Press "Enter" to skip to content

Should I Sell My Bitcoin Thats The Wrong Question

Should I Sell My Bitcoin? Thats The Wrong Question on todays episode of the crypto vests should I sell my crypto where is the bottom is Bitcoin going to zero despite these questions being on everyones mind right now theyre all the wrong questions so in this article I would like to share with you why I dont ask these kinds of questions and which question is I ask myself instead so that is the topic I want to talk about today timestamps as always a down in the article description however this episode you really need to know all the information to understand all the information so I suggest you watch the whole thing now if youre watching this article with a title like should I sell my crypto that tells me that your enthusiasm for the whole crypto thing might be waning somewhat so what Id like to do is offer you my new threepart article series absolutely free the article series is called how the crypto revolution is bigger than the Internet and its designed to just restore your faith in this whole space by exploring why the crypto revolution is bigger than the internet so just click the link in description you want to check that out or go straight to crypto asset dot school forward slash free so into the content then should I sell my crypto thats the wrong question so when people ask that question my response to should I sell my crypto is twofold number one I would say whats your goal and number two I would say what are you going to do with the value that you release by selling that crypto so lets do a quick and simple spreadsheet calculation on this so say I had some Bitcoin cash which I did have and I sold it on the show not actually on the article but I said on the show when I was gonna sell it in the runup pre prior to the fork right which was a good decision in retrospect but say you had some Bitcoin cash which I did it was actually down when I sold it so say Ive got some big win cash and say it lets reveal the next step here lets say my position sighs I had a thousand pounds worth of bch thats not BCH being at a price of a thousand thats saying Ive got a thousand pounds worth of BCH then lets say my return on investment is minus 80 percent so say that you know currently the price is down 80 percent from where I entered the price doesnt matter right what matters is the the value of my position when I started and the value of my position now so that means the value of my position now if its down 80 percent is 200 pounds so the question is going next is in order to software ROI to be e which stands for break even so my ROI to break even I need to make a 5 time gain on the remaining value so I need a 5 times gain which is also a 500 gain on that 200 pounds of value in order to return my money so next step so the new value if I was able to 5x my 200 pounds would be the original thousand pounds that Im back to breakeven right so I could just hotle the Bitcoin cash you know and wait for it to 5 X boards were asking the question of whether we should sell it or not and the big question is the big question is what is going likely to 5x right thats the real big question where can I move the value that I release that will get me have 5x gain if youve got faith in Bitcoin cash in particular and using Bitcoin cash in this example fine that would be a Hodel wouldnt it if you believed Bitcoin cash got 5x and just turn around and get back to your entry point or your entry price there we go problem solved right but in the next segment of this article Ill share with you what Im thinking about with regards to what Im gonna do with this so the next question I hear after should I sell my crypto which is related related to the first is wheres the bottom right thats also the wrong question in my view so since no one can answer the question where is the bottom asking it is a complete waste of your time a quick complete waste of my time and just cents youre on a wild goose chase so I dont ask questions like that I instead I asked questions like if Bitcoin hits three thousand dollars what am i person oligo to do and the nice question is if it but if Bitcoin is 2, 000 what am I going to do if Bitcoin goes down to 1 what am I going to do and those questions need to be answered in advance of Bitcoin here in those prices if you wait until its actually at that price youre making snap decisions without forethought without analysis without rational analysis and its likely to be the wrong decision and if its the right decision thats just lucky right so you need to have the those questions answered in advance so as soon as you see a price of 1, 000 Bitcoin there is no decision to be made you made it all that all that you need to do now is take the action that you said you were going to take and thats the discipline thing which is a whole nother story so a good answer ought to all of those questions of like what will I do if they coin hit 1k or 3k or 2k a perfectly legitimate answer to that could be nothing right another answer could be I will sell some or all of my position and another answer could be I will add to my position so those are them basically the three answers to any of those questions you could you could ask yourself if Bitcoin hits X price Im going to do nothing sell some of my position sell all of my position or add to my position the same goes when the market is rising them right this is in key similar question need to ask if Bitcoin hits 5k 10k or 15k what am I gonna do and you dont know wait until then you wanna decide in advance this is this is the whole point of having an investing strategy but like I said a minute ago theres two parts to that because even if you do all this work ahead of time and make firm decisions that Im gonna sell when Bitcoin is 12 and a half K or what is still half of it when it when that time comes will you do it and thats the discipline portion which is the whole nother piece which were not going to talk about today again I dont know your goals I dont know your circumstances so I cant actually give you any guidance neither am I qualified to Im only qualified to make my own investing decisions and then all I do is just share my thought process which is what Im doing right now so if we combine both of those questioners together now lets move on to the Bitcoin and gold bullion divergence charts that Ive spotted recently so this is the analysis that Ive been doing which Im now going to share with you with like regarding my own investing decisions so this is the gold chart in u.s.

