Sometimes it is difficult to balance the scale between investing further from our rewards to earn better, and withdrawing the rewards to fiat for other offline needs. For those who have been long in the crypto sphere and have positioned themselves in various rewarding schemes such as staking, lending, and yield farming, it is easier for them to convert some of their rewards to fiat because their earnings are considerably high. For newbies or redfish, as we call them in the hive community, their earnings are quite low for them to consider withdrawing to fiat. Most likely, they will want to reinvest the profit to increase their reward.
Now, cryptocurrency is not just volatile but comes with some level of concern. Sometimes one is forced to consider withdrawing some of his profits to fiat for the fear of a possible crypto ban or unfavorable regulation. One challenging thing about cryptocurrency is that our earnings most times are a function of what we have invested. For example, on Hive, every user has the same privilege when it comes to curation but the reward earned from curation varies. Those with higher Hive Power earn better than others. One is thus faced with the challenge of whether to keep reinvesting up to a certain level or to take home profits at every point in time.
The fact is that every individual has different goals and strategies. Some people are ready to reinvest every single profit they make because they are aware of what they will benefit from it in the long run. Whatever strategy one desires to use, the important thing is that the money is sent to where it will multiply itself. Generally, it is always good to establish something offline so that you will have something to lay your hands on during unforeseen circumstances.