Long-term investors in bitcoin are those can afford to hold for longer time periods in the investment space. They come in with sufficient capital. Achieving a balance of the overall risk in investing comes with owning a diversified mix of stocks, bonds, cash, and crypto. Bear markets and crypto winter do not scare long-term holders as they knew the volatility drama is something to be dealt with in any investment.
Higher rewards come from high risk and therefore holding through the crypto winter is the long-term holder thing.
In the Bitcoin and Cryptocurrency Market, those who are in the game for long term have peculiar attitudes:
Pomp: “Bear markets bring out plenty of critics and trolls, but it also creates a sense of unity, fortitude, and resilience that the next bull market is built on. Appreciate being on this journey with all of you.”
Vitalik Buterin: “I’m hearing through the grapevine that something important is about to happen. Please recognize the fact that my elite social connections to people who are early to know things make me cool, and please help me validate my self-image of coolness.”
The current market trends with BTC make it appear that the crypto business is losing luster. Several cryptocurrency exchanges are collapsing. Who are the successful investors who are here to stay despite all the drama? They are those who have successful long-term investment strategies.
Some of the noteworthy approaches in long-term investment in Bitcoin Market are as follows:
Positive ROI in investment happens for those who stay invested in the game for the long term.
Stay in the game in the market through highs and lows – lower highs and higher lows – no matter what.
The timeline someone can afford to stay in the market depends upon how close they are to retirement and how soon they will need access to cash.
Have a clear insight of how long it is affordable to be in the Bitcoin game.
It is not possible to consistently anticipate market highs and lows in advance; therefore, align investment to suit risk tolerance.
When there is a market crash, a short-term investor is left wondering if it would be better to cash off; however, the long-term investor leaves the position “as is.”
There should be a purpose for investment and never lose track of purpose.
How long is long enough depends on purpose of investment and affordability to hold for that long.
Have a set of best practices to rely on when the market goes up and down.
Making investment decisions at times of periodic volatility requires a clear picture of personal risk tolerance level.
When you pull your money out of the market during the market setback the stakes of not staying invested is very high.
Temporary market declines are very common – sometimes the timeline is shockingly long too.
Some assets gain value with time even when the overall market has not been doing well over a longer period. So, holding a diversified portfolio is crucial.
Dollar Cost Averaging is a holy grail approach in the investment and wealth building process.
Be clear – Bear Markets are for Buying or Adjusting. Crypto goes in cycles.
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