smaller dip is present in the market.Also, it would be much better if you can re-invest your capital at a similar price back when you first bought a fraction of your bitcoin although it's unlikely to happen.

However, it is not also a bad idea to re-invest your capital if you have another traditional investment in mind (e.g., real estate, mutual funds, stocks) assuming that you have an emergency fund ready on both cases and has an ample knowledge to that specific investment.

[Smartprofit]

Hi all,

In the past weeks, I have sold some BTC, and I have my initial investment (about $5000) out. Which means that everything I have in BTC now (about $8000) is "free". That is fine, but I am thinking about what to do with the money I took out:

• Put it in a less volatile investment, as a long term safeguard
• Reinvest it in BTC as soon as the price drops (it eventually will, but when?)

In the first case, I have secured my initial investment in the long term, so I won't need to worry about it, but it also won't make much more for me.

In the second case, the potential for gains is much higher, but I still risk losing my initial investment. I don't need the money now, but I would feel sorry about it.

I plan on keeping what I have left in BTC for the long term. My question is purely about the initial investment that I took out again.

What's your opinion? Thanks!

In my opinion, bitcoin should not be viewed as a speculative asset. 

There is no point in selling Bitcoin for fiat currency because Bitcoin is real money.  The global financial system is currently undergoing a transformation.  Central banks will create their own currency (CBDC). 

What is the fate of modern fiat currencies?  Given the huge external debt of many countries, fiat currencies can quickly depreciate.  In this situation, replacing bitcoins (a deflationary asset) with fiat currencies (an inflationary asset) is the wrong choice. 

Gold, land, real estate and Bitcoin are the assets that can be recommended for purchase.  That being said, in my opinion, Bitcoin is the most undervalued asset of these four assets.

[xcaret]

As my gambling friend tells me you pocket your initial stake if you win that much, then after that you are playing with the house money.
I bought gold 1 ounce coins in 2018 I think it was ,at $!6,50 Canadian an ounce, today they are selling at $2440 .
Nothing like if I had bought bit coin, but I can touch my gold, and it too bounces up and down. I bought it for a minimum ten year investment .
I'm planning to repurchase some part of a bit coin if the market falls below a number I have in mind ,.
 

[Porfirii]

I agree with most of the answer above. Just one tip, because maybe this is your case.

Members here tend to talk about investing, maximizing gains, deflationary vs. inflationary, staking... but we usually forget about debt. If you have mortgage, or you are planning to get a loan for something important in the short term, it would be interesting to think about using those $5.000 in order to avoid the trap. Because, to me, it is as important for financial freedom minimizing debt as maximizing gains.

Just the other side of the coin

[irixo10]

It is nice you made good profits, but you should know the market won't always work the way we think, it might take time to get a good profit again or it might be sooner than later, it all depends on the nature of the market. Talking about less volatile investment means investing offline, or rather in a business etc, because in the crypto space there is nothing like less volatile investment, the entire crypto space is highly volatile, therefore if you have a good idea about the investment you want to go into, then proceed to it, the profit you can also use to buy and hold Bitcoin, in this way you will still be relaxed. On the other hand, buying Bitcoin for long term, means you will have to wait it out if you later buys and it later dumps, so if you are ready for long term holding the option 2 is still okay. But left for me, if the business idea is a good one, which you can manage appropriately, then invest in it, when you get the profit, take a certain amount and buy Bitcoin for long term holding.

[Question123]

Your choice if you are going to sell your bitcoin and keep the profit or you gonna invest more again to the bitcoin. You will need know first the consequences once you are going to reinvest to the bitcoin maybe you will lost money if the price dump or maybe it will rise the price you gain money. But if you want to keep the profit and not invest again maybe you lost profit or you should right to not to invest that is the thing that you need to consider.

[aoluain]

When you bought your first Bitcoin with your $5000 what was your
mindset? at that point could you have afforded to lose it?

if the answer is yes, then why did you liquidate it back to FIAT?
you now will have 62% less growth when Bitcoin's value increases.

I understand the benefits of diversification but with $5000 there
aren't many markets you can move into, maybe Gold.