Should I Sell My Bitcoin Thats The Wrong Question

dollars so the candlesticks this is the price of gold so if I just hide it so thats the price of gold slapping around in US dollars and then Ive overlaid it with the Bitcoin price in u.s.

Should I Sell My Bitcoin Thats The Wrong Question

dollars according to the bit for next price feed and Im displaying the Bitcoin price as ohlc bars just so that its easier to see right so this divergence Im talking about is that it around about the 15th of November this year which youll see on the far right here lets not get ahead of ourselves though we just need to look at a couple of previous examples of this dance between gold and Bitcoin I have to be careful not to say Bitcoin gold because youll think Im talking about Bitcoin gold as I say gold and Bitcoin so say since the beginning of 2017 which is sort of back here right so there is a loose coalition correlation in terms of trend direction at the beginning of 2017 youve got a general upward move on both Bitcoin and gold then lets move over to the arrows now Bitcoin down here it takes off during like December of 2017 which is here the big run up to 20, 000 but at the same time gold falls then again Bitcoin falls during the February time of 2018 and then gold rises so those are two examples of this divergence happening in the past which came after a you know a correlation the convergence lets say so then we move on to May to August of 2000 and 18 which is around here but Ive got a red arrow and a orange arrow this is when gold falls in price and candlesticks are falling falling falling in it almost a single directional move here not much waves going on and then Bitcoin enters its sideways market when it sort of sat around the 67k mark for a little while and that kind of happened the sideways market in Bitcoin up until recently now whats curious is during August September October here you see that Bitcoin and gold have done again gold and Bitcoin so both entered a sideways move right but Bitcoin was in a sideways market longer and that brings us to what I said earlier on the 15th of November is where others look at this is a clear divergence if you listen to the podcast you can imagine this right you can you can see the overlay between the two prices they are both going pretty much sideways with a little bit of volatility and then when it comes to the 15th of November Bitcoin goes in a singular direction to the downside and gold goes in a singular direction to the upside creating a sort of a sideways V shape right where the two prices move away from each other like opposing magnets and theres a very distinctive point there its actually the 13th of November where the two prices are sort of touching I mean thats not perfect because theyre not with the same price but the divergence is definitely clear if you look at the actual chart now I mentioned in a previous episode actually recently that I was looking for an opportunity to take advantage of the recent drop in the crypto prices but I said I was being very strategic about it I have a bunch of gold and silver bullion sat in my uphold account which I can convert to Bitcoin just at the click of a button the question Ive been asking myself is when to do this so this break that I just showed you in the loose correlation between gold and Bitcoin that child I showed you now from the 15th of November it shows that the purchasing power of gold over Bitcoin specifically is increasing and the further away these two get its creating a bigger and bigger profit opportunity for converting the gold to Bitcoin so applying my two questions then if gold continues to rise in value like this and Bitcoin continues to drop to say below 3, 000 that might be my signal to convert that gold to Bitcoin ready for bitcoins recovery when I can move it back again so take that integrate it into your own decisionmaking process if you find it useful of course but remember always remember Im an educator and not a financial adviser but that is all I got for you today if you liked this episode go ahead hit the like button if you just like to hit the dislike button if you really liked it hey the subscribe button that please leave me a comment below with some feedback and if you would like to support the crypto verse if you would like to get rid of the adverts and if you would like to end cryptocurrency rewards as a viewer and a listener all you have to do is check out the website the crypto verse dot show click on the big blue button at the top that says get paid to watch and thatll take you over to the patreon page which will explain to you how to get rid of the ads how to support the show and how to end cryptocurrency rewards as a supporter other than that I will be back with the next episode of the crypto vests so until then its me Crisco any sayin bye for now you

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *