Why can long-term holding of coins win, and what kind of money can be earned?
Earlier, we talked about what kind of money the leeks can make by entering the currency circle, which includes these three categories: earning money from the price difference of currency price fluctuations, earning money from value return, and earning money from the value appreciation of currency growth.
The first category, earning the price difference of price fluctuations in the short term, will not be discussed here.
The second category, earning money from value return, requires the courage to buy high-quality currencies at the bottom. The price of the big bull coin will eventually return to the value behind it. To dare to buy when the big bull coin is undervalued, you need to be very familiar with the fundamentals, be able to grasp the relative position of the coin price well, and correctly understand the logic of the capital market, which ordinary leeks cannot do.
The third category, earning money from the value appreciation of the leader, is the underlying logic of why long-term holding of coins can win. The law of operation of commercial society and market economy is that the strong will always be strong, and good currencies will gradually grow and become stronger, and the intrinsic value behind them will be continuously improved, which will eventually be reflected in the price of the currency. This is also the underlying logic of value investment.
However, how to judge which is the legendary good currency cannot be understood through technical analysis and valuation analysis, but requires a correct understanding of business logic, market economic laws, and social development laws. Only in this way can we truly understand the currency, select the big bull currency, and hold the good currency for a long time without any waves. Only by constantly using time to verify your judgment can you truly enjoy the fun of value investment.
6 years of experience in the currency circle, you can consult any questions, and friends who want to communicate with Jiaqun click on the avatar.
