When I first started trading cryptos, I told myself that I would never make a negative trade - i.e. sell a coin at a lower price than what I had bought it at. However, after a while I realized that this is faulty thinking!
I had bought Bitcoin Cash at it's peak, and it's been consistently decreasing in valuation since I've purchased it. At first, I told myself that I will not sell it until it goes up to a higher value than what I had bought it at so that I can make some money off it.
However, a few weeks later I realized that while my money is tied up in a deflationary currency, it could actually be invested in another coin that is increasing in price. Effectively, the opportunity cost of investing my money in something other than Bitcoin Cash was higher than the loss that I would incur by selling it at a lower price. I decided to sell Bitcoin Cash at a loss and invest in other coins. Even though a took a short term loss, this is a long term gain!
Don't let yourself get fooled by these bias traps that our brains create. Sell at a loss if needed to reinvest on other coins whose price is accelerating faster :)
