In other words, even though I have been continuously selling, I have not been overly selling.. so there continues to be a lot of extra that could have had been sold at earlier stages but it was not sold.. so it is just sitting within my BTC holdings as extra bitcoin that could be sold at any time, whether the BTC price is up, down or sideways.
that is because you have been selling a little portion of your bitcoin, which is why you always have a lot of extra bitcoin left after you most have sold a little portion of your bitcoin, and of course using this formula will make you not to over sell your bitcoin. This is why this formula can be considered as the best formula ever, when it comes to the time of selling our bitcoin. And of course with this formula even if you're selling your bitcoin continuously definitely it won't affect our holdings.
Of course, you can do what you like, yet I still have repeatedly stated that it is likely better to not begin such process of selling any of your bitcoin until you have reached a status of overaccumulation, so then the 10% that ends up getting sold every time that the BTC price doubles is overaccumulated amounts of BTC.
You're absolutely right JJG, and of course selling our bitcoin when we have not yet accumulated more than enough doesn't make any sense. Moreover, anyone who chooses to go with the method of selling 10% of his bitcoin when you have not yet accumulated more than enough bitcoin in your portfolio, Definitely you will end up messing everything up. However, this formula of selling 10% down to 3% everytime the price doubles is mostly used by those investors who have already accumulated more than enough bitcoin in their portfolio, and not for those new investors who are still struggling to build their bitcoin portfolio.
It seems to make less sense to start to sell BTC before reaching such overaccumulation status because you would then be engaging in selling and buying at the same time.
Which is very wrong, anyone who is into bitcoin investment should make sure he get to the extent of overaccumulation before he/she will think of selling, so that we shouldn't be looking at buying and at same selling our bitcoin.
Surely, you might be able to come up with your own possible reasonable formula that might involve selling before reaching overaccumulation status, yet that seems more like trading to me, rather than investing. I don't recommend trading bitcoin since bitcoin is amongst the best (if not the best)
Yeah, is obvious that selling our bitcoin before reaching overaccumulation status is just like that of trading. any investor that chooses to use this formula is definitely going for short term profit and not for the long term. And of course I Sense it through your posts because ever since I started going through your post I have never seen you in anyway recommending bitcoin trading to anyone here, instead you're still against it. Because you knew that trading has a high level of risk, than that of crypto investment More especially (bitcoin)
I agree that the lower amounts of cashing out are better, especially if you are still inclined to allow your BTC holdings to grow rather than withdrawing from them, and also if you have other sources of income, you might not be in a position of withdrawing from your bitcoin. Surely at some point a guy might decide to quit work and then to life off of his bitcoin, and at that point, you would likely prefer that your bitcoin is either able to sustain you or at least to supplement other income sources that you might have that are able to sustain you at your current standard of living and any anticipated improvements in your standard of living.
Your point is very clear JJG, though I have a source of income but I don't earn a decent amount. And I have been in this accumulating process some months ago, and I have not accumulated enough stash of bitcoin I just want to Stick to making the accumulation until when I finally reach the status of overaccumulation. That's when I can decide if I will go for 5% everytime the price doubles, which is why i make used of the word "prefer" because I have not gotten to the level were I can make use of that formula.
Selling our Bitcoin before overaccumulation means that it is a short term plan, which is not very good for our Bitcoin investment, and its likewise a trading mindset, I have been trying to stack up my bitcoin for quite a some years now, its best for me to focus on my long term investment and get to my overaccumulation before i can make use of lower amount of Withdrawal. But right now I am more interested in growing my Bitcoin, That is why it is important to have a strategy set aside that would not force us to sell before Overaccumulation. That is why it is important to have our emergency funds set aside and floating funds as well.