Bitcoin price is rising up in rocket speed and penny-pinching mind is always yelling that hold.. hold and hold your Bitcoins. Don't convert to fiat or spend them. But, there's a big risk...what to do?. This is a question somebody asked me today.
I didn't answer at him, but, thought deeply about that and got the following mind.
If you've 10BTC convert 5BTC into fiat and wait until the remainder is reaching to 10BTC and do the same again.
Is this a good advice?
This is something everyone has to decide for themselves and depends on a few things.Some people just want to profit from
BTC in short term,others have plan to hold for long time.If you have 10
BTC and need money for something there is nothing wrong to sell 5
BTC or more/less amount.
If you invest in
BTC, holding is always risky in terms of price,you can lose money or you can profit from that.For people who can not live with such risk
BTC is not option for investing,better buy gold or something like that.
I am not sure what you want to say with convert 5
BTC in fiat,when you sell them you have only left 5
BTC-you think to sell that remaining 5
BTC when they double price or what?
A bit hard to understand because I think he was talking about 5 Bitcoins but was thinking about the fiat equivalent of it.
Just use the price $10,000 per BTC as an example (easier to do the maths): He meant that he has 10 Bitcoins, worths $100,000. He sells 5 bitcoins and he will still have $50,000 worth bitcoins (5 BTC). If the price doubles (goes to $20,000) then he will have same amount in fiat ($100,000) like in the beginning and using the original price ($10,000) it worths 10 BTC again.
The problem is that you can't count always in fiat when you talk about BTC, it's just not as simple.