Ripple (XRP) hit an all time high today at just above $3 per share. The asset was a little late to the party amidst growing value in Bitcoin, Ethereum, and LiteCoin, but has certainly made a valiant effort in catching up. When I wrote about Ripple back in mid-November, I simultaneously bought XRP at about $0.25 per coin. When it shot up to $0.75 per coin, I sold and happily collected my earnings. Now, at almost $3 per coin, I wish I would have stayed in!
This brings up an interesting dilemma from an investing point of view, specifically related to how long one should hold something before selling. In an industry like crypto, and especially with a currency like XRP which I believe to backed by a company that is stable, well-managed, and certainly well-funded, one could argue that investing in XRP should be a long term position. This makes it a very attractive investment for a lot of people, and certainly contributed to my own decision to purchase XRP several weeks ago. After all, investing in positions that you intend to hold over the long term is almost always preferable to short-term trading; many successful investors that I have tried to take cues from in my own pursuit of success like to say that time in the market is better than timing the market. I wholeheartedly agree.
However, I am still weary of becoming greedy to the point where I overstay my welcome in pursuit of higher gains instead of selling out early when I’m up 20-30% (or in the case of my XRP investment, 300%). It’s an evolving part of my thought process when it comes to what I’m willing to hold, and for how long; historically I would have much preferred to settle with modest returns rather than assuming additional risk by waiting for even better performance. Now, I’m starting to shift slightly towards a more risk-tolerant position. I bought Bitcoin @ $11,600 per coin a few weeks ago and have been sitting on it since despite having the opportunity to sell at a very acceptable level of appreciation. I believe in the underlying viability of Bitcoin, and the part it will continue to play in the ongoing revolution brought on by blockchain technology. And thus, I’ve decided to hold, assume a little more risk, and see where the future takes me.
But not before putting in a pending stop-loss order at $12,000.
Questions or comments? Leave them below!