For crypto investors, this is possibly one of the most asked questions in recent months: should you cut any losses and trade your Bitcoin immediately or should you hold on to your investment, hoping that prices surge once again? You can always just sell your Bitcoins on crypto exchanges, using the information about the most reliable ones on Bitority.com. But it’s the easiest way out of a dilemma. Let’s look closely at all the aspects of Bitcoin’s price drops, analysing the benefits and pitfalls of both trading and holding.
To Hold, Buy or Sell Bitcoin?
There are innumerable factors surrounding Bitcoin’s market price. It’s even said that the price is manipulated by a shadow network. Nutso conspiracy theories aside, the price is solely based on what one will buy or sell it for. That’s how prices work, for everything. But the main concern when deciding whether to hold, buy or sell, is by looking at market predictors for future pricing. Afterall, you wouldn’t buy something now if you knew you could get it cheaper in the future! The following are some important considerations that could affect BTC in the future.
Bitcoin Price Trend 2019 – Holding is Difficult
By examining the most recent trend you can determine whether it is worth you investment. Currently, the price of Bitcoin has decreased 80% from it’s all-time high. Not only has it dropped after its all-time heights of December 2017 and January 2018 ($17,500), but it has been reaching new and new lows during the last months. The current value at time of writing is around $3,590.
That being said, do your research. If you know you want to invest, buy small amounts over a period of time. If you only want to invest at a fixed price, wait for that price! It is important not to act impulsively.
Number one rule of Wall Street. Nobody… and I don’t care if you’re Warren Buffet or if you’re Jimmy Buffet. Nobody knows if a stock is gonna go up, down, sideways or in fucking circles. Least of all, stockbrokers, rightMark Hanna – Wolf of Wall Street
The Cryptocurrency Market is Flooded
The cryptocurrency market is quickly flooded with different types of coins and blockchain-based technologies. Some currencies never gain traction, while others have a fantastic support and manage to raise a huge market cap. Prominent altcoins could potentially have an adverse effect on the value of Bitcoin and its viability
This makes investing in cryptocurrency appear complicated, but the fundamentals of investing still apply. Coins to watch out for include Bitcoin Cash, Ethereum, Litecoin, Monero, and Ripple, to name a few. Undoubtedly, Bitcoin remains the dominant market force. It’s a household name, despite many misconceptions. It is a market driver, and influencer, but it can work both ways. Cryptoscurrencies with innovative solutions behind them and with a specific practical value are actually able to outperform ‘the King’.
Both global and national economies can have a huge impact on crypto prices. The world economy is currently experiencing a growth of approximately 3%, which is the highest indicator since 2011. During times like this, more money is being spent and more investment opportunities arise. Sustainable financial situation would be beneficial for the future of Bitcoin, despite the fact that it is designed to disrupt traditional industries connected to money.
Sell – Timing is Everything, not Analysis
The first option you have is to sell your Bitcoin at a set increase, say 10% above their bought price. This works on the premise that BTC price will never rise to the highs of $17k we saw in December. For those who bought their Bitcoins cheap, it means that they can make an immediate profit. They may, however, lose out on a bigger gain, if the coin does reach new heights in the future.
On the flip side, for those who bought crypto when the price was higher, it could mean breaking even or making a loss. The main point is, however, that you won’t be losing if the price of Bitcoin continues to fall.
This option is certainly viable but it all comes down to your own personal circumstance and the current market situation. It seems to be the most reasonable if you need that cash you’ve previously invested immediately. If you believe in some specific altcoin, then it would be also great to trade your BTC for it. However, as it looks as if the price of Bitcoin is going to rise, it is generally not wise to make a knee-jerk reaction and sell hastily.
Holding Bitcoin – The Waiting Game
This is extremely dangerous, but it could also give amazing rewards. In essence, you are holding on to a Bitcoin investment hoping that the price will dramatically increase again, or hell break even! This is all dependent on your investing goals, or ideological goals for having bought bitcoin in the first place. For all we know, the price could continue to drop and tail off even further.
As with the first option, it is a case of personal preferences. If you do not need that money and you are not making a profit currently, there is no reason why you shouldn’t hold on to it. While the whole market is waiting for more institutional investors to get involved, it’s not clear how this will affect Bitcoin’s development or price. The whole cryptocurrency climate could drastically change regardless, and enter a new stage of development. The main issue is that there is no guarantee to gains.
Cryptocurrency – Anything can Happen
Always remember that there are no guarantees when it comes to any investment, especially cryptocurrency. The best advice is to become knowledgable, do your research, resist impulsive purchases, and manage your money. Cryptocurrency is not a sure thing, and defeintely not a get rich scam, although this year has been a lesson to those gullible enough to ride the hype train of last year.
Consider all options carefully – never make rash decisions as it could turn out to be the wrong choice in the long run. As the future of Bitcoin is uncertain, take into consideration all exogenous factors and personal preferences. If you find it too stressful and don’t want to deal with crypto anymore, then sell your bitcoins; if some altcoin attracts you, transfer your investments by trading BTC; finally, if you still believe in the power of the number one crypto, just patiently hold it.