Long term investment on crypto assets

in hive-148441 •  2 months ago 

There are many regular share market traders out there. People buy some stock and keep it for years and then when the value appreciates they sell the stock. That works really well in the real world share market. But even there we cannot say that it can work 100 percent. But there is a high possibility for stable income if the choice of investment is right. If the long term investment is on the right stocks that can perform well in the long term, there is a high possibility for a good percentage of profit.

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Some of the big investors or the world follow that strategy. They mostly don't prefer doing short term investment or day trading. They might do a little but they keep those funds away from their actual investment. The day trading money is something that has no guarantee. If we are lucky and if the wind is on our side, we might get a chance to earn a decent profit. But if the wind is not on our side, day trade will not be highly favorable.

Risk in long term crypto investment

There is a high possibility for risk in long term investment. In spite of the fact that there can be a potential risk, there are many investors who have bought some crypto and have been holding it for a very long time. Even I and some of my friends bought a good quantity of Ripple and other cryptocurrencies when it was at a peak. Today the portfolio is very bad but we still hold hopes that it would turn out well in the long term.

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This is this concept of double breaking. I'm not sure if that theory is correct or wrong and I'm not going to comment on that as well. But from what I see, when the price of a cryptocurrency reaches a certain value, there is a panic situation prevailing among the investors and they call off their investment to quit with a good profit. When some people start selling and if the price starts reducing, massive selling happens and the price of the cryptocurrencies goes back to a very low value. Around 2 years back that is what happened for Bitcoin as well. I know many people who invested in Bitcoin when the price was so high. Today we haven't seen that peak yet after that. But now look at the price of Bitcoin.

This up and down movement is actually good for any investment. That's what experts would say. The flat market is not always good. They can be dangerous and they will also not excite more people to invest. But at the same time, if there is a good price fluctuation, it creates a situation where people will be interested to do more trading thus keeping the price intact. But for any investor, it is important to know when they should enter the market and when they should exit from the market. For new investors, it is not an easy task to predict but for people with good experience, this prediction is highly possible.

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