Long-term value investment has several important points in practice
1. Investment Targets
When choosing digital asset investments, holding them for the long term is a wise choice, especially for Bitcoin (BTC) and Ethereum (ETH), which are undoubtedly the top choices. These two digital assets can be held for the long term, even safely for more than 10 years.
Besides BTC and ETH, if considering allocating to other digital assets, one should opt for blue-chip coins, which are the project tokens that occupy leading positions in their respective fields, have established ecosystems, and are continuously developing. These blue-chip coins may have greater potential gains in the next bull market compared to BTC and ETH, while being relatively stable and safe, without the risk of going to zero.
Personally, I am optimistic about two infrastructure tracks: Layer 2 and storage. I believe that the next bull market will see an explosion in application layers, and a large number of applications will rely on these two infrastructures, Layer 2 and storage. In these two tracks, Arbitrum and Optimism represent Layer 2, while Filecoin and Arweave are gaining attention.
However, when selecting multiple investment targets, it is essential to conduct good asset allocation, primarily allocating funds to BTC and ETH, rather than overly relying on other coins. Additionally, diversification is crucial to prevent potential risks. Some projects once considered blue-chip coins, such as LUNA and FTX, have also experienced collapses in the past, so it is imperative to avoid heavy positions during allocation to protect investors from significant losses.
2. Timing of Entry
Grasping the timing of entering the market is crucial for investors, as it directly affects the cost of holding assets. The ideal situation is to buy at the bottom of each bear market, but in reality, most people are not so fortunate and are more likely to buy midway up during a price rise.
Once the timing of entering the market is determined, the next step is to carefully consider the accumulation plan, with various strategies available for selection.
3. Accumulation Plans
There are several simple and effective accumulation plans available, depending on personal investment style and time arrangement.
(1) One-time all-in plan:
When the ahr999 indicator drops below 0.45, use all the funds to accumulate at once and then store the assets in a wallet. This is a straightforward approach suitable for investors who do not wish to spend much time and effort. The downside is that the price may drop further, missing out on lower buying opportunities.
(2) Wait for lower prices plan:
An optimized plan is to wait for the ahr999 indicator to drop below 0.40 before accumulating. Historical data shows that the bottom indicators of each bear market may fall below 0.40, even below 0.30. This requires more patience and frequency in observing the market.
(3) Tiered accumulation plan:
Divide the accumulation funds into several parts and gradually accumulate based on changes in the ahr999 indicator. For example, accumulate the first part when the indicator drops to 0.40, then the second part when it drops to 0.35, and so on. If lower opportunities do not arise, accumulation can be executed when the indicator rebounds to the previous level's price.
(4) Price-based tiered accumulation plan:
Set tiered accumulation price points based on Bitcoin prices. For example, when the indicator drops to 0.40 and the Bitcoin price is 25000, the first accumulation can be made at 25000, then place orders in increments of 1000 at 24000, 23000, 22000, 21000, and 20000.
(5) Dollar-cost averaging plan:
For working individuals, where funds are not invested all at once, a long-term dollar-cost averaging plan can be adopted. When the opportunity to buy at the bottom line arises, initiate a long-term dollar-cost averaging plan. Even if the index rises above the bottom line, as long as it remains below the dollar-cost averaging line, the plan can continue to be executed. It is recommended to do this daily or hourly.
Choosing which plan to follow depends on personal risk preference, market observation ability, and time flexibility.
4. Timing of Exit
The ideal exit timing is when the bull market reaches its peak, but successfully exiting at the top is more challenging than buying at the bottom during a bear market, and most people find this difficult to achieve.
Long-term investment plans are essentially about earning profits from the market's big cycles and are the most robust way to profit. The longer the holding period, the more substantial the accumulated profits.
1. Investment Targets
When choosing digital asset investments, holding them for the long term is a wise choice, especially for Bitcoin (BTC) and Ethereum (ETH), which are undoubtedly the top choices. These two digital assets can be held for the long term, even safely for more than 10 years.
Besides BTC and ETH, if considering allocating to other digital assets, one should opt for blue-chip coins, which are the project tokens that occupy leading positions in their respective fields, have established ecosystems, and are continuously developing. These blue-chip coins may have greater potential gains in the next bull market compared to BTC and ETH, while being relatively stable and safe, without the risk of going to zero.
Personally, I am optimistic about two infrastructure tracks: Layer 2 and storage. I believe that the next bull market will see an explosion in application layers, and a large number of applications will rely on these two infrastructures, Layer 2 and storage. In these two tracks, Arbitrum and Optimism represent Layer 2, while Filecoin and Arweave are gaining attention.
However, when selecting multiple investment targets, it is essential to conduct good asset allocation, primarily allocating funds to BTC and ETH, rather than overly relying on other coins. Additionally, diversification is crucial to prevent potential risks. Some projects once considered blue-chip coins, such as LUNA and FTX, have also experienced collapses in the past, so it is imperative to avoid heavy positions during allocation to protect investors from significant losses.
2. Timing of Entry
Grasping the timing of entering the market is crucial for investors, as it directly affects the cost of holding assets. The ideal situation is to buy at the bottom of each bear market, but in reality, most people are not so fortunate and are more likely to buy midway up during a price rise.
Once the timing of entering the market is determined, the next step is to carefully consider the accumulation plan, with various strategies available for selection.
3. Accumulation Plans
There are several simple and effective accumulation plans available, depending on personal investment style and time arrangement.
(1) One-time all-in plan:
When the ahr999 indicator drops below 0.45, use all the funds to accumulate at once and then store the assets in a wallet. This is a straightforward approach suitable for investors who do not wish to spend much time and effort. The downside is that the price may drop further, missing out on lower buying opportunities.
(2) Wait for lower prices plan:
An optimized plan is to wait for the ahr999 indicator to drop below 0.40 before accumulating. Historical data shows that the bottom indicators of each bear market may fall below 0.40, even below 0.30. This requires more patience and frequency in observing the market.
(3) Tiered accumulation plan:
Divide the accumulation funds into several parts and gradually accumulate based on changes in the ahr999 indicator. For example, accumulate the first part when the indicator drops to 0.40, then the second part when it drops to 0.35, and so on. If lower opportunities do not arise, accumulation can be executed when the indicator rebounds to the previous level's price.
(4) Price-based tiered accumulation plan:
Set tiered accumulation price points based on Bitcoin prices. For example, when the indicator drops to 0.40 and the Bitcoin price is 25000, the first accumulation can be made at 25000, then place orders in increments of 1000 at 24000, 23000, 22000, 21000, and 20000.
(5) Dollar-cost averaging plan:
For working individuals, where funds are not invested all at once, a long-term dollar-cost averaging plan can be adopted. When the opportunity to buy at the bottom line arises, initiate a long-term dollar-cost averaging plan. Even if the index rises above the bottom line, as long as it remains below the dollar-cost averaging line, the plan can continue to be executed. It is recommended to do this daily or hourly.
Choosing which plan to follow depends on personal risk preference, market observation ability, and time flexibility.
4. Timing of Exit
The ideal exit timing is when the bull market reaches its peak, but successfully exiting at the top is more challenging than buying at the bottom during a bear market, and most people find this difficult to achieve.
Long-term investment plans are essentially about earning profits from the market's big cycles and are the most robust way to profit. The longer the holding period, the more substantial the accumulated profits.