Cashing out 50% or 25% of our Bitcoin investment anytime the price of Bitcoin appreciate is not a nice strategy most especially for low coiners and investors that haven't gotten to over accumulation stage because their portfolio won't look good even though they are taking profit because the investment will be in a stagnation point somehow.
Holding a long time is key to get massive profit for your Bitcoin portfolio with years and two, three market cycles. Surely if possible, holding your bitcoin for more than 3 cycles would be so great.
It's not bad to cash out (take profit) with 25% or 50% of your Bitcoin investment portfolio, if you already have x2, x4 your initial capital. I say this is good strategy for new investors, because by taking profit 25% or 50% of investment portfolio, they can take their initial investment capital back, and keep it safe. They can be flexible with % for taking profit with this purpose, like if their portfolio is x2, they can take profit 50%; if their portfolio is x4, they can take profit 25%; and if their portfolio is x5, they can take profit 20% and so on.
Remember that after taking initial capital back, they can feel very safely and comfortable with investment. They can work, get money, and use it for DCA in future, it's another way to accumulate more bitcoin.
This strategy is meaningful for new investors who bet most of money for Bitcoin investment, and don't have fund for emergency. Taking initial capital back, and use it as emergency fund after their finance was improved is very good strategy.
This is a wrong investment idea and will finally lead you to selling all your bitcoin when emergency arises. Imagine that you invested in bitcoin without building up your emergency funds believing that you will sell and use your capital as an emergency funds, what if during the peroid that you were buying bitcoin price was up and after a while it dips and stay for a long time. You are already in loss, if an emergency occurs then, which capital will you take to serve as your emergency funds.
Investors that started their bitcoin investment when bitcoin was $100k and bought the road down to $74k, the value of their portfolio have reduced and without an emergency funds, they're gambling because if they're hit with real emergency, you might end up selling all your portfolio in regret and loss. This is why an emergency funds is very important to be built along side with your bitcoin investment for back up when real emergency arises.
You should look at it from this angle, instead of using all your discretionary income to invest into bitcoin and ignore your emergency funds. You should share your emergency funds into two parts, use one part to invest in bitcoin regularly every week and use the other part to be building your emergency funds simultaneously with your bitcoin investment till it gets to three months of your monthly income. This will save you from selling because instead of selling to use your capital as emergency funds, you have already built it and you can take from there.
It doesn't matter if your bitcoin portfolio size is small because after you have built your emergency funds, you can use the money to buy aggressively with peace and rest of mind knowing that you have the important things on ground. As a bitcoin investor, you shouldn't make any moves or actions that will nake you lose out from the compounding effect of your bitcoin portfolio overtime.