TL:DR:
- Have faith in your investment. If you don’t believe in the project’s long-term potential, don’t hold.
- Don’t obsess over the price you paid—focus on your target price and selling when the market reaches it.
- Think in terms of assets, not dollars. Track the number of BTC, ETH, or XRP you hold, rather than their current value.
After more than 10 years in the crypto market, having witnessed its highs and lows, I can confidently say that crypto remains the most exciting market I’ve ever known. However, my approach to the market has evolved dramatically over the years. From being a firm believer in technical analysis (TA) and trading, I have shifted to a long-term investment mindset. This change in perspective didn’t happen overnight, but it was a process driven by experience, data, and a deeper understanding of the market.
In this blog, I want to share my journey and explain why I now believe that investing—not trading—holds the key to long-term success in crypto.
The Shift from Speculation to Investment
When I first entered the crypto space, I was enamored with speculation. Like many, I was drawn to the excitement of trading—the adrenaline rush of buying low, selling high, and riding the waves of volatility. Over time, however, I began to see the limitations of this approach.
I started to ask myself: Is trading truly sustainable for the long term?
After years of analysis and reflection, my answer is no. Speculative trading may bring short-term gains, but it is investment that leads to lasting success. Here’s why.
Trading: A Game of Discipline, But Not for Everyone
In theory, a disciplined trader who manages risk effectively can win in the market. They set strict rules for entry and exit, and they stick to their plan no matter what. However, in practice, most traders are human. They are influenced by emotions—fear, greed, and stress—which often lead to breaking the very rules they set for themselves.
A trader might be able to maintain discipline for a few days, weeks, or even months, but eventually, emotions can take over. Just one moment of weakness, one misstep, can undo months of hard-earned gains. Even experienced traders can find themselves losing large amounts of capital during market downturns.
Investing: Consistency Over Speculation
In contrast, investing is a much more sustainable strategy. Instead of trying to time the market perfectly or trade on every dip and rise, I’ve learned that it’s better to focus on the long-term value of assets.
Investment strategies take into account fundamentals, future potential, and market cycles. By holding assets for the long term, you reduce the emotional roller coaster that comes with constant trading and give your investments time to grow.
As I’ve come to realize: "The market can live on, but traders may not. Holders will survive."
Why Investing Beats Trading in the Long Run
My change in mindset from trading to investing was driven by several realizations. The most important is that investment offers greater potential for breakthroughs, while speculative trading often results in limited success or bitter failure.
Let’s break it down further:
1. Investing Offers Breakthrough Potential
By focusing on long-term investment, you can capture the breakthrough potential of projects. This is particularly true for high-risk, high-reward opportunities like investing in large-cap coins that have dropped 90-95% in value. These coins may seem risky in the short term, but over time, they have the potential to recover and even exceed their previous highs.
Example:
Imagine buying a top coin that’s currently down 90% from its all-time high. It may seem like a loss in the short term, but if you invest with a long-term outlook, you position yourself for potential gains when the market recovers.
2. Trading Success is Limited and Emotionally Draining
While there are a few traders who can maintain discipline and manage risk well, the majority of traders struggle to maintain long-term success. Most traders, especially those with small capital, fall victim to greed and fear—emotions that ultimately lead to failure.
Even experienced traders face the harsh reality that one slip-up can wipe out their hard-earned profits. For those with limited knowledge or experience, the odds are even lower. As I often say: "The market may survive, but many traders won’t."
3. Holding for the Long-Term Requires Faith and Vision
If you choose to hold, you must have faith in the future potential of the assets you invest in. Holding isn’t just about buying at the lowest price possible—it’s about understanding where the asset can go and having the patience to wait until it reaches its full potential.
Example:
In 2017, Bitcoin rose to $19,000, and XRP reached $3. Many traders were focused on the short-term, but long-term holders who believed in the assets' potential saw gains beyond what traders could imagine. The key is to believe in the future value, not just today’s price.
The Case for Risky Investments in the Current Market
As of now, I believe it is the perfect time for risky investments in crypto. Here’s why:
1. Massive Price Drops Present Buying Opportunities
Many large-cap coins have lost 90-95% of their value. For me, this presents a golden opportunity to invest in these coins at a fraction of their true value. Technical analysis might suggest further drops, but with such significant price reductions, the risk-to-reward ratio is extremely favorable.
2. The Market Isn't Dead, and Its Future is Bright
I have strong faith that the crypto market isn’t dead—it’s just evolving. Instead of focusing on short-term price movements, I look at the long-term potential of projects and how they can shape the future of the blockchain space.
3. Current Prices Will Likely Be Surpassed
In my view, the current low prices will be overcome. That’s why I’m not obsessed with getting the perfect entry point. My goal is to invest, hold, and wait for the inevitable recovery that will come as the market matures and expands.
A Simple Investment Strategy: Buy, Hold, and Be Patient
If you decide to hold for the long term, the strategy is simple: buy, hold, and wait. It’s not about timing every move perfectly or trading on every dip. It’s about having the vision and patience to see your investment through until it reaches its full potential.
Key Takeaways for Holders:
- Have faith in your investment. If you don’t believe in the project’s long-term potential, don’t hold.
- Don’t obsess over the price you paid—focus on your target price and selling when the market reaches it.
- Think in terms of assets, not dollars. Track the number of BTC, ETH, or XRP you hold, rather than their current value.
Final Thoughts: The Future is for Investors, Not Speculators
The crypto market is full of opportunities, but trading isn’t the answer for most. For the majority of investors, the way forward is through long-term investment. Whether you’re aiming for high-risk, high-reward opportunities or taking a more conservative approach, investing offers more stability and potential for growth than the constant stress of trading.
My advice: simplify your strategy. Invest wisely, hold, and be patient. The crypto market is far from dead—it’s just getting started, and those who have faith will see the greatest rewards.
Remember, in the end, money doesn’t disappear. It simply moves from one hand to another. Make sure you’re on the winning side.