At the beginning of 2018, many people started wondering if now was the right time to sell bitcoins. They wondered this against a background of prices that first stopped rising and then started falling. The natural reaction to a phenomenon like this is to sell, especially if your bitcoins had already made a profit for you. If this is your decision then that is a fair enough and, as we have noted, a perfectly normal and fair reaction. After all, if you bought your bitcoin in the first place as an investment, then why not realise their value at a time suitable for you? However, if you have a more lasting interest in bitcoin then there are other factors which you may care to keep in mind before you contact your broker.
Many different people invest in bitcoin for many different reasons. Leaving aside those who use computer power and time to mine the currency, there are those who use bitcoin to purchase goods and services. These are the founders of, and true believers in, bitcoin, the people who are attracted to the idea of a currency that is beholden to no government or national economic policy and is unaffected by the decisions of central banks. Believers in these currencies without borders will perhaps be less inclined to sell their bitcoins since they do not view their holdings as investments or commodities in any way. If you are one of these people then now may be the time to sell your bitcoin, but probably only if another cryptocurrency has caught your eye, perhaps one that is closer to the original ideal.
Others invest in bitcoin as part of a balanced overall portfolio. If you are such an investor, then you will know that bitcoin is volatile and that its price behaves in ways that those of other equities do not. In fact, you may have invested in bitcoin because of this volatility, in the way that others invest in gold, another volatile item often used as a balancing factor. Is it a good time for these people to sell their bitcoin when it is doing exactly what they want it to?
Those who invest in bitcoin to trade it are those who will be asking themselves our title question most carefully. Yet even here there will be different reactions from different investors and to a degree, these will be split between the longer-term investor and those who are newer to the cryptocurrency phenomenon. The latter may have bought bitcoin during the currency’s wonderful year of 2017 when the price hike seemed endless and good publicity and confidence flourished. Such investors may find themselves in the position which we outlined in the first paragraph. Others, the longer term, more experienced investors in bitcoin, will have learned about the volatility of the product and will be less worried by the events of early 2018. Even so, the decision on whether they sell their bitcoins or hold them is a purely personal one.
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