Financial needs can arise at any time in people's daily lives, and this is why a long-term investment must use that money, that you will not need in any situation, that is, you can handle the situation without this money in any unexpected situation. So after meeting all your expenses from your income, invest the remaining amount, and even if it is very small in amount, there is no problem, because if this cycle continues continuously, this small amount of money will eventually become very large. But if you invest the necessary amount, and when you need that money, if you sell that investment before the goal is complete, then you will have to face a very big loss, which is why Bitcoin investment should be invested continuously through discretionary income, so that it can be held for the long term without any problem.
Yeah this unforeseen circumstances is the reason why is advised for an investor to set aside emergency fund and also back up funds or reserve funds because this funds is what will guide you all throughout your accumulation journey, without you keeping this above mentioned funds in place be rest assured that your accumulation journey will not be completed Because when emergency arise in the future you will not have any other funds you can dip hand to solve this problem apart from your bitcoin investment especially when the emergency requires immediate attention at this point you won't have the opportunity to think for any possible way out. Moreover you can't think of going for loan when you already have a huge amount of money in your bitcoin investment, the only option there is to sell. but if you have emergency fund or reserve funds you will worry less because you have other alternative aside from your bitcoin investment this is the reason why emergency fund and reserve funds need to be make available in all time.
In your bitcoin accumulation process, your cashflow management is very crucial to the success of your entire bitcoin long-term goal. An investor who has a stable income stands better chances of succeeding in bitcoin than an investor who does not have a stable source of income or is a contract worker. Here, it is quite difficult to protect your bitcoin when you have not kept an emergency funds ready through a calculated cashflow management. Your discretionary income is that percentage of your income that you don't need for any immediate attention: that percentage of your income that remains after taking care of your basic responsibilities '. This fund is the best for investing in bitcoin and creating a back up funds and emergency funds. It is your emergency funds that you run to whenever there is an emergency situation before your next payday and by so doing, one can be assured of holding his bitcoin through some cycles of bitcoin.
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You are very correct on this , if anyone have over accumulate his Bitcoin for long it is good for him or her to make a withdraw reason being that if you have invested Bitcoin enough in some duration of years and the Bitcoin is growing like 20% of your income you can make a withdraw of 10%. some time some people miscalculate and they regret of miss using their over accumulation. sometimes will punish ourselvez after all for not being aggressive enough it is not really a little mistake then it is better to have good orientation to invest through the years than not investing , so no Bitcoin will be in a worse condition and really there will be a lot in a worse period who had not been over accumulation.
It is not just about accumulating bitcoin for a long time, the question is, have you reached your over accumulation target? How long do you still have in active service? What is your age? Do you actually NEED to sell the bitcoin?
Most times investors get carried away by time and they go about making mistakes and brag about how long they have been an investor in bitcoin without considering how much they have invested. This is why it is very important to always be aggressive in your bitcoin journey but not over doing it. In your aggressiveness, you have to maintain your investments with only your discretionary income. This however entails that aggressive accumulation should always come when you either have an increased income or a reduced responsibilities. This will allow you to have more discretionary income with which you can invest more aggressively. As a beginner, you have to aim at investing for a very long time over 4 to 10 years and still counting as long as you are still in your active service or has no emergency needs to sell off your bitcoin stash.
What you regard as taking profit only sounds right when you have reached your over accumulation target and this does not just happen when you don't have any crucial need to sell because selling off your bitcoin stash should not be considered fun.
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It is true that the price fell last year, so the price may not fall again this year. The price of BTC is not based on the time of the day before or the next day or does not follow the previous year's calculation. The movement of the market depends on many factors. For example: institutional investment and the global economy, sometimes government policies and human adaptation, the price is higher or lower. So no one can say for sure when the price will go up or down or how much it will go down. So calculate your profit and sell when the price increases significantly or makes a profit and keep buying Bitcoin when the price starts to fall.
This is summarised with the term bitcoin volatility. This is the power of bitcoin and this is the more reason bitcoin enthusiasts advocate for a long term holding when there would be higher probability of experiencing a cumulative gain per bitcoin. As a good investor, you need to have an accumulation target and plan on how to achieve it within your financial strength ensuring that you don't get distracted on your way to achieving your accumulation goal. So there's no need taking your supposed profit when you haven't achieved your over accumulation target because such attitude is to traders. Selling to buy at lower price is the attribute of bitcoin traders and most times they end up not re-investing in bitcoin or they buy at loss in order to remain in the bitcoin investment. You may buy your bitcoin at $109k and then decided to sell at $115k, you waited for it to dip back to $109k for you to reinvest but it's heading up and now at over $122k. What will you do, you either buy at loss or stay out of bitcoin.