* Know how to manage your investment very important, this will help you scale through some challenges
What kind of management we talkin' about here anyway? We're in it for the long game, HODL mode activated. Not phased by market swings, not even by those dramatic dumps, because history’s shown us they’re just temporary speed bumps. Let’s not forget,
Bitcoin’s "died" 477 times and yet here we are, sitting on one of the most successful assets of our generation.
When it comes to managing your investment, it’s more about how much fiat you're willing to put in. Whether you're buying small during dips or going all in, the key is holding it long term.
Managing your BTC is not ONLY about figuring out how much you are going to buy, since how you balance your life, your dollars, your other investments and your bitcoin may well be considered a moving target.
Sure, you have been registered on the forum since early 2016 so getting close to 8 years so maybe you have had time to accumulate bitcoin, and you may or may not be done with you BTC accumulation, yet you might go through a maintenance stage where you are neither buying BTC and you are also not selling it either, yet you still should be purposefully considering how you are managing your BTC in that regard.. and what your expectations might be in regards to your BTC. Whether you don't yet have enough, or you are getting close to having enough or you have more than enough can affect how you choose to manage your holdings, which also may include considerations where to keep it, which could end up being a combination of places that may or may not be shared with others and ideas about whether you have figured out succession strategies too.. or if you are going to just die with your bitcoin.
I have no issues with where or how to store it since I researched that well before I started accumulating. I actually started back in 2016, but honestly, the amount I’ve gathered isn’t enough (yet) to make me retire. As for budgeting, I’m good with that too since I have income outside of the Bitcoin space that helps me live a simple life. But I’ve always kept in mind that I need more time to keep accumulating, and when the right moment comes, I’ll sell even just half of it and live a financially free life by my own standards.
This brings us back to the issue that you raised in regards to maintenance, and personally I believe that there are ways to set up your bitcoin stash and to valuate it in such a way that you don't need to sell large quantities of it, but sure if you are planning to shave 50% or whatever your amount at some price peak, then that could work too.. even though 50% seems like a lot.
Personally I think with bitcoin, it is way better to engage in sustainable withdrawal and you don't need as much capital as you need if you keep your money in traditional assets.. but hey if you don't know those kinds of things, you are likely going to end up selling way too much bitcoin too soon and perhaps you are also not even stacking bitcoin well enough.. which may also get us back to ideas of how does a guy transition from accumulation and then into maintenance and then into some kind of sustainable withdrawal.. which you seem to not really know or understand sustainable withdrawal and that is part of the reason that you consider there to be some value in withdrawing large chunks of whatever BTC you have so far accumulated at the point that you execute such large withdrawal.
You can see some of my sustainable withdrawal points
in one of my threads.
That time will definitely come, but for now, I’m not focused on hitting any specific figure since I’m not ready to cash out yet. I’ll just keep accumulating regularly. I won’t share the exact amount for privacy reasons, but you’ll know it’s big when it satisfies me.
We do not need to talk in exact amounts or even to know which part of the world you are in. In traditional systems usually the person has to accumulate around 25 years of investment value that is equal to 25 years of expenses, so then when he starts to withdraw at 4% per year, he can pretty much sustain his lifestyle.. and of course, there might be some need to count for inflation too.
I personally believe that bitcoin we are able to accumulate ONLY the equivalent of 10 years of our investment valued at the 200-WMA price (that is bottom price) and then we would be able to withdraw up to 10% per year based on the 200-WMA valuations which tends to go up greater than 20% per year. Yeah it sounds a bit complicated, but I think that it is a great and empowering system if you can figure out how to do it, how to target the size of your BTC stash and those kinds of things... including considering your timeline since historically it has tended to take less BTC with the passage of time to get similar goods and services. You can see that trend in
my fuck you status chart - which is not completely up to date, but the underlying ideas are still the same as the current version of that chart.
Honestly, I wrestle with how much to invest myself, but once it's in my wallet, I’m in for the ride. It just waits there, knowing one day it’ll be worth so much more. Bitcoin’s growth is inevitable, especially with big names that once hated it now slowly coming onboard.
You kind of sound like a guy who is in a long term trade rather than an investment, since you seem to have not considered how much bitcoin you need (or want to accumulate) and then you seem to not really know what your target is.. Are you just going to sell all of it when it reaches a certain price, or maybe you have ideas about how much you are selling at various price points?
I am not suggesting that you need to know all of these matters, but you should try to figure out some of the parameters in regards to how you are planning to treat your BTC. and if you are still accumulating then how much more do you need or want? Sure there are some guys who might mostly be done accumulating BTC on a regular basis, but they still might choose to pick up more on dips... so there can be quite a few variations in regards to how to manage your BTC holdings.
I’m pretty sure I know, but right now, I’m not at the point where I feel the need to count all the eggs I’ve saved up. The time will come, hopefully soon, and I’ll update you here when it does. But like they say, privacy keeps us safe, because you never know who’s watching. It’s a good thing our accounts hide our real identities; otherwise, I wouldn’t feel comfortable sharing here.
I agree that we don't necessarily need to get into personal details.. so no problem with that.
Let’s just say I believe Bitcoin could hit $1 million a piece, and when that happens, maybe I’ll be tempted to sell. How’s that sound?
Doesn't sound like a great idea.. .but hey whatever.. you do you.
I like the ideas of shaving off here and there rather than selling large portions, but whatever, you can do what you like and maybe it will all work out for you.
Look at the USA, they used to think Bitcoin was just for shady stuff, but now they’re regulating it and even approving ETFs for the big players.
This is only the start, just the beginning of Bitcoin's climb. You might be tempted to cash out, but when Bitcoin skyrockets, you might regret it. That’s why HODL’s the word.
So you seem to not have any exact target for how many BTC you want or need, except you just buy it from time to time, and then wait for the day that it goes to the moon? When it goes to the moon, then what are you going to do? Sell at that point? You seem to have a pretty vague approach in regards to your bitcoin stash, no?
Selling will be the ultimate success, but I know it won’t happen anytime soon.
I doubt that very many guys should be thinking that selling BTC is a success, but instead figuring out ways that they mostly keep their BTC and then just sell small amounts from time to time and potentially have other sources of cash too.. but yeah, maybe some higher level price based selling and time based selling can also still be worked into sustainable practices.
So, I’ll just keep holding with discipline. Like I said, maybe one day I’ll get tempted to sell. Here’s a little clue: I’ll sell my Bitcoin when it hits $1 million a piece. So, when do you think that’ll be?
$1 million could happen this cycle.. perhaps around 3% odds.. or maybe it is next cycle.. perhaps approaching 20% odds.. or it could be after that.. I have not though too much about assigning exact odds, but there are good chances for $1 million in the coming years. Many of us don't need $1 million to already start executing decently good bitcoin management practices..and of course, many folks are still in their earliest of stages of accumulating bitcoin so they may well be wanting to accumulate more BTC so they might be in a better position to take advantage of $1 million and higher prices.