Is it really a big mistake to sell portion of your bitcoin and then rebuy back when the price has dip?
The reason why am asking this question is because with the right approach I think this can also be done and even help you get good value of bitcoin when the price dip but there are conditions that would prompt you to actually sell some fraction of your investment.
Let's say your investment has reached the amount of years (5+) you set for it and it's now time to sell with the motion of selling being tied to the fact that the upcoming season is probably going to be the bear market, isn't it going to be a good move to actually sell portion of your portfolio (not all) and then still continue with your steady buying and as you are running your normal DCA you are still active on the bear so that when the dip comes you can buy back with that sold amount from bitcoin portfolio so that your value of bitcoin is bigger and still go on and continue with your investment plans.
The reason why am asking this question is because with the right approach I think this can also be done and even help you get good value of bitcoin when the price dip but there are conditions that would prompt you to actually sell some fraction of your investment.
Let's say your investment has reached the amount of years (5+) you set for it and it's now time to sell with the motion of selling being tied to the fact that the upcoming season is probably going to be the bear market, isn't it going to be a good move to actually sell portion of your portfolio (not all) and then still continue with your steady buying and as you are running your normal DCA you are still active on the bear so that when the dip comes you can buy back with that sold amount from bitcoin portfolio so that your value of bitcoin is bigger and still go on and continue with your investment plans.
I still don't think it's a good idea to sell your Bitcoin with intention of buying them back later. Those who follow this strategy will only get few bucks of profit and they deny themselves from the real profit which Bitcoin gives in the long run.
We are not sure when bull and bear season will start and end. Even if you are accumulating Bitcoins for last 5 years there is no way you can ascertain that when bear season will be starting. Our first target must be to be gather enough Bitcoins and that requires considerable time. Once you have enough Bitcoins and you think you are getting enough profit then you might think of shorting some. But that will require at least 10 years.
Repeatedly selling and then buying when the price drops again, this is trading, those who keep this kind of thinking in mind, they will never be able to achieve real success in Bitcoin. Those who have this kind of buying and selling mentality will most of the time face more losses, because the market will never move according to their expectations, so you will have to face unexpected losses. The real power of Bitcoin is actually revealed over time in the long term, it will behave unstable in the short term, no one can say when and in which direction it will go, but from the perspective of being in long term, only then will we understand its real profit. Decide to hold at least 1 cycle of Bitcoin, you can hold 2-3 cycles according to your ability, the more you can hold, the better success you will achieve. The market will never make you rich overnight because it will never suddenly become bullish like you expect, it grows over time, that's why we must maintain a long-term mindset here, those who can understand Bitcoin and believe in its potential and hold it for the long way, they will ultimately be the real winners.
