Bitcoin buy and hold strategy
Apr 24, · With the right setup, Bitcoin Mining will outperform the simple buy and hold investment strategies. Many traders and investors believe they can buy Bitcoin at the low and sell at the top. This is an improbable, lottery ticket strategy that will likely lose money over the long term. Aug 29, · Dunn cautions those seeking to invest in bitcoin to be clear about their investing strategy, saying: “For anyone that just blatantly say ‘oh, just buy and hold on,’ in theory, that sounds great. But, the reality is most people do not do that because of price volatility.”. Dec 15, · The only strategy I seriously consider for Bitcoin is a long term buy and hold. An accumulative strategy if you like. Call me a Hodler, yes. When I say Long Term, I .
Bitcoin buy and hold strategyHODL Definition
Bitcoin is very volatile and may hit high prices, but it is impossible to time the top. There is a huge difference between paper and actual gains. You must sell an asset to realize the gains, but how do you know when to sell? The majority of Crypto Hedge Funds failed and lost their initial principal with an asset that is the best performing asset in the last decade! This shows that not even professional money managers can correctly time the market, so what is the probability that an average person will be able to time lows and highs?
In bear markets, other miners with higher electricity rates become unprofitable and stops their mining operations, which causes a downward adjustment in the Bitcoin mining difficulty level and increasing Bitcoin mining rewards for miners with more favorable electricity rates.
Dollar Cost Averaging is an excellent strategy applied to markets that has extreme volatility and an asset that you want to accumulate a large position over the long term.
Investors take advantage of Bear Markets because they are purchasing the lows while most are too afraid to buy. Bitcoin is the perfect fit for such a strategy as it is still a technology and commodity in its infancy that is in price discovery mode. It will have several more boom and bust cycles as it matures into Digital Gold so investors should expect continued volatility and have long term views. With Bitcoin Mining you are receiving Bitcoin every day and therefore, Dollar Cost Averaging into a long-term position.
Yeah you good traders can spot the highs and the lows pit pat piffy wing wong wang just like that and make a millino bucks sure no problem bro. He concluded that the best course was to hold, since "You only sell in a bear market if you are a good day trader or an illusioned noob. The people inbetween hold. In a zero-sum game such as this, traders can only take your money if you sell. HODL soon became a byword for an approach to cryptocurrency investing that shuns trading based on short-term price moves.
Since then it has shot to more than 17 times its previous high, only to fall again by half. Throughout the history of the cryptocurrency, credible voices have made logical arguments that it would go "to the moon" or crash to zero.
Hodlers wash their hands of all this volatility and prognostication. The latter is occasionally referred to as SODLing. Neo from The Matrix asks Orpheus, "What are you trying to tell me, that I can trade my bitcoin for millions someday? HODL is sometimes explained as an acronym standing for "hold on for dear life" or some variation.
While these etymologies occasionally do a good job of capturing the phrase's meaning, they are not how it originated. HODL comes from a fortuitous typo in Your Money.
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