In every other asset class, a buy and hold long term investment strategy is encouraged and considered conservative, with bitcoin critics frame it as reckless and irresponsible.
In practice, most people will lose a lot more money if they try to trade bitcoin short term.
In practice, most people will lose a lot more money if they try to trade bitcoin short term.
Would I have preferred to sell the top & rebought at the bottom? Of course. I just know I wouldn't have been able to do that. Bitcoin has a ton of volatility, & if you try to time it you will most likely end up FOMO buying & panic selling. Not good for your wallet or your health.
Long term is a way less risky bet than trying to time these cycles. Bitcoin has a tiny float & a truly fixed supply, as adoption increases price should rise substantially. Furthermore, actively trading on exchanges exposes you to substantial risk, exchange failures & exit scams.
Many of the ones claiming victory right now, were in disbelief early last year and tried to call the top, missing out on substantial returns. @VinnyLingham tried to call the top in March '17 at ~$1200, @Bitfinexed called the top a bit earlier around ~$800 & sold all of his btc.
These cycles are inevitable and have been consistent throughout bitcoin's history, but after every downturn more strong hands emerge than the cycle before it. The price then recovers and goes much higher than the previous cycle. For long term holders, this is nothing new.
I have consistently told my followers not to invest more than they are willing to lose for this exact reason. Long term bitcoin investing only works if you are able to withstand these inevitable down cycles. Otherwise you end up capitulating, buying the top/selling the bottom.
Last but not least, I'd like to remind the haters that I said to take profit near the top if you had outstanding debt. The money you invest in bitcoin shouldn't be money you will need short term, it's a long term high risk / high reward investment.
