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Original poster

Bitcoin. Did you cash out too early like me?

72 replies

utterflapdoodle · 08/03/2021 14:32

And if so how vigorously are you kicking yourself?

Anticipating a sharp drop like the 2017/18 cycle I cashed out in mid January. My investment had doubled at that point and I thought that was good enough after holding for over three years.

I'm making it sound like a thoughtful decision but it wasn't. The price was dropping quite fast at the time and I panicked. I later bought back in with about half of the total but missed out on some of the subsequent big rises.

It doesn't help that the other "safer" investments I put the profit into have since dropped. I know the stock market as a whole has taken a downturn at the moment but still it's really galling.

I'm mentally beating myself up about this almost constantly. I can't help checking my investment totals daily and comparing the sum to what it would have been if I had held my Bitcoin.

I know this isn't productive. Investments should be viewed in the long term and from that perspective I've done pretty well. It is not as if I even urgently need the money for anything but I can't seem to forgive myself for this string of bad decisions.

Any words of wisdom about how to learn from this and move on mentally?

OP posts:
NeedToGetOuttaHere · 09/03/2021 19:47

If you made a profit and not a loss then what you did is a positive. You do not have a crystal ball, there was no way of knowing Bitcoin was going to go that crazy.

Original poster
utterflapdoodle · 09/03/2021 21:45

Thanks for that. Yes, I'm slowly coming around to that way of thinking. I didn't actually lose anything. Calling the market correctly at any one point in time is virtually impossible. I'm trying to learn from this and take a long term view of investing.

I understand this is an exceptionally first world problem. I'm not going to get much sympathy (nor do I deserve it!) complaining that I made a profit but, oh poor me, it could have been more!

OP posts:
LoisWilkers · 11/03/2021 11:11

Curious to know what you cashed out at?

AlohaMolly · 11/03/2021 11:14

I’ve only just started investing, got in to crypto, oil AND a few different stocks and shares literally the week before they all crashed. I’m kicking myself too GrinSad I just keep repeating to myself that I’m not a day trader and I was in it for the long term...

—I’m going to sell everything as soon as it goes back to even breaking even—

NeedToGetOuttaHere · 11/03/2021 11:40

It’s a natural feeling.
I get round it by always buying something really nice with any profit I do make. Then I say to myself I’d be mad to not be happy now I have whatever it is and it stops me thinking oh no if I’d hung on I could have made thousands more. If i do make a lot of money I spend 10% on a charitable cause and this also makes me feel positive rather than the negative what ifs.

Original poster
utterflapdoodle · 11/03/2021 16:23

@LoisWilkers It was mid January so the price was about 30000 euros. It's more than 50% higher now. Sad

I took out my original investment and about 10% profit and bought back in, after waiting too long!, with the remainder. Then I thought I would be clever with a series of silly trades that only lost me money. On the upside the money I left in is now 50% up so mustn't grumble.

One positive of this is it's made me react less emotionally to price movements. By taking out my original investment I've removed my skin from the game. Even if it goes to zero I can honestly say I didn't lose a penny investing in crypto. I've also learned not to try to call the market with short term trades. You might get lucky but it's a lot more likely that you won't.

@AlohaMolly If you really are in it for the long term I wouldn't sell when it breaks even, especially not your crypto. I think we are in for far higher rises in the next five years or so.

@NeedToGetOuttaHere That's a positive way of looking at it and you're right that I'd be mad not to be pleased with the profit I made. I will select a cat charity and make some kitties happy. Smile

OP posts:
NeedToGetOuttaHere · 11/03/2021 16:27

Taking out your original investment is a good idea. I sold some of mine yesterday and bought my son a PS5 .

NeedToGetOuttaHere · 11/03/2021 16:27

For his 21st birthday.

HarmonyHedges · 17/03/2021 20:23

Anticipating a sharp drop like the 2017/18 cycle I cashed out in mid January.

I did exactly the same and also bought in 2018. Would have had £10k instead of £3k if I'd held on until now.

Original poster
utterflapdoodle · 18/03/2021 10:57

@HarmonyHedges I feel your pain!

If you made any profit it's best to concentrate on what you have gained rather than what you theoretically lost. Imagine the even worse decisions you could have made like cashing out at a loss which I'm sure many have done with Bitcoin over the years.

