Disclaimer: This is my personal strategy. Developed by me for myself. Because it is as close to me as possible in terms of life philosophy.
Whether to repeat it or not is up to you.
I am providing it here for information and to understand why I am skeptical about certain crypto projects, which I write about regularly.
Playing the long game in the crypto market is like a relationship: it’s better to take a break and build something solid than to jump from one asset to another like from date to date, looking for “the one”. It’s much more profitable to be a balanced investor than a nervous trader jumping between charts.
Volatility: How to Avoid Being a Victim of the “Roller Coaster”
The cryptocurrency market is not a ski slope, but rather a roller coaster after a strong coffee: up, down, and you hang on as best you can. Short-term traders are confident that they can predict every turn - well, of course, they have their own time machine. In practice, most of them either nervously watch their stop-losses get triggered faster than they can blink, or buy at the peak to sell at a loss. HODLers (yes, those wise “HODLers”) just sit there sipping coffee while the price jumps. And then - oops! - a couple of years later they are much richer, without even looking at the daily updates.
Network Growth: The Crowd Effect
When investing in cryptocurrency for the long term, know that the more people start using this currency and its technology, the higher its price. Remember Metcalfe's Law? It states that the more people are online, the higher its value. But short-term traders who are constantly jumping from one coin to another often miss this point.
Emotions: The less you twitch, the calmer you are
Imagine the life of a short-term trader: charts, candles, indicators… constantly connected to the market, trying to catch every price move. Sounds like a recipe for failure, doesn’t it? Hodlers, on the other hand, make a decision once every few years – buy promising assets, and then live their lives, knowing that in the long run they will most likely come out on top. After all, the crypto market is like life: sometimes it’s better to do nothing than to twitch at every little thing.
History Lessons: Short-Termers vs. Hodlers
Remember those who bought bitcoin in 2010 for the price of a snack in a cafe and still hold it? They now remember how they started with a couple of hundred greenbacks, and now own tens of millions. And what do short-term traders do? They continue to wander around cryptocurrencies like students at parties: here they grabbed a pretty girl, left her there, because they saw a prettier girl, then to the next party in search of the best one, as a result by the morning - “nothing worked out, the good girls are taken”.
Decide for yourself what is better: trying to beat the market with clever strategies and end up losing your hair from stress, or just sitting back and watching your investments grow? Long-term investing is like vintage wine: the longer it ages, the more enjoyment and profit you get.
