Within reason, I personally don't mind the idea of overly investing into bitcoin, but each of us needs to try to make sure that we have our emergency funds covered and our cashflow, so that we do not get into a financial and/or psychological pickle because we had been overly investing into BTC.
I guess this is something most of don't get, invest what you know you can afford while still being able to live your life the way you live. Bitcoin investment is not ponzi schemes that would crash, so you don't need to panic buy or sell but no body should still be having this mentality,
It's been a year since the FTX crash the term
bitcoin is doom is over but
bitcoin is still bitcoin with this and the previous challenges bitcoin will rise above all and soon people will see no need for CEX because bitcoin has overcome all the challenges CEX to the crypto world and so opt for DEX and non custodian wallet and it will be bitcoin or bitcoin investment.
Sometimes the biggest issues is during the bull run, though your plan was to HODL for 2 years and suddenly like 6 months time, the process surge some might be tempted to sale even before it reach their expected ROI.
For sure bitcoin investors can do whatever they like when it comes to the creation of longer term plans and whether they abandon those plans (temporarily) because they believe that they are catching some kind of a price wave and expecting a correction.
I understand the inclination to get into bitcoin and to believe that a 1-2 year plan is long term, when the fact of the matter still remains that bitcoin has had 4-year cycles and is likely going to continue to have 4 year cycles (until they stop), so even when I got into bitcoin in late 2013, I was thinking that my minimum investment time was going to be 1-2 years, so maybe I was saved from myself by the BTC price going down for my first 2 years in bitcoin rather than it going up.. because surely I am currently thinking that any newbie to bitcoin should be able to come into bitcoin with a 4-10 year or longer plan in order to attempt to help to keep them in an actual longer term investment framework rather than something that is not really long term and is just going to tempt them into playing the price waves.
It is really hard to know how a person can create a system in order to keep themselves from being tempted by attempting to play BTC prices waves which is likely going to end up causing them too much stress when maybe they need to spend their first 4-10 years in bitcoin just building their portfolio, and if they happen to reach some kind of higher than expectations goals, then maybe they can start to consider various ways to cash out.. so for example, anyone who is just starting to invest into bitcoin or anything else is going to take 10 years to get to the point of investing 1 year of their salary if they are merely investing 10% per year, and getting to fuck you status will usually require 20-30 years of salary(living expenses), so surely it can depend on goals, and people will sometimes think that they need to make short term profits so that they can consume or buy a house or a nice car, so I cannot say that I really know how to get them into thinking in terms of real long term rather than their usually wrong thoughts of something less than 4 years as being sufficiently long term and then even ending up playing the waves in even shorter periods of time (such as 6 months like you suggest) merely because the BTC price might have had ended up going up a lot.
Holding your investment for a long time is really stressful.
It seems that if you continue to accumulate bitcoin, then the longer that you are in something like bitcoin, you will likely become less and less stressed from the likely to continue to be volatile price moves.
Surely in the very beginning of your investment into bitcoin, you might not give too many shits about the price moves because you have hardly invested anything into it, but as your investment grows then you might have more expectations that the BTC price goes up in order to put your investment into profits.
We cannot know what bitcoin's future is going to bring, but if there are greater levels of profits, then perhaps some of the stress might go away, but there still could be some questions about what to do with profits and whether to diversify into other assets if your bitcoin investment becomes too great in comparison to other assets in your investment portfolio, including if it is the ONLY investment (besides cash).
When you invest and hold your investment for a long time, you have to face various challenges. Due to the volatility of the market you may see a lot of money loss temporarily if you are mentally broken then you will not be able to hold on to your investment but when you are mentally strong and these temporary losses will not affect your investment much but you are successful.
I cannot really disagree with any of this part, except maybe to attempt to clarify that each of us should be attempting to put systems into place in order to help us to deal with bitcoin's volatility, which is likely one of the things closest to inevitable in bitcoin.. we cannot necessarily know the short to medium direction of bitcoin's price but we should be able to expect that it is nearly inevitably going to be volatile in one direction or another and it is not necessarily going to be in the direction (UP) that we prefer it to be volatile.. even though historically BTC's price has tended upward, the upward movement is not guaranteed, even though there are ongoingly great systematic factors that are continuing to put upwards pressures on its prices.
