A guy who were to cash out 25% of the value every time that the BTC price doubles would be cashing out half of the profits and allowing the other half to compound upon itself.
Surely my choices to cash out up to 10% the value of bitcoin every time it doubled and then later going down to such values of cashing out only 3% every time it doubles, these cashing out amounts are still allowing 80% to 94% of the profits to continue to compound upon itself, and since my bitcoin holdings had gone through more than 8 doublings (
see my compounding value discussion) from the time that the BTC price was $250 in 2015, so therefore an overwhelming amount of that value had been allowed to continue to compound upon itself at least 8 times so far, even though some of the amount was withdrawn out of the holdings... which I also claim to be serving as downside insurance, too.
I think the idea of cashing out up to 10% the value of bitcoin everytime it doubled is the best way of handling our bitcoin investment instead of selling out all our holdings and still start building our portfolio afresh, so I think the best way is just to use this method that JJG just recommend to us because building our bitcoin portfolio is not an easy task which is why we don't need to be in a hurry to sell our bitcoin everytime it doubled. Moreover, i think I will prefer cashing out only 5% of the value everytime it doubles. Just like as you said about going down to such value of cashing out only 3% everytime it doubles, and still allowing 80% to 94% of the profit to compound upon itself. You know most of this investors don't know about this strategy which is why they always end up selling all thier holdings everytime it doubled, or after the value most have hit thier target. and they will still start building thier bitcoin portfolio from the beginning, But anyone who is going with this idea that JJG just initiated, definitely your bitcoin portfolio will never run dry.
I’m using this partial take profit ever since Bitcoin starts to experience bullrun the first time Blackrock invest on Bitcoin. I sell 10% of my Bitcoin holdings whenever the price experience a 20% to 50% price growth within a week then I consider the remaining balance as FOMO investment in case the price keeps increasing.
In the event that the price correct I buy back again using the profit from the 10% Bitcoin that I sold earlier. This makes me grow Bitcoin holdings without the need to worry if the price will go down or keep increasing after a big move.This act of yours have nothing to do with investing, it's more of trading because you are selling for minimal gains and be hoping to buy back when the price has dip, and by doing so, you might miss that spike in price that Bitcoin normally does just as it happens from $45k to $72k, from $66k to $109k.
So how will you take it if you sold part of your holdings now at $85k thinking that it would dip further, but this time it later rose to $150k, how are you going to take it?
I seriously don't sees this act of yours productive because by doing so, you might sell too early when you would have made even double of your investment if you had waited a little bit longer, so in essence of what am trying to say is that selling with the intention of buying back feels like shit to me because it's a trap that can make you miss that big opportunity due to the fact that you thought you can outsmart the market.
Just look at those investors that hold resiliently without tempering with it for like 10 years interval, and those that are trading their Bitcoin from that time till now, do you think those trading their Bitcoin will even make up to 30% of what the person that hold without tempering with it makes? No, he can't, I haven't even talk about the stress in it, so it's best to hold regardless of the market condition than to be selling for minimal gains that can't have any significant impact on your finances for ever.