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You have a couple options. I'll list them in order of increasing risks, and my order of recommendation. 1. You can sell now and cut your rather massive losses
by jfaucett 9y ago
You have a couple options. I'll list them in order of increasing risks, and my order of recommendation.
1. You can sell now and cut your rather massive losses - I'm guessing that's around 40-50% of your initial investment based on a two month old purchase. Advantage: You save any further losses and have no more continued stress (this is big!).
2. You set a price floor and/or ceiling and sell when it hits that level. Same as above but you gain the ability to define a range for potentially cutting losses at the risk of increasing them. The advantage here is you decide the level of continued risk and lack of peace of mind you're willing to live with.
3. You settle in, accept you can lose every cent you invested, and just hold long term, hoping that eventually (1 year, 5 years, 10 years?) you'll make your money back.
One thing to keep in mind with all this is the opportunity cost of capital i.e. a dollar today is worth more than a dollar tomorrow, 100k in a bank account in 2017 is roughly equivalent to 130k in 2027, so if your investment reaches a value of 100k in 2027 you'll still be operating at a rather large loss.
- cesarb 9y agoYou can also do a hybrid approach. For instance, you can do option 1 with half your stash and option 3 with the other half.
- skylark 9y agoIt's even worse than that. Assuming a modest 5% stock market yield, you'll be at ~160k after a decade. At 8% you would have roughly doubled your 100k to 200k. The average person doesn't need Bitcoin. They need Vanguard.