Holding Beats Trading

Sky is the limit

I have been a crypto investor since 2017 and it's been a pleasure. The truth is I have made many huge mistakes with my trading decisions so far, but I have still been able to make money in the cryptocurrency game. However, as you can understand money is never too much, so it still hurts to look back at some of my worst trading moves which cost me significant profits. Had I just decided to hold my coins instead of trading them, I would have made much more money than I actually made by performing successful trades. But it's okay; nobody has a crystal ball, and therefore, you just never know what is going to happen next.

Those very same moves I now regret could have helped me make much more money had they been correctly timed, but I guess I had to make those mistakes in order to learn from them and grow. Four years later, I am still young and hungry for more, but I'm also much more experienced regarding the markets and the way they behave, as I had the chance to witness the bull run that took place in 2017 and drove prices through the roof, but also the bear market that followed and lasted more than three years. That's right, three long years of fear, uncertainty and doubt.

Looking back to see ahead

I remember my enthusiasm during December 2017 and the fear of missing out; you could feel it in the air and it was more than enough to make you save every little dime you could get your hands on in order to invest in your favourite cryptocurrency project and make a very quick buck in the process. The bull market spoiled us all and we kept thinking the crypto market cap would just keep going up forever. Of course that is not feasible and would serve as a sign that the space was unhealthy, but the fear of missing out is very strong during the bull market and can lead you to make wrong decisions, just like the bear market can make you panic sell at a loss only to regret it later on.

And you will definitely regret it down the road if you are invested in some of the best crypto projects out there, as it is more than obvious that the cryptocurrency industry is here to stay. Twelve years after the inception of the BTC protocol, the space looks healthier and stronger than ever, and it's safe to say that we haven't really seen anything yet, as the entire cryptocurrency ecosystem is still in its infancy stage. If you think it's not, then I challenge you to just hit the street and ask random strangers whether they know anything about cryptos and the blockchain technology. You will be in for a huge surprise.

Even if you live in one of the most advanced countries of the western world, I am confident that 95% of your subjects will respond with something along the lines of 'this is monopoly money' or 'I have no clue at all about this thing'. It is sad but true that the vast majority of internet users do not know a thing about the cryptocurrency industry nor the technology behind it all, and even though it is discouraging and serves as evidence that we need a lot more time in order to achieve mass adoption, it is also a positive sign if you are a true believer. It basically means that you have plenty of time to fill your moon bags and be set for life a few years down the road.

Pays to be patient

I am living proof that you can only make money in the cryptocurrency ecosystem if you pick one of the top horses and decide to hold your stake and be patient. I was completely inexperienced during the first year of my involvement in the crypto game and made huge mistakes, but I still managed to take significant profits which I used in order to improve my position in some of my favourite projects during the bear market that followed. If somebody like me found a way to make money in such a short period of time, I can't even begin to imagine what the big players are capable of accomplishing in the early stages of the crypto space that we are currently exploring. Or how much that will be worth in say ten years from now.

The only thing I know for a fact is that if you stay commited for the long term it is highly likely that you will drive home sweet profits, because that's exactly what the best cryptocurrencies have been doing for the past 10 years; going upwards as the years go by. You may find yourself looking to day trade and take advantage of the daily or weekly dips and peaks, but paying attention to every detail can drain you out and drive you crazy. However, it's true that if you zoom out and allow yourself to have a look at the bigger picture, then it's very easy to see the obvious trendline converging to the price chart function on a log scale. They are always going up as the years go by.

The last two years I have been actively involved in day trading, observing the different market pairs for my favourite picks and looking at the market depth of each pair in order to reach safe conclusions. The truth is that I have been able to grab gains of 30%-45% in less than two days in various occasions, but it's still a very risky hobby and one I would prefer to refrain from in the years to come. That's because I have come to realize that the easiest way to make money in the crypto game is by holding your tokens and waiting for years, and even though everybody loves a quick buck, it's always better to be safe than sorry. Day trading can give you quick profits if everything goes according to plan, but holding will definitely allow you to reap the rewards you desire with mathematical precision. It pays to be patient and comes with zero risk.

Always do your own research

Of course this is just my humble opinion based on my personal experiences in the crypto game, and certainly the kind of advice I would offer my past self if I could go back in time and change the mistakes I have made. Trading can take you places and enable you to make huge amounts of money in a very short period of time, but it's also very risky, and nothing is for granted. However, holding is an entirely different story, and a look at the all time price history chart of your favourite project is all the evidence you need. The daily dips and peaks are barely noticeable when you zoom out on a log or linear scale. And that's what you need to do when the red signs all over your screen are forcing you to panic sell and save what can be saved.

However, some of the biggest mistakes in the crypto trading game are made during the green days, so if you're not planning to stay actively involved in day trading, I would advise you to think twice before dumping your bags. In less than ten years all transactions will be digitized and the use of physical money is going to be a thing of the past, so think twice before you hit the sell button. If you don't really need the crypto money to cover life expenses and pay bills, hold on to it and watch it explode during the next ten years. Holding has earned me a lot more money than trading, and this comes from a dude who never lost money in a trade. Think about it.

I appreciate your attention,

@lordneroo

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