Why I Don't Trade Bitcoin in the Short Term

Bitcoin trading is risky, especially if you are not a trader. Taking a long-term, manual approach is a low-key strategy.

When I started investing in Bitcoin (BTC 0.88%) I already had the idea that I should also learn to trade. It took me three years to realize that this was not the case. Not only am I a businessman, but I'm a really bad businessman. Every time I tried, it ended somewhat destructively because I let my emotions rule my business decisions.

Any professional trader will ask you to write a system of trade rules and follow them. Although I had the right advice, applying the advice correctly was a very different matter. Finally, I came to the realization that I should not trade.

A long time horizon

Part of the pressure I felt about trying to trade the bitcoin was the short-term fluctuations. I was very frustrated with the downward trend and very optimistic about the upward trend. In other words, when the bitcoin was going up, I thought it was going to the moon. When Bitcoin was going down, I thought it was going straight to zero. Even though I feel like I'm going through this phase of unfamiliarity, I still feel that my emotions have the potential to affect my decision-making skills if I try to trade again. That's why I chose to keep the long-term horizon for investing in bitcoin.

In a sense, I started with the understanding that bitcoin is a long term investment. When I first offered Bitcoin in 2015, I stated i might in no way sell it as a test to see how large the funding could be. I never thought investment would work so well. Now I have the same vision for the future of Bitcoin that is $ 40,000 today as I did in 2015 when Bitcoin was $ 500. This is an investment of at least a decade, and bitcoin investors are still beginners. I don't have to risk trading bitcoin in the short term to maximize my profits, because if I wait a long time, my profits will be enough to satisfy me.

I'm sure everyone who invests in bitcoin in 2022 is still a beginner. This is because I also believe that we are the pioneers for today's version of the Internet. So what is the future of Bitcoin?

The future of Bitcoin

Of course, it doesn't make sense for me to consider bitcoin a long-term investment if I don't think it will be about 10 or 20 years from now. I first had to convince myself that the bitcoin was here to stay. After seeing how it was designed, built, maintained, and operated, I was unable to describe a reasonable set of situations in which Bitcoin falls apart. So there is a logical reason why Bitcoin will be in one form or another in the future.

Given that the cryptocurrency network on which the bitcoin resides is here to stay, where does the price go? Is it ready for further parabolic growth? Or is the development going to be more modest than here? The third option is that Bitcoin will gradually fade over the coming years. I think it's more likely that the number of people using bitcoin around the world will continue to grow. As the consumer base grows, so will the demand. Since the supply of bitcoin is strictly limited to 21 million tokens, a brief analysis of supply and demand indicates that the price of bitcoin is likely to increase in the future. I think it's a good idea for the bitcoin to at least reach the gold market cap, which is between $ 800 billion and $ 12 trillion today. Beyond that one has the best guess, and investors will have to take it one block at a time.