Max Keiser predicts Gold to go to $3000 for 2021

At a time when a lot of big investors are looking at Bitcoin,
I would be looking in the same direction.

[dimonstration]

Reinvest if you plan to do trading or plans to be updated in monitoring the market so you'll know when you gained profit. It's always good to buyback especially if your last withdrawal is already in profit. The recent pump teach me to sell some but to still keep more since there are many companies that might join the hype sooner.

[ene1980]

I plan on keeping what I have left in BTC for the long term. My question is purely about the initial investment that I took out again.

If you think that the market will rally further you can ride the market and book your profit once you identify that the market is going for a huge sell off, it is a bit risky but it is possible but then it begs the question why you booked your profit so early. The best option is to wait for the major correction in bitcoin and then invest once again or find another investment market rather than keeping it idle.

[cryptoaddictchie]

If you can wait for a price bargain for Bitcoin then wait. But if you want to explore new cryptocurrency that has potential to do some major pump you can spread those $800 with it. But take note that altcoins are quite risky. So better to reinvest it on bitcoin if you are a conservative trader or investors. It depends on your appetite actually for risk. The higher the risk the higher the gain and so loss vice versa.

[Fundamentals Of]

Do you have any other savings except those which you invested into Bitcoin? If none, keep that to yourself. If there is, you may invest it into Bitcoin as well.

But I take your doubt as a hint that you are thinking twice of going all in or not. If you are worried that your initial investment will lose value in case Bitcoin will take a plunge, then you better not invest it at all.

But to somehow settle it in a fair manner, invest half of that into Bitcoin once the price is hitting your target and keep to yourself the other half. There'd be no regrets that way whatever direction Bitcoin's price would take next.

[hd49728]

Reinvest it in BTC as soon as the price drops (it eventually will, but when?)

My advice for you is: Split your money after taking profit into 2 part: part 1 is for the initial capital that you should keep in fiat. Part 2 is the profit you get so far. You can reinvest by the part 2. In bad investment, you will not lose your capital, and only lose all your profits or have left money from your profit if the reinvestment get a loss of 50%, 80% or 90%.

It gives you a safe reinvestment. If you are right, and get luck, you can earn more profit. If not, you will still have your initial capital to use.

[ChrisPop]

First I think you need to set your priorities straight. What point in your life are you in now and what is your risk tolerance? Do you aspire to make a significant contribution to the world or just get by? Depending on your answer you can come up with a portfolio allocation.

It is very hard to give an opinion on a financial situation where you don't know all the factors. I mean.. do you have a job or other income streams that feed you cash flow every month?

[Sterbens]

free profit with $ 8000 is a very fantastic achievement and you deserve to enjoy it right now. then over time you will recover the potential to save your initial funds at a hefty price, in the long term it will not make you lose in the future because the price will definitely exceed the current price, but the timing is not certain. moreover a major correction is being planned.

[pragna]

Hi all,

In the past weeks, I have sold some BTC, and I have my initial investment (about $5000) out. Which means that everything I have in BTC now (about $8000) is "free". That is fine, but I am thinking about what to do with the money I took out:

• Put it in a less volatile investment, as a long term safeguard
• Reinvest it in BTC as soon as the price drops (it eventually will, but when?)

In the first case, I have secured my initial investment in the long term, so I won't need to worry about it, but it also won't make much more for me.

In the second case, the potential for gains is much higher, but I still risk losing my initial investment. I don't need the money now, but I would feel sorry about it.

I plan on keeping what I have left in BTC for the long term. My question is purely about the initial investment that I took out again.

What's your opinion? Thanks!

Right time right decision to gain initial and think you are good trader. At present time i think market will be correction for establish so you should wait for some while or you can reinvest another small coin like DOT, ADA, Link where there price is very low now and think very recently these token price will be high. On the other hand risk free investment also. So you can take a chance here.

[Rehan Zakir]

Reinvesting is also a good technique to increase your initial investment. It is also a very profitable technique. Big investment= big profit
But it also a big loss as well. But I think we should categorize our profit. Some ratio of it must be reinvested in order to gain more profit. Some ratio of profit take out of it and some of it for reinvesting.