Ever since Elon musk has been sabotaging the crypto industry. Less people are believing the power of the decentralization. More people are thinking that if Elon musk can manipulate the crypto. So can any other party that controls the code and market.
This is true. There are many crypto blockchains which have the open source teams but some have it closed source. Some are open only for the VC exits and some are alive as long as the community and VC funding comes into their blockchain.
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Why Short Term
A lot of blockchains have dependency on the Elon musk like influencers and they don't have any use case. Like those are dependent on other chains for their price. This makes the long term prospect of the blockchain pretty limited.
If you are invested into such type of the blockchain or tokens, then your focus has to be short term. You should always clear your logs when the market is in favor of that token. And you have to sell the assets.
The reason being staying invested in every crypto that you believe in would lock you into every blockchains future forever and you would be forgetting it's basic usage. The crypto is a means to an end. And not use it to fund someone else's lifestyle.
Why sell when you're in Profit
The way crypto works is that the people who are invested into the coin take out the profit and exit the market. When you stay invested in HODL mentality forever you end up funding the exit for someone else.
This is where you have to sell the crypto when you see the asset into the profit. That is what most of the people are doing lately. This is one reason you should sell when you need or when you think profit is enough.
Crypto is Short Term
No matter what people tell you. No matter what people spin up the story. Some crypto coins are short term. You have to make money and exit out of it. You are not supposed to be loyal towards it like some country or religion.
Crypto coins are developed every day and you can exit or sell when you need the same. It is short term investment for many and you should treat it the same.
Some may argue that crypto is changing their lives, it's decentralized and all. But imagine if one Elon Musk can manipulate one coin to go in top 10 and damage the true decentralized coins. You can imagine what govt can do to those as well.
How You Should View Short term Investment?
Think of the crypto as trader in forex or stocks or like any other trading investment. If you notice the potential for profit, then hold for enough time. And sell when you see the profit.
Keep loyalty, keep the "teachers pet" aspect towards the coin away from the short term investment. As long as you are invested someone else can make profit. So HODL forever mentality should not be approached.
Remember that in life some investments are short term and one should keep them that way. You can't make them long term based on your assumption and still expect to stay in the profit.
Life doesn't work that way. And neither does the crypto market.
