Hold It Or Take Profits? VC, Early Bitcoin Investor Knows The Answer

Hold It Or Take Profits? VC, Early Bitcoin Investor Knows The Answer

Bitcoin has demonstrated quite a significant growth for itself in 2017, soaring up by around 1,400% between January and mid-December. Currently, the king of all cryptos is living through a period of swings.

At the end of 2017, after going through a severe correction on December 22, reaching the low of $12,000, bitcoin appeared to be in stagnation. The early 2018 period gave some positive signs of recovery. However, the coin started sweepingly going down after January 7. At the moment of writing bitcoin is being traded at about $14,600.

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However, it still remains an appealing target for piling in as it is the coin with the largest market cap among all the digital coins, which makes up about $246 billion. Moreover, a larger number of trading exchanges continues to embrace bitcoin-based futures, e.g., Cboe and CME.

The situation is no different concerning the most known altcoins, for example, Ripple, Ethereum, Litecoin and the rest, which also showed a significant rise and even overcame the expectations of lots of crypto enthusiasts and critics. In particular, Ripple skyrocketed by 35,000% in 2017, as CNBC reported.

Hence, no wonder that immature investors contemplate when it comes to holding their crypto assets or to take profits as soon as possible. One of the first bitcoin investors and a venture capitalist Fred Wilson seems to have a pretty satisfying answer to that question.

To Be Or Not To Be?

Wilson, who is also the Union Square Ventures co-founder, believes that it is better to take some profits once you see vast revenues in the crypto assets. He highlighted the beneficial side of such an approach in his personal blog AVC

"If you are sitting on 20x, 50x, 100x your money on a crypto investment, it would not be a mistake to sell 10%, 20% or even 30% of your position. Selling 25% of your position on an investment that is up 50x is booking a 12.5x on the entire investment while allowing you to keep 75% of it going," Wilson explained.

The 56-year-old Wilson emphasized that plenty of those who hold their crypto assets are afraid of selling them because they think it is a mistake to do so. However, the venture capitalist assured, there is no guarantee whether they will make a mistake or not. Everything in the crypto investing world is dependable and tough to predict.

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