Entering a market in the bull run and accepting all the red days with your assets does not bring you a good sum of money as you miss the opportunity to trade your valuable asset with USD while you can make great gains. Thus, only being a holder comes up with inner problems such as losing lots of opportunities. Never go against the market and know when to leave it!
I did not want to trade my valuable NFTs and coins at All-time High levels. In return, I have at most 20% of what I could have had today. This is a hard-learned life lesson for a holder. I've been expecting better market conditions for more than 500 days. This is not worth it to endure the psychological and financial war while *you can take profit and invest in markets that are in an uptrend.
Investment, itself, is hard for those who don't invest at all but there are also some problems for the ones that only invest in a specific market or a project. Limiting your investments to only 1 market may end up with a melt of your money in inflation and some wrong investment decisions in bear market and consolidation phases.
Multi-Market Investor Mentality
If a person who only invests in gold and silver, he will be able to save the purchasing power in the long term with no doubt. Yeti we all are aware of the fact that the prices of gold and silver are kept under control. Imagine you put all your money into gold and silver for 10 years. Meanwhile, only being holder will give birth to missing at least 2 or 3 bull market times to increase your dollar amount.
Nobody thinks about what opportunities are also missed as a long-term holder. Let's go with the same case: If this person had allocated around 15% off the investment portfolio for stock markets and 15% for crypto investments, the result would be even higher earnings because both markets skyrocket when their cycles are in the phase of bull run.
They also need to remember that when you buy stocks, you become one of the shareholders of the earnings of a certain company. Also, when you invest in Bitcoin, Ethereum, or top coins, you become an early adopter. Thus, putting all your money without focusing on the cycles might be less effective and an invisible enemy for your portfolio. That's why we do not just hold and diversify our investment!
Semi-hodler but Long-term Believer
This can be the last form of wise investor's mentality in the crypto ecosystem. This market is a place where you can "easily" make 10x or 100x with your wise investments. This takes ages to achieve in the stock markets or investments in mutual funds.
However, as the volatility and earning opportunities are abundant in te ecosystem, the illusion of earning bigger is also more attractive. The illusion might be as severe as getting liquidated in your position because both of them end up with the same sad story.
"Put your money where your mouth is". In crypto:
- Layer 2 projects (Arbitrum, Optimism)
- Real World Assets
- Cross-chain Projects
- GPU / AI (Render)
- SocialFi (Hive, LeoFinance, Debank)
- GameFi (Splinterlands, Illuvium)
- Decentralized Leveraging Platform (dXdY, GMX)
These are the new trends. In the accumulation phase, I am adding them to my portfolio while they are cheap. Yet, I should not be emotional not to trade these precious coins when we are at the top of bull market.
If I had sold my BTC when I realized that $64K was top for BTC, I could have bought 3x more BTC and other coins now!*
Do not be afraid of trading your assets. Sell 1 BTC in the bull market and buy 2, 3, 5 BTC when you are getting closer to dip (Dollar Cost Average). Being a holder makes your budget smaller. Be a semi-hodler (trend-hodler) and use your funds in other markets until crypto starts another cycle.
Hodlership limits your vision, earning and learning opportunities. When the time comes, you need to give a break for your holder mentality to catch the opportunities on other markets.
What do you think about this investor profile?
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Hive On ✌🏼