OP posts:
NeedToGetOuttaHere · 18/03/2021 11:16

utterflapdoodle will you buy any more Bitcoin or stick with what you have?

MoonClock · 18/03/2021 11:20

you made a profit so I wouldn't beat yourself up too much!

I have a fraction of a bitcoin that I am holding on to for a bit that I got by selling a fraction of an ethereum

MoonClock · 18/03/2021 11:22

and if you have spare cash, don't forget your ISA allowance till 5 April if you haven't used it up (as at least then the investments you make are free from CGT!)

HarmonyHedges · 18/03/2021 11:54

@MoonClock

and if you have spare cash, don't forget your ISA allowance till 5 April if you haven't used it up (as at least then the investments you make are free from CGT!)
I currently get around 0.01% on my cash ISA. It's like a bad joke! And ISA investor lost me £300 last year.
HarmonyHedges · 18/03/2021 11:57

[quote utterflapdoodle]@HarmonyHedges I feel your pain!

If you made any profit it's best to concentrate on what you have gained rather than what you theoretically lost. Imagine the even worse decisions you could have made like cashing out at a loss which I'm sure many have done with Bitcoin over the years.[/quote]
Yes, I keep telling myself to be happy with the profit.
I'll never make a fortune from cryptos as I can't afford to gamble with large amounts.
I kept my original investment amount in Bitcoin and it's doubled again since January, so I'm currently having the same dilemma… Sell or hold?!?
Leaning toward the latter this time.

NeedToGetOuttaHere · 18/03/2021 15:42

I have a stocks and share Fidelity ISA. I opened it in February and take out any money it’s increased by. So far I’ve withdrawn two lots of £250. If/when it goes down I’m going to leave the money alone until it goes up to the original amount.

Helloguvnor · 18/03/2021 16:45

Why do you take the money out? Surely you're better leaving it in and earning compound interest?

NeedToGetOuttaHere · 18/03/2021 16:49

That’s what my DH says but I love to take it out and put it in my current account. Same as with my Bitcoin profit, I’m rubbish at letting things grow which is why I buy and sell Bitcoin daily or weekly.

ThatDamnKrampus · 18/03/2021 17:09

I am so intrigued by this. I would like to dabble but wouldn't even no where to begin!! My dd1 was telling me about another type of crypto that is new? Can't even remember the name - will have to ask her again. And what is an ethereum? Is there a minimum to invest? Sorry for so many questions, I get lost when I try to search on the internet.

TomHardyAndMe · 18/03/2021 17:16

How are you al finding the tax side of cashing out bitcoins?

DH mined his in 2010/11 so cost pennies. Leaving them where they are for now but depressing knowing that we’ll have to pay capital gains when they cash out.

MoonClock · 18/03/2021 19:31

@HarmonyHedges get a stocks and shares ISA then you can also choose where to invest (and the profit you make is tax free!) - if you like dabbling in investments, it's a good way to do it!

@TomHardyAndMe you've got a CGT allowance you can use (£12,300 I think it is? if you have no other capital gains). I guess he could gift some to you and then you sell some (so you'd both get to use your allowance). I suppose you have to see it as free money in a way (if it cost pennies) and it's cash you wouldn't have had otherwise but yes, tax is annoying!

MoonClock · 18/03/2021 19:33

(and I'm not making the sort of sums where CGT would kick in, I've only had v small investments over time!)

Bobbi73 · 18/03/2021 19:37

My husband did similar. He thought it was the sensible choice. He didn't lose but if he'd held on for a few weeks he'd have tripled the amount.
He's philosophical now ( he wasn't at the time!). At least you didn't make a massive loss 😀

TomHardyAndMe · 18/03/2021 20:24

I think last time out accountant ascertained that it was income rather than CGT.

I’ll wait and buy a Tesla with them before paying 40% tax on them!

HarmonyHedges · 18/03/2021 21:48

@Helloguvnor

Why do you take the money out? Surely you're better leaving it in and earning compound interest?
Because cryptos are notoriously volatile. So I put my money in after a crash and awaited the next big spike. It took three years, but I cashed out before the spike had reached its peak.