Wednesday, March 17, 2021

Newbie question on a newly acquired bitcoin

I own part bitcoin. I am planning to move it to a hardware wallet with a strategy to securely store my 24 word seed.

I am in no rush to sell.

However I don't understand what will it be like when the market drops (whenever in future). What is my best option of the three below?

  1. Sometimes in future extract out the money invested and HODL the rest? Yes, I know this is a taxable event.
  2. HODL the entire coin forever?
  3. Sell at some profit (using a stop loss) and purchase again when it is falling with a hope to average out below my current acquisition price?

How to know the floor for the bear market? Are any TAs predicting the floor instead of the year end price?

I am able to put in the money but don't understand how to remain in profit if I don't have an urgent need to liquidate it.

Any tips would be appreciated.

Edit:removed values from post.


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