Investing Takes Patience and Rewards Those Who Wait
Warren Buffet is quoted as saying "The stock market is a device for transferring money from the impatient to the patient." He could not be more right with that quote. It doesnt only refer to the stock market, but many other markets as well, which is why I am writing this article today. People are screaming the end of cryptocurrency because of a large correction, but seasoned veterans knew it was coming for a while and also knew that waiting was always the goal.
Its hard to see the big picture when you entered a year or two ago and all you have seen were these massive gains ( many people are in this category), but you always need to expect that at any time the market could turn around. Even the greatest investors in the world get nervous when markets are too bullish, because there is no such thing as up without down. Corrections are healthy, even huge ones like this. They establish base levels and lows that you can move up in the future. Especially with bitcoin which tends to grow exponentially in short periods of time.
In 2008 people saw 35%-50% losses on their portfolios in a short time. Many who were retired at the time and hadnt saved enough couldnt afford to weather the storm and sold at record lows. Despite there being value in the stocks they were selling, people couldnt afford their mortgages or other daily expenses and had to cash some out. In under a decade if they held they would have increased their holdings by almost double what they had originally before the crash. The key isnt only not over leveraging yourself, but the key is also to always have a plan B and an emergency fund should something go wrong.
Right now we have seen many people overleverage themselves in crypto and now are watching as they, on paper, are losing thousands a day. You need to make sure the money you have invested is money you can afford to lose first of all and second of all, take a deep breath and step away from the computer, for a week, a month, half a year. I cant promise you that bitcoin will go up, but I can tell you what I think. I think in the long term we have another halving in 2 years which at that point will basically limit the inflation to a very small amount per year, there are many improvements coming on the way and the value proposition of a limited digital store of value still exists.
We are miles from where we were a year or two ago, not only in price still, but in how far the technology has come and the awareness around it. I dont expect it is simply going to disappear. There might be many altcoins that do disappear, but more likely than not even if there was a massive crash, bitcoin would still survive and keep chugging along. This isnt the first time people have declared bitcoin dead and wont be the last. If you cant afford to hold for a period of 5 or more years, I always tell people not to invest, this is a long game were playing. Things dont happen at the speed of light, its easy to forget that these days.
-Calaber24p
Good read. I really feel holding is the best solution right now. I'm even buying more at this time. Just a little of my check that I will throw away in the club, or somewhere else. Thanks
Thats what im doing. I dont see the market going away and even if it were passed by another coin, we would still exist and keep chugging along.
Solid advice. Things don't happen overnight and sometimes you just have to wait for it. Thanks for sharing!
I agree a 100% I wrote something up shorter and post it a 1/2 hour ago. It is a roller coaster ride. People should never spend more than they can afford to lose. It is a good time to hold and go and enjoy the day. Their is and old saying "this will come to pass". Meaning a few years from now these days will be gone forever. Upvoted and resteemed.
https://steemit.com/bitcoin/@dwolfe/bitcoin-ripple-ethereun-and-other-coins-got-you-down-don-t-look-now
That's a consequence of some bad financial decisions in the past. You should never rely on your stocks or coins investments. I think you should only invest the excess of money, not the day to day living money, but yeah people always make bad financial judgements hoping for big fast gains.
Exactly, what I was trying to say above!
I would just add this, as a conclusion to your amazing post!
You lost nothing until you sell!
This was a nice reminder of the mindset we should have regarding our investments. Thank your @calaber24p
Reading each and every one of your articles!
Thanks for all the value you give us!
,Alin
Interesting post. Referring to basic economics is certainly a common thing in doing business .. Tidal is a risk if we want to continue it .. But here maybe we want to know more about the journey crypto .. And even if the beginning of the year freefall but how big the opportunity for the month or the next date can be slightly above the current price .. And referring to the data a few years ago actually this is also not an odd thing and still normal in my opinion.
Yeah a correction is normal, the amounts we are correcting I think is what ultimately scares people. In the past going down half meant 100 dollars now its 10,000
I really appreciate your advice. All the points are very true that you have mentioned in this article.
Thanks for your kind information and suggestions.
Couldn't agree more, we just have to wait, and make decisions with clear mind :)
Exactly, people have a lot of emotions invested now, I would make any rash decisions. As long as you only invested what you can afford to lose, albeit it might hurt, you should be okay regardless of what happens.
That’s 💯 % correct.
The best investors buy when everybody else panics. I learned one thing and it already paid off many times. When I panic, at the same time it has been my trigger to buy, instead of what I usually did before, sell. I’m still waiting for one more drop in crypto.
I love this perspective, and it is not only about cryptocurrencies, but about anything you invest in life - you invest your time, your efforts (if you study, or in new relationships, or new business, or whatever), and of course that rewards are rarely immediate. And for every type of investing, the awareness of the reality and the acceptance of potential failure is the key.
I like your writing style
They said investing cryptocurrency is gamble, I say to them "no" its a game of patience. If really want to succeed you must bring with you a load and load of patience. You have to wait for the right time and the right moment. You must hodl even everyone around you let go. You need loaf and load of strong hands too.
It is still a gamble, but a much smaller gamble than people expect it to be. I think bitcoin will be here for a very long time, whether it shrinks and becomes niche or goes mainstream.