Today, I wanted to break from my standard philosophy/psychology topics and discuss crypto investing strategies
The other night, I was talking with someone about my renewed writing output, fueled in large part by Steemit. As a part of this conversation, I discussed how a person is able to monetize their content through the Steem blockchain, which led to a larger discussion about cryptocurrency in general.
This person eventually asked me when I intended to sell my holdings as a way to get out of the space and into something more tangible. I chuckled, though it reminded me of the critical issue at hand: when do you cash out, if ever?
Some individuals have the luxury of earning enough money through their career, investments, or other various streams of income to not even need to consider withdrawing/selling their crypto. But for many minnows, this issue is an interesting conundrum. It's easy to say that once my hodlings hit X, I'll sell, yet I'm sure plenty of early Bitcoin adopters are wishing they had a different strategy.
What do you intend to do with your hodlings?
Sure, everyone is dreaming of the lambo moon shot of our favorite project. Having enough funds to never have to really worry about money again would be the ideal outcome, but that probably won't happen for most hodlers, barring an absolutely insane parabolic event.
Personally, I'd love to have my holdings reach a point where I'm able to purchase land and build something on it. The idea of skipping the mortgage game and forgoing giving my money to the banks is certainly appealing, as is the idea of paying for my home while avoiding a massive debt load.
Having a few structures on my property to rent out to other travelers would be pretty swell as well, turning my digital assets into tangible streams of income. I live in Colorado, where real estate is pretty nuts. In order to feasibly pull this off, I'd probably need in the neighborhood of 500k. I'd need a pretty big moon shot for both Smart and Steem, two of my biggest holdings, in order to make this feasible.
Balancing the ideal with the practical
During the last market peak, my hodlings were looking great, and the urge to cash out was present even if I was far from my long-term financial needs. I decided to hodl, a decision I don't regret despite the market downturn.
It's practically impossible to time the market perfectly. There have been a few instances where I bought into something immediately prior to a boom or sold right before a drop-off, but I'm certainly not a professional trader. The next time the market goes parabolic, specifically with my primary holdings, it may be difficult to not take some profits and that might be the smart move.
As a SmartCash Smartnode operator, I'm certainly going to hold on to a lot of my Smart for a long time, as I believe in the project and love receiving passive income through both node payouts and SmartRewards' payments. As someone who believes in Steemit and enjoys earning more crypto through posting, I doubt I'll sell most of my Steem any time soon either.
But who knows, if things get really nuts I might have to reconsider. What is your hodling timeline?
All uncredited pictures from pixabay.com or my personal account
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