When to sell BTC compared to your net worth?

[jerry0]

Okay so im sure many people here bought btc when the price were much lower and as of now, many probably sold some portion of their btc.  Now im sure there are ppl that still haven't sold any btc that they bought years ago but i got to assume that is rare right?  Then again, these are ppl with money in the bank to cover their expenses and thus don't need to sell right?



Since i read it seem like most people who sell their btc... its mainly because they need the cash to pay for expenses etc right?  Would most agree on this?  Thus that is main reason for most people compared to making profit?  I read lot of ppl mention how they are upset they sold their btc back then but they had to because of bills which seem to be the main reason and obviously that would mean they don't have money in the bank to cover those expenses.



But at what point do you sell btc compared to your net worth?  Like imagine you invested just 5 percent of your net worth of ten percent many years ago and after the btc price skyrocketed... its worth like 80 percent or 90% plus of your net worth.  At that point would it be stupid/silly to not sell some btc?  Like imagine someone who has 5 btc right now.  But they got it when it was very low.  But let say their net worth in their bank accounts and everything is in low 5 figures or even less.  But they are paying for their expenses with what they do to make money like working online but small income to cover expenes.  Let say this person also don't own any stocks or has retirement and let say this person just works online to make it simple.  



If this person has enough money to cover their daily expenses would it be silly to not sell even tiny percentage of their btc if they don't need to?  Like imagine someone with l0,000 dollars to their in their bank accounts and everything... let say they also rent and own no property, has no stocks or anything like that.   But basically make enough to cover their monthly expenses.



Would you say someone like that should sell some btc?  Like at least half of it to at least earn some profit from it?



Are there people who own btc and have their net worth and the amount of btc so disappropriate to btc?  Like in this example, having just l0,000 usd net worth in the bank/cash... but might have like a quarter of a million dollars in crypto?  This would be like 95% or so in crypto and the other 5% in cash in bank etc.  Are there cases like this and if so, it has to be extremely rare right?



I got to assume many people who earned money from btc got to have at least cashed out 5 or ten percent of their profits at least?  However... if someone has 5 btc bought at very low prices... but say their net worth in the bank/stocks etc... is like l00,000 or a quarter of a million or 500,000, then this situation is much different right?

[jerry0]

Also i heard people talk about how much percentage of your networth you shoudl invest in btc.  I mean right now with how much btc cost, its tough to even buy just one btc.  And obviously if you are able to buy one btc, that is a ton already.  But at what point do you cash out compared to your net worth?  Imagine someone with 500,000 to their name and buy one btc now... i mean that would be like 5% of their net worth in btc which is obviously not that risky at all.  But if btc goes to say 500k, and now their net worth is 500k cash/stocks/ and 500k btc, it would be foolish for that person to not sell some portion of that one btc right?



Then again, if that person doesn't need the money right now for living expenses if their net worth besides btc is 500k, it would be foolish to sell portion of their one btc right if prices would continue to go up?  Obviously this example is extreme because if it ever goes up to 500k, i mean i dont know how much more it can go up etc.



But what about the person who has say just 0.5 btc but their net worth is like 5k usd?  Assuming they could get by with paying living expenses... would that person be best to not sell any if they didn't need to?



I got to assume ppl who made money from btc... they probably sold enough btc where their net worth in anything other than crypto has to be around 50% or so?



So the big question is... should you sell any btc if you don't need to if you could cover your living expenses?  Obviously when you are low in cash in the bank, then you have to sell btc to pay for expenses.

[mk4]

Look, investing in general is really subjective. If you're a more convicted and passionate Bitcoiner then obviously bitcoin being a huge percentage of your net worth isn't really a problem. On the other hand if you're only holding bitcoin solely for the price appreciation then it probably might make sense to sell a bit to de-risk your portfolio.

In the end, every single one of us here are totally different people, with different views with Bitcoin, with different investing opinions in general, with different financial situations, with different spending habits, etc. So there's no one right way to do things. I'd say just hold enough bitcoin that you're comfortable with, and hold enough fiat to have enough money to survive if it's the case that bitcoin crashes.

[pooya87]

Now im sure there are ppl that still haven't sold any btc that they bought years ago but i got to assume that is rare right?

Not as rare as you'd think mainly because you don't have to "sell" your bitcoin to make profit. You can always "spend" your bitcoin.

Then again, these are ppl with money in the bank to cover their expenses and thus don't need to sell right?

When logical people invest what they can afford to lose then they don't have anything to worry about.

Since i read it seem like most people who sell their btc... its mainly because they need the cash to pay for expenses etc right?

I don't think so. In fact most people who sell bitcoin are usually panic sellers who are selling because they are told price is going to tank hard.

I read lot of ppl mention how they are upset they sold their btc back then

That is proving my point. These are people who panic sold not because of their bills. That would be absurd. It is so rare for someone to be so poor and have bitcoin and not be able to pay their bill so that they are forced to sell their bitcoins to do so!

Would you say someone like that should sell some btc?  Like at least half of it to at least earn some profit from it?

I won't say "should" but they can.

[Innerpumper]

I will sell when properly satisfied with the profit. Just wonder, when we sell them then we'll see them fly. I don't think net wealth should be included in bitcoin either because when it all comes down we will lose a lot of our pure wealth.

[ChrisPop]

I don't think net wealth should be included in bitcoin either because when it all comes down we will lose a lot of our pure wealth.

Bitcoin should be a included in a person's net wealth. It is like holding any other asset (precious metals, real estate, land are all assets). Bitcoin is a different asset class of course, but it is still an asset and can & should be included be in a person's or in a company's balance sheet.

What do you define as "pure wealth"? Fiat? - you must be joking...

[decodx]

The more the market goes up, the more people want in and the less they want to sell. It is difficult to decide when to sell as there are so many factors at play. I never sell more than I need to fulfill some of my assigned goals.

[OgNasty]

The more the market goes up, the more people want in and the less they want to sell. It is difficult to decide when to sell as there are so many factors at play. I never sell more than I need to fulfill some of my assigned goals.

That’s a good plan. I’ve found it’s usually better to be too late than too early when it comes to selling Bitcoin. Not by years or anything, but waiting a few months for the dust to settle after a big run will usually lead to realizing more gains when it comes to BTC.

[virtualdn]

You guys are all talking about cash out. If you really need those money (for important things not childish things) then cash out now else don't - why keep them in the bank so they can lose their value?

1 BTC will still be 1 BTC.

Easy peasy.

[maydna]

You can sell your bitcoin now or later, with the current price or lower or even higher price. Every time you need to sell your bitcoin, you can just sell it. I think people who have a lot of bitcoin will have their plan when to sell their bitcoin. In most countries, we still use fiat money, and if we have many bitcoin and the price is very expensive, you can sell your bitcoin to cover your expenses. Otherwise, you can sell some satoshi and hold the other fraction of bitcoin that you will sell on the other days. It is about the personal decision when they want to sell bitcoin, and they will not tell when they should sell bitcoin. But mostly, we sell bitcoin when we need fiat money to cover our daily needs.

[meanwords]

Would you say someone like that should sell some btc?  Like at least half of it to at least earn some profit from it?

It depends. There should always a reason why you are doing things, same with meddling with Bitcoin. I mean, why would you sell your Bitcoin if you don't really need the fiat? are you hoarding fiat or something? remember, inflation will always make your fiat less valuable so you're actually losing more money storing your fiat in a bank or somewhere like in your piggy bank or something than investing it in stocks, real estate, or Bitcoin.

Personally, I prefer the majority of my net worth circulating in different businesses, investments, crypto, than stuck in a bank.

[hatshepsut93]

It depends on your total networth. If you weren't doing very well, but now with Bitcoin increasing almost by 6 times in this bull run you are finding yourself "wealthy", then it's a signal that you should consider selling some BTC now or a bit later and reinvesting it in something more predictable. Because Bitcoin will very likely crash, and you will again return to were you started, or maybe will even have to sell some BTC down the road. Those who say to HODL no matter what are likely not having to worry about money at all because they have enough income to be rich even without BTC.

[blucepheus]

Would you say someone like that should sell some btc?  Like at least half of it to at least earn some profit from it?

It depends. There should always a reason why you are doing things, same with meddling with Bitcoin. I mean, why would you sell your Bitcoin if you don't really need the fiat? are you hoarding fiat or something? remember, inflation will always make your fiat less valuable so you're actually losing more money storing your fiat in a bank or somewhere like in your piggy bank or something than investing it in stocks, real estate, or Bitcoin.

Personally, I prefer the majority of my net worth circulating in different businesses, investments, crypto, than stuck in a bank.

+1

It really depends on if you need the fiat, and what you're going to do with it. I don't think there is any harm in converting some BTC to fiat for the purpose of investing in stocks, ETFs or real estate, but I would be wary of sitting on said fiat in a money market account where you are losing money to inflation.

All of that said, I'm very bullish on Bitcoin -- as are geniuses like Elon Musk and Cathie Wood, and many institutional investors. If you HODL, I think you will do quite well in the long-term.

[ninabobo]

I will sell when appropriately happy with the benefit. Simply pondering, when we sell them then we'll see them fly. I don't figure net abundance ought to be remembered for bitcoin either in light of the fact that when everything descends we will lose a ton of our unadulterated riches.