How many here have lived through the last bull or maybe two? Like many who entered the crypto markets way before it gained some mainstream recognition I've seen the rise and fall but this meme tonight hit home.
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I had to share this after talking to an acquaintance recently who believed random coins will do 10000% gains again like they did in 2017. I mean, it's alright to dream but let's not get ahead ourselves, become delusional and somehow gamble our money away. Hence, this post!
Is there anything more painful than entering the altcoin market in their absolute lows and riding the wave and HODLing all the way down? Not many things would be as painful I reckon as much as seeing your portfolio grow 10-20x and then be in the dumpster–down 98% and still hodling for what seems like an eternity.
We've all been through this, well atleast some out there. I've experienced the painful destruction in token value with a handful of projects in this space including Steem from ATH levels.
That's not to say HODLing is bad. If you know what you are doing it can be extremely profitable to build positions into assets over months and years. But if you are a trader then it is not a strategy especially if you end up catching knives into a bottomless pit.
Even long term investors are essentially traders, their timeframes are greatly stretched but risk and money management remains important throughout.
Remember to take profits if you are in profit and if you are staked up, remember to keep some portion of your funds liquid so you can take advantage of the volatility in the markets.
Diversification is good, atleast it worked for me and I am able to continue to be completely in crypto even after these years when many people I know in this space are out of it for good after the previous bull/bear market.
Everyone burns their fingers at some point. After all, everyone in crypto wants to make some money. But if you are 100% staked up you will lose out on the best times when they come around. So risk only what you are willing to lose.
Altcoins have seen a rise and fall this year and many good projects have done 300-500% in recent times. Greed can make us hodl without exercising logic but the markets continue to move on with or without us. Just a friendly reminder if you are new to this space.
There's no dearth of projects and coins that outperform every single traditional asset many times over in this space so remember to protect your capital while you enjoy the ride.
This post is not financial advise
Diversification is good but not for the sake of diversifying let’s say for example you in stocks and you go into private equity it’s basically the same cyclical market but seen as different
To me HODL is a strategy because Bitcoin is fundamentally different from any other altcoin out there
It’s an option on something new! Applying a time frame on when you HODL’d doesn’t matter! It’s like if someone had gold 300 years ago and passed it down to his family today it’s still worth something if not more than the fait or any stocks you could have held
Well my post wasn't about Bitcoin but more to do with my conversation with an acquaintance about altcoins. But even with Bitcoin there is a time to buy and time to sell. It's a very volatile asset class, and far from a stable store of value. That theory is totally out of the window after the crash in March if it wasn't already before that–I say this even as I hodl some myself from a long time.
Bitcoin or any crypto asset is something most people don't fully understand what to do with anyways. You could pass down gold and even Bitcoin today. But if you bought gold 300 years ago it would be worth a LOT more than if you bought bitcoin at the height of the 2017 bull run. That's my point.
While one cannot time the market, it's always good to protect your capital. If one wants to simply accumulate Bitcoin irrespective of what the price will in the short term then its fine, its on them really. Just that its good not to expect it to go 100K just because we entered the market today.
There's our point of entry and where the price is in the overall cycle of the market to consider too and knowing what to do with the latter is very important as it can make or break your portfolio. :)
I have a few shitcoins that did 10-20x, and now worth cents. Or less.
I can never forget the time in 2017 when altcoins that were doing 3-5x were considered bad returns. LOl. People on crypto twitter were like if it is less than 10x, it's not worth investing.
How time changes. Now a 20-30% pump in a random coin grows hope of a bull market. Everyone starts predicting coins that would pump massively.
Well, if nothing else, it has taught me several financial lessons. Good times ahead.
Good observations and yeah last couple of years have taught all of us active participants in this market some very valuable lessons.
I mean, it can be a strategy if you can HODL for decades!
True that. :D
Couldn't agree more... I don't have many regrets, but one major regret I have is not selling at least some of my coins two years ago... lol
Power down your Steem if ya got any and welcome to Hive lol!
lol... done :D... thank you