If you must; take profits while you can.
I’m not a fan of meme coins or “moonboys’ projects”, but the perseverance to watch an investment go from a few thousand to hundreds of thousands is commendable. Cooling off and watching your investment go from hundreds of thousands to any further level is out of this world!
In an event like this, you are always caught between selling for profits or holding on in expectation of even more profits. We’ve all been here, at least once. Might sound easy, but it is in fact one of the toughest decisions to make as a cryptocurrency investor.
Bagholders are a special set of people in the crypto space, the most valuable set of investors. Everyone bagholds, at least once in a while. Holding on to a ‘poorly’ performing asset is a struggle between patience and hope…' hopium'. Or a struggle between patience and greed when the asset is performing considerably well. Whenever you hold back from hitting that ‘buy’ or ‘sell’ button, any one of these wins. Well, patience is the base word.
“Patient dog eats the fattest bone”... sounds like an African proverb. I’m not sure of the origin anyways, I’m not sure about its validity either. It was probably more correct a couple of years ago. Regardless, patience is a virtue; not always…, especially in crypto.
That works, in a few cases; some other times, it just doesn’t. A fast-moving space like the one we have in crypto is one of those few instances where holding on turns out to be the wrong move most times. Gains or losses; it could come at any time; unfortunately, these two can happen in (very) quick succession. Anyways, if you are here for the technology, profit or loss might matter a little to you. Making a few quick bucks doesn’t sound bad either.
The popular preaching is to ‘hold on for dear life’. Let’s face the fact, most times this doesn’t really work. The path to bagholding is an easy one. Waiting for the millions and settling for a few thousand or hundreds is a quick turn of events here. The greed index is volatile, this, in turn, results in price volatility. Normal price movements are in response to human behaviour. Apart from this, a space as unregulated as crypto’s might require you to “take what you can, when you can”. There’s hardly an assurance. The extent this happens depends largely on the nature of the project.
Highly speculative projects are prone to sharp price movements. They are prone to ‘accidents’ as well. Most times, these accidents are deliberate and investors are left to mourn grave to mild losses. Well, ‘patient’ investors. Impatient ones probably took all or part of their profits already; in this case, they win. This case is becoming more prevalent. Lack of regulation in the space gives way for speculative short-lived projects. Huge pumps, ridiculous dumps. Investors are easily taken unaware by the quick turn of events. Patience fails them here, unfortunately.
A rather clever move is putting patience to a halt and taking your capital out when a speculative project moves tangibly. The remainder can run along. If the dump strikes, your capital is preserved and a little profit if you’re impatient enough to take profits.
This is not financial advice anyways, just a piece from individual experiences. Holding on to relevant projects for the long term could be very rewarding. Finding these projects from the grass-root could be a very tedious task though.
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