I was recently a guest on the Mr. M podcast, where the host, Maurizio (Mr. M), and I discussed many of the realities of bitcoin investing that are often not discussed with enough nuance.
To put it in context, Maurizio invited me on the show because he wanted to talk about an opinion I wrote last week titled “Don't Buy the bitcoin Dip,” in which I shared that we've already been in a bitcoin bull market for over two years. . and now is probably not the best time to make any major bitcoin purchases. (Note that, in the article, I did not encourage anyone to sell their bitcoins, nor did I suggest that they stop dollar-cost averaging of the asset.)
We discuss the article and also address other dynamics related to investing in bitcoins that are not often mentioned. So, I thought I'd share some points from the conversation here as a preview of the episode.
By investing in bitcoins, you can:
- Sell something if you need some cash, and it's best to do so while the price of bitcoin is high.
- Don't bet everything on bitcoin; Having a cash cushion can be psychologically beneficial as bitcoin is a volatile asset
- Consider timing when making larger bitcoin purchases; The price of bitcoin goes through boom and bust cycles, and it is best to buy during bear markets.
I share these points because often the loudest voices in the bitcoin space convey messages like “Buy the dip” or “Never sell!” (my favorite example of this is the What bitcoin Did episode titled “Buy the damn dip” which was published near the peak of the 2021 bull market), causing those new to the space or who could benefit from selling or spending some bitcoin during a bull market to not do so.
If I hadn't sold some bitcoin during the latter part of the previous bull run, I wouldn't have had the cash cushion that made it easier for me to quit my previous job, which made me miserable, so I had some financial respite. room while looking for work in the bitcoin space. And here I am now, writing articles for bitcoin magazine to make part of my living. because I sold part of my bitcoins.
Therefore, understand that bitcoin is a tool that can be used in many different ways. Examine your life circumstances and think for yourself about how to use your bitcoins. Don't just listen to devoted HODLers who may make you feel like less of a Bitcoiner for doing what's best for you.
This article is a Carry. The opinions expressed are entirely those of the author and do not necessarily reflect those of btc Inc or bitcoin Magazine.
