Thinking is hard and here is why you shouldn't do it for crypto investments
If you are like me, you became involved in cryptocurrency "investments" early on with an understanding of the importance of the blockchain. I understood the value of Bitcoin and other coins early on, and figured that one day I might see a $25,000 BTC, or even a $50,000 BTC. It was for this reason that through every price hike, I never sold. I rarely watched the charts, and usually relied on others to inform me freaking out about the brand new high. Times have changed however and now days, people invest in crypto because they see friends or family investing and making significant profits. This latter type of investing however leads to a type of mindset that is varied from that which I had adopted.
If one invests in a cryptocurrency, they may have some insight into what might increase significantly later, but the question of understanding why is a factor that is not fully appreciated by many. I once overheard a wise big money CFA respond when asked "how do I make alot of money?", by saying "a good investor understands his long investments". This struck an accord with myself as I never sold my bitcoins, I only ever purchased more. Without the aforementioned acknowledgement, one might be keen to watch Gdax at every waking moment, which might be fine, but results in an unwanted symptom. The symptom is the notion that you can predict when the price is about to fall or rise, and as the entrepreneurial investor that you have now become in the crypto market, you feel that you can maximize your dime by selling and buying back. Or worse, you have found yourself in a panic sell. Well Both cases will inevitably result in you losing coins. If you invested in the asset because you believe it will appreciate greatly, you are always shorting it by selling it. Never short an appreciating asset.
The best investments are the ones you can forget about. Let other people or the whole world be the one to inform you how successful it became. I hope I gave some insights here.
Never sell your appreciating assets . Thats the best investment quote i have ever heard. Not that i hear plenty of investment quotes but that it sounds meaningful. By comparing the graphs of major cryptos, its always an uptrend. So why sell so soon. Thanks for the investment advice. I really appreciate it
Thanks for saying that! I came up with it on the spot, but after all these years of being in Bitcoin, I have learned to make concise true statements lol. No problem, and thanks for the comment!!
Yes, yes yes.
Totally agree @extrospect!
By the way, is it worth buying those ranks #1-#50 crypto coins for long investment?
Haha, love the enthusiasm!! it probably is but read my article I wrote (I gave a link above to @wekkel). The reason this is important is storing the coins. it would be profitable 100%, except you arent gonna be able to get all those coins stored securely (or probably wont).
For strong hard investments I would recommend steem in your steemit account. Bitshares which i show how to secure in the other article, and ethereum as well. EZ to store as well. Lemme know if you have questions bro! Ill be happy to help you out.
Also EOS is coming and that shit will be a money machine.
Okay tell me about EOS. Thanks!
It is Dan's third coin. He created bitshares and steem. It is a big deal. You will be able to purchase it with ethereum or bitshares. It drops this summer. It is going to be released like this. 20% of the coins will be released within 5 days, and the remaining 80% will be released over 8 months, so no way can you totally miss out.
I'm poor. Can I can buy just worth $10?
Definitely! I'm sure it will be very profitable.
Where to buy?
No one knows yet. Not when or where.
Most definitely. Stay in for the long haul, and don't let something that is supposed to benefit you become a source of constant frustration and stress.
Thanks for the comment, and you are spot on.
If more people would heed this advice the amount of stress they unnecessarily take on would be dramatically reduced. The idea of constantly watching the market will keep you up at night. It will have you checking your phone constantly instead of enjoying the moment. Great advice Extrospect! Looking forward to more content from you.
Cheers!
I appreciate the comment! But let's be honest, who doesn't love waking up in a cold sweat checking Gdax or Coinmarketcap graphs :). I only sometimes do it, but I know that to be an exception.
Haha yeah its happened to me a few times!
I don't because my investment is diversified and long term.
Just don't lose the wallet or the public Keys! I actually wrote up an article that might be really helpful! check it out if you have time https://steemit.com/steemit/@extrospect/how-to-protect-your-cryptocurrency-invests-a-fundamental-guide
Great post! I agree with you, when you can forget about and investment and you can let it run without any hesitation is because you have the information and the confidence of the project you're investing in, that's a great investment.
Thanks! I didn't get into it in the post, but it is for the reasoning that I proposed that what then becomes really important is knowing that your investment is a good one. Steem obviously is a very good one, but some people might consider an investment in doge coin for instance to be a good long term bet. Without realizing that because of the mining inflation of the coin, they will get diluted out within days practically.
Definitely can agree with this. Watching your investment constantly will stress you out like crazy. Crypto is something best forgot about until later, it has so much potential.
One way that I look at it is that the whole of the cryptocurrency market cap is about 110 Billion, but that is actually minuscule for any world market. There is no world market exchange with such a small market cap. It will be small if it is 10x larger still.
Right on, and we are only at the beginning. It's grown so much so quickly that there's no telling where the market cap could end up in 2-3 years down the road. All it takes is a few large companies to invest and boom the market cap could easily double in such a small market.
And the fact that the blockchain will take over the world because of increased efficiency! And hopefully it will be Graphene based! :)
the people that made the most on bitcoin are the people that forgot they had it
That is exactly right! Thanks for the comment. I knew I had it but wanted to forget about it so I could have a huge smile later, which I still have :p!
awesome thoughts ; I feel that way about btc, gonna take the longview
Hey I appreciate it. I agree with btc for sure. Depending on how many you have, you can parlay a bit into say Steem or Ethereum or Bitshares with pretty good results in years to come. This is to help diversify your "profits" into investments.
In stock market language, the saying is that you 'should let your winners run'. Selling an appreciating asset too soon is a big mistake.
I don't know stock market language, I'm a psych major, but spot on. And that's what I'm saying. Thanks for the comment!
This is how it works in the stockmarket for sure. I want to test this out in the crytomarket, because the cryptomarket acts 10 times faster (Just my observation, not a fact). So I want to start out soon, trying to slowly multiply a small amount of money, say 8% a day and see if that is possible. But I'm not touching my long term investment, because that is what I truly believe in.
Good call. It does seem to act many magnitudes faster than 10 even :P.