Holding the coin for a long period is the best strategy

4 Feb 2023

The cryptocurrency market is trading 24 hours a day, 365 days a year. There is no saying that the market is closed, and thousands of cryptocurrency exchanges around the world are trading at the same time. In addition to real people trading, there are also a large number of diligent robots. In this market, we are constantly looking for arbitrage opportunities. Its trading time is much longer than the trading time of the stock market and other mainstream financial assets. That's why it is said that "a day in the cryptocurrency world is a year in the world", that is, the time density of the cryptocurrency market is much higher than the time density of other financial markets.

Moreover, the development of cryptocurrency is still at an early stage, and the current stage of development can even be described as a barren era. It lacks effective supervision, irregularities, and is full of fraud and scams.

The ultra-high tradable time density of the cryptocurrency market, an irregular market that lacks effective supervision, and people’s unrealistic earnings expectations have caused the market to fluctuate very much, which is basically greater than that of any financial asset market. Therefore, in this market, if you want to hold the currency in your hand for a long time (relatively long-term), it is indeed very difficult. This tests human nature and our understanding of the market. There are very few people who don’t move, and Bitcoin always gives very generous return to those people who hold coin for a long time.

In a bear market, when the total value of your digital assets is shrinking, you will inevitably have the urge to stop and cut your losses, and it is even harder to hold coins for a long time. Moreover, in the bear market, it is wise decision not only to hold the currency, but also to continuously increase the position, so that when the bull market comes, we will have higher income.

So, what can we do to hold the coin for a long time?

Continuously earn cash flow

From the perspective of asset allocation, in all assets, cash must be retained, because cash is the highest and most stable asset liquidity. It is the guarantee of our lives. After all, we survive in this world. All use legal currency to buy everything in life.

Keep enough cash to dispel your worries, and then take a portion of the money to invest. This order cannot be reversed. Many people have too heavy positions in the currency circle, at least relative to their own cash is too heavy, which also makes them can not hold a value currency for a long time.

Even if you leave enough cash, there are often unpredictable events in your life that cause you to need a large expenditure, such as illness and hospitalization. If there is not enough cash, you may be forced to sell your digital currency to solve the current difficulties. This often happens in the currency circle, and it happens that there is often a lack of money when the price is very low.

Continuous learning and improving cognition

The money we earn in the currency circle can be said to be cognitive money earned. If we want to improve our earning ability, we must of course improve our own cognition. If the cognition is not reached, it will definitely not last long. Look at those early days when People bought bitcoin at 10 dollar or 100 dollar, they are the first to seize these opportunities, but most of them don't actually make much money.

If you can't reach the height of cognition, you won't be able to catch the opportunity even if it comes, and even if you do, you won't be able to hold it for long before you sell it. On the contrary, those who did not sell in early have a high enough awareness that they can make money even if they buy Bitcoin at a relatively high price. This market has never lacked opportunities, and what is lacking is your awareness.

In addition to learning the relevant knowledge of blockchain, some necessary investment knowledge should also be learned, and investment knowledge help people to earn more money than blockchain professional knowledge, and it is even a priority to learn.

In short, if you want to hold value currencies for a long period of time (for example, after two major cycles), you must have economic strength protection on the one hand, and cognitive protection on the other. I hope we can all gain good income in cryptocurrency.

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