XRP has risen in price 3 fold after I sold it, but that’s ok
I was holding XRP several months ago before SEC opened the case against Ripple the company. It didn’t shake me out of my holding because a crazy and funny guy named Moon Lambo, who’s a financial adviser but who also claims that he’s not, persuaded me to keep holding it. And so I was doing. The price was swinging being on average $0.4-0.6. Eventually I decided to sell it. Just recently, as the situation has normalised and some clarity, it seems, has appeared, the price has risen to almost $2/XRP.
Why did I sell XRP? Have I given up? Did I cease to believe that Ripple would win the case? No.
Selling a coin doesn’t mean that you’ve given up on it. For you can always re-buy a coin after you’ve sold it, whether it be a lower or even a higher price.
I decided to sell XRP because of the fact that when the price of a coin swings around the same point for a long time, and when the swings aren’t big enough to take advantage of them by trading, a coin does no good to you. Although you don’t lose anything, you don’t gain anything either. In other words, such a coin in that period of time isn’t working towards increasing your wealth. It may grow in price in the long term and that’s nice. However, to squeeze more out of it or any other coin you may possess, one can do better.
One strategy is hold it for a long time, and, if a coin is has some utility to it, big and strong community, it’ll probably go up in value. Nothing is ever guaranteed in the cryptocurrency world, though.
Another strategy is to short it when you think it’s about to decrease in value and re-buy it at a lower level. Then rinse and repeat while it fluctuates. Isn’t it better that merely holding it for a long time without taking advantage of the swings along the way?
The key here, though, is that one can’t know with 100% certainty when a coin will go up and when it will down. One can do a research, listen to others and expect that it’ll go in a certain direction, but it always might go in the opposite one still or merely remain on the same level.
You can even re-buy it if it goes up in value after you’ve sold it and this way you may also benefeat from a fluctuation provided that a coin will grow futher still.
And another strategy is to move coins around, from a one or ones that aren’t expected grow now or have just grown and therefore it’s not expected anymore as of now, to a coin or coins that are about to start growing.
I sold my XRP and although it’s grown 3 times in price recently, that’s ok because I didn’t sell it completely for fiat, but for other coins that, likewise, have grown. Besides, I still hold some XRP, some of which I re-bought recently.