Cryptocurrency

[northernladyuk]

You've made a tidy profit but the fact you are having to ask a question like this while investing in highly volatile non physical currency makes me think that's by pure luck rather than good decision making so I'd say take a good chunk of profit and put it somewhere else. You can sit there happy knowing you've made a nice sum where many haven't.

Or you could be greedy and carry on regardless..

IMHO

Which do you think he'll go for?

 

[TheGreenBastard]

Question for those of you with a bit more knowledge on this sort of thing.

BTC seems to be rising very fast. I didnt buy a huge amount but its more than tripled. £1K is now about £3.5K.
With my pension, the £10K I invested has already doubled to just over £20K.

Whereas its tempting to assume its going to keep going I've got a feeling it may correct any time soon. Whats the best way to guard against this?

Considering at least taking out £5K of my BTC pension fund and putting it back into a safer fund. Then even if I lose the lot with the remaining £15K (unlikely) Im still only £5K down. Of course, if I took the original £10K back I'd still have a free £10K to play with.

What options do experienced investors consider in this circumstance?

If you have high aversion to risk crystallising 50% of your BTC holdings (on 100% gain) would result in zero loss (not considering inflation) - that's in the most pessimistic scenario of BTC's value encroaching $0. So in a position of selling 50% of your current holdings you could continue to speculate with the remaining $10K and if in the unlikely event you lose it all, you've lost nothing (not accounting for the effects of inflation).

Which do you think he'll go for?

You researched the mechanisms of shares on financial markets yet?

 

[psychocandy]

You've made a tidy profit but the fact you are having to ask a question like this while investing in highly volatile non physical currency makes me think that's by pure luck rather than good decision making so I'd say take a good chunk of profit and put it somewhere else. You can sit there happy knowing you've made a nice sum where many haven't.

Or you could be greedy and carry on regardless..

IMHO

ha ha probably.

 

[psychocandy]

If you have high aversion to risk crystallising 50% of your BTC holdings (on 100% gain) would result in zero loss (not considering inflation) - that's in the most pessimistic scenario of BTC's value encroaching $0. So in a position of selling 50% of your current holdings you could continue to speculate with the remaining $10K and if in the unlikely event you lose it all, you've lost nothing (not accounting for the effects of inflation).



You researched the mechanisms of shares on financial markets yet?

What about medium aversion to risk lol? i.e. bit of a greedy bugger.

 

[FrontEnder]

Question for those of you with a bit more knowledge on this sort of thing.

BTC seems to be rising very fast. I didnt buy a huge amount but its more than tripled. £1K is now about £3.5K.
With my pension, the £10K I invested has already doubled to just over £20K.

Whereas its tempting to assume its going to keep going I've got a feeling it may correct any time soon. Whats the best way to guard against this?

Considering at least taking out £5K of my BTC pension fund and putting it back into a safer fund. Then even if I lose the lot with the remaining £15K (unlikely) Im still only £5K down. Of course, if I took the original £10K back I'd still have a free £10K to play with.

What options do experienced investors consider in this circumstance?

I've said a couple of times in this thread that I would take your original investment out at this point. You said it was £8k previously though, so where did the extra £2k come from?

If you take your original investment out, you've still got a substantial amount left that is all profit. Even if the price of bitcoin goes to zero, you have not lost a penny.

Take that as a starting point. If you dont want to risk as much of your 'profit', take more out. If you're happy to gamble a bit more, take less out.

 

[BrilloPad]

Which do you think he'll go for?

The Newton option?

 

[northernladyuk]

I've said a couple of times in this thread that I would take your original investment out at this point.

This does avoid the Isaac Newton experience.

 

[TheGreenBastard]

What about medium aversion to risk lol? i.e. bit of a greedy bugger.

Depends entirely on what you think the market response will be to recent BTC blockchain changes, market movements (the recent news about futures).

If I was medium-risk averse and my instinct was telling me there's a forthcoming correction I'd move 25% in to a more "stable" holding (be wary we're at market highs in a lot of markets right now) - and wait it out to buy in any such dip. This way your exposure to further growth has only decreased 1/4 to leverage buying back in on correction.

 

[psychocandy]

I've said a couple of times in this thread that I would take your original investment out at this point. You said it was £8k previously though, so where did the extra £2k come from?

If you take your original investment out, you've still got a substantial amount left that is all profit. Even if the price of bitcoin goes to zero, you have not lost a penny.

Take that as a starting point. If you dont want to risk as much of your 'profit', take more out. If you're happy to gamble a bit more, take less out.

Stuck another £2K in a while back....

 

[VirtualMonkey]

Depends entirely on what you think the market response will be to recent BTC blockchain changes, market movements (the recent news about futures).

If I was medium-risk averse and my instinct was telling me there's a forthcoming correction I'd move 25% in to a more "stable" holding (be wary we're at market highs in a lot of markets right now) - and wait it out to buy in any such dip. This way your exposure to further growth has only decreased 1/4 to leverage buying back in on correction.

WTGBS ...You've had a good run and BTC is surely going to plummet soon when people start realising their profits...the plummet may not be as big as people would think though.
Take it all out and wait until the Segwit2x change around Nov 16th (ish). If it goes down then buy back in with your profits and you've lost nothing. If it goes up after the change then you've still got double money in your safe account and, although you might feel a little gutted you didn't get more, you will still eventually get the warm feeling that you have doubled your money.
Just my opinion though...IANAT and I missed the recent bitcoin jump so I'm not even that good at this kind of thing on the face of it