Holding BTC through peaks


As we move into the next few years, with the next halving we may see another peak. If you hold BTC past the peak, you will inevitably have a lower USD value of your BTC holdings than you did at some point in time. You may feel cheated, like you could have sold some BTC at the peak for immediate spending or doubling down when BTC dropped back down. Perhaps you have even anticipated this potential regret and have put a strategy in place to profit off of a peak.

Here’s one way to look at it. Everyone should have a protocol for how they stack and hold BTC, usually in the form of DCA. Part of that protocol might be long term holding until one wants to dip into their holding to slowly start retirement, or pay for a house. Or perhaps you are risk conscious and want to ensure that at the end of every fiscal year you only have X% of your holdings in BTC.

If you have as part of your stack and hold protocol to predict peaks and troughs, you are gambling. Gambling should not be part of your stack and hold protocol.

Your stack-and-hold protocol determines if and when you buy and eventually spend Bitcoin. If the theoretical USD value of your BTC holdings peaks at $100k, and then drops to 50k, what you should know is the fact that you never really had $100k if your protocol didn’t specify that you could sell or spend at that peak. The only way you could have actually had $100k is if you were gambling.

Stack and hold mindset > Gambling mindset