If you are like many people, you may have bought into the hype and invested in Bitcoin or Ethereum and the many other cryptocurrencies that have since taken over when prices were at an all-time high.
Of course, many of us were all immediately drawn to the fact that these coins could be worth thousands, especially as they continued to make headlines. For instance, while Bitcoin is currently valued at $16,724.515 as of the time of writing, it has shown the potential to be worth $68,789.63 in the past.
However, with prices continuing to fluctuate and being rather hard to predict at times especially as they have shown in the past that they can crash at any given moment, you may be wondering if it is still a good idea to hold onto your digital currency or if you should cash out while you can.
In this article, we thought it would be a good idea to take a look at both options, thus helping you to make an informed decision about what you might want to do.
Should I Sell The Cryptocurrency I Currently Hold?
If you are thinking about selling the cryptocurrency that you are currently holding, there are a few things you need to consider.
First, how long have you been holding onto your digital currency? If you have only been holding for a short time, you may not have made much profit yet, and selling now could mean missing out on potential future gains. On the other hand, if you have been holding for a long time, selling now could help you lock in some of those gains before prices go any lower.
Could you use it for something that can be beneficial? With the world and many industries now appearing to be more accepting of cryptocurrency, it might be wise to continue to use it as a form of payment method. Indeed, there are many around the world that have already started to use virtual currency as a way of playing their favorite games. For instance, there are plenty of iGaming titles now available to play at a crypto casino like Ignition, while others are finding that some traditional games are now accepting in-game payments via the use of Bitcoin and other major forms of digital tokens. It is not just gambling, though, as many industries from entertainment to retail now provide options for holders who are perhaps looking to offload any crypto that they might have.
Finally, it is important to remember that cryptocurrency is a volatile asset, and prices could rebound at any time. So, if you sell now and prices start going up again, you may miss out on making back the money you lost when prices crashed. Naturally, this is all part of the risk-reward that cryptocurrency can provide, therefore it is vital you weigh this up if you decide to sell.
Should I Hold Onto My Cryptocurrency?
If you are thinking about holding onto your cryptocurrency instead of selling it, there are a few things to keep in mind as well.
First off, how much did you originally invest? If your original investment was small, it might not be worth the hassle and risk of holding onto something that could potentially lose even more value. Perhaps it is worth just sitting on it in the hope of seeing that small investment become worthwhile; especially if you have Ethereum or Bitcoin in your possession.
Another thing to consider is what your goals are for investing in cryptocurrency. Are you trying to make a quick profit or are you looking to build a long-term portfolio? If it is the former, then selling now may be the best option regardless of the potential future gains that could be achieved if done successfully. However, if it is the latter, then holding onto your digital currency could still make sense, especially if prices rebound in the future as some experts predict they will.
So, should YOU sell or hold onto your cryptocurrency right now? Only YOU can answer that question based on YOUR individual circumstances. Just remember to do your homework before making any decisions and always consult with a financial advisor to get professional advice tailored specifically for YOU.