Achieving success by investing and sustaining that investment for a long time is the next step for people to achieve success mentally first.
I personally believe that putting good systems in place helps mentality, even if things might not go in your preferred direction, if you have good systems in place, including being both financially and mentally prepared for either price direction, and you are able to act upon movements in either direction, then your ongoing actions in light of anything that happens are likely going to contribute towards your being (and feeling) mentally stronger.
An investor will succeed psychologically only when his mind does not stop him from holding the investment for a long time and he will hold his investment despite facing hundreds of challenges.
Holding is a mental challenge that every investor must succeed in.
A person can have various plans that do not necessarily include HODLing under all circumstances, and so there might be plans to accumulate bitcoin up to a certain point and even to have various accumulation practices in place that connect with the person's cashflow situation, but then there also could be scenarios to deal with BTC price volatility, and if a person has already reached sufficient levels of BTC accumulation through DCA and other methods, then the next portion might just be dealing with price movements, so if the price goes down to buy and if the price goes up to sell.. but no need to sell very much because none of us should want to deplete our BTC or even to run low on it, even if the BTC price goes up a lot...
On the other hand if we are buying on the way down, we may well run out of money to buy, and then we either have to choose to revert to DCA buying or to just HODL, and HODLing does seem to be a better strategy for when we run out of money and the price is going down, but it does not seem to be a great strategy for when the price is going up, except to make sure that we are not selling too much BTC if the price is going up. .., so frequently people resort to HODL when the BTC price is going up because they frequently have difficulties understanding ideas of moderation and devolve into thinking that if if they sell, then they need to sell large amounts... which seems to me that anyone who understands BTC would want to make sure that they never sell all of their BTC and probably not even large parts of the BTC, even though it should be understood and accepted that selling parts of your BTC holdings is a prudent way to manage your BTC once you have reached higher levels of BTC, but if you are in early stages of BTC accumulation, then selling is not a method to accumulate more BTC.. so then HODLing would make sense for any one who is relatively early in their BTC accumulation journey, which may well take 4-10 years or longer to reach BTC accumulation target levels.
Holding is a mental challenge that every investor must succeed in.
Is it all?, I think it depends on what they plan. All I know, don't have to hold back for long. Investors have their own techniques.
But if indeed he plans for the long term, maybe Hold is a good option. But indeed they must master mental emotions. They must learn to be patient. In addition, they must also have a target when they should take off. Because I know,
there are those who hold back but they don't really understand when to sell. Part of the question is also how much to sell... because there may be no reason to ever sell more than half of your bitcoin (or whatever amount that you don't want to sell until much further down the road), but at the same time, if someone does not manage his/her holdings by including selling on the way up, then that person is likely to put themselves in higher mental stress.
On the other hand, even though there might be stress from highly volatile price moves, but if someone is still within the first 4 years of accumulating and either has not even gone through a whole BTC cycle while accumulating BTC or did not front load a lot into the investment, then there is likely no reason to sell any BTC while trying to build a position.
Once the position is built, then that might be another story... so for example, regular people might take 30-40 or more years to get to fuck you status, and surely many people never get there... so if someone is new to investing expects to get to fuck you status in less than 10 years, then they may well be living in a fanatasy.. but if they are considering getting close to fuck you status in half the time of regular people such as 15-20 years, then that might be more realistic kind of preparations, and surely there can be ways to deal with BTC portfolios that involve selling that comes prior to reaching fuck you status as forms of managing the holdings, but it still seems to be better to build a decently sized position first, whether that is 50% of annual income/expenses or maybe 1x to 2x of annual income/expenses or perhaps some higher amount.
So, selling BTC on the way up might not be a good way to accumulate more BTC it could be a good way to manage BTC holdings and/or psychology, and there can be some challenging balancing in terms of considerations how to treat one's BTC's holdings if they might still be quite a ways away from still reaching their BTC accumulation levels... and we are not all going to reach the same conclusions on how to make those kinds of trade offs, including considering how to manage and/or play the inevitable upcoming and ongoing BTC price waves.
