How much do you need?


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Not financial advice

Let's say you have 3 BTC, worth approx. ~100k USD. And you ask yourself: should I sell or should I hold?

That's a valid question. If we take a look at how things may turn out: BTC could go even higher - maybe to 100k, then you'd have 300k USD instead of 100k USD, but it could also drop, to say 15k or 10k or nothing, then you'd have 45k or 30k or nothing.

But how do you determine when to sell?

For my journey, I came to the rationale that when or how much to sell should depend on how much you need. Here are some example questions:

  • Would my life be worse (maybe way worse) if I had to sell my 3 BTC for 45k or 30k instead of 100k? Or if BTC would be worth nearly nothing (black swan event)?
  • Do I need to pay taxes and if so, do I have the money for it? What if it drops so low that I can't pay or which results in not much left after taxes?
  • Could I have "upgraded" my life to improve mine/my families happiness?
  • Could I have quit the job I hated and focused on/invested in my passion?
  • Could I have invested more money into better food/lifestyle for a higher quality everyday life?

Or, on the other hand:

  • Would selling my BTC not result in much due to a stable job & income? Maybe the BTC is there as a hedge for the next 5/10 years?
  • Do I need to sell the BTC for a much higher value because the sum now wouldn't be a life-changing amount?

I can't answer those questions for you, you have to do that on your own. And the answers will probably vary a lot - from person to person, from life to life, but in my opinion, they're crucial for everyone.

All of this is a marathon, not a sprint. Sometimes, it takes courage to sell when others are cheering, but seeing into the eyes of despair because life-changing money was not realized, is - in my opinion - much worse.

Or, in a nutshell: hodling for a Lamborghini, Ferrari or other luxury goods while not even having a normal car, is foolish.

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