The goodness of long-term investing in cryptocurrency

[Mr. Magkaisa]

Good day to all the community here in this forum, Do you want to know why cryptocurrencies are good for long-term investment? Why is it okay to invest in the long-term and what are the strategies and criteria to choose cryptos that we can invest in?

What is long term investment?

Generally, long-term investment is a form of trading strategy that seeks to profit by holding an asset for more than three years. Standard long-term investment occurs when company X holds a significant investment of company Y without having a majority of voting shares. The purchase price is considered a balance sheet item, while the short-term investment stocks are related to the company’s profit/loss. The sale of long-term investment would ordinarily be classified as other comprehensive income, not related to direct profit/loss.

5 steps for investing in cryptocurrency

1. Understand what you’re investing in.
2. Remember, the past is past
3. Watch that volatility
4. Manage your risk
5. Don’t invest more than you can afford to lose

Reference: https://learn.bybit.com/investing/guide-to-long-term-crypto-investment/
Reference: https://www.bankrate.com/investing/how-to-invest-in-cryptocurrency-beginners-guide/Benifits of the Long-term
My additional thoughts

Why is long-term investing good?

* Less Risky - Because you have only invested in the market for the long term, You just term or hold, there's nothing to get rid of and you can't opportunities will miss out on the market because they have invested, it's just you The others are in and out of crypto, so of course, if you are outside of crypto, you will miss the other opportunities here.
* More economical - Of course, if you often trade in cryptocurrency, you will spend a lot here, such as trading fees, credit card fees, and so on. If you're just in prison, you don't care about such things.
* Less stress - A lot of people invest in crypto but they are always stressed or too emotional about what is happening in cryptocurrency. Like when the value suddenly increases, it's very fun, but when the price suddenly falls or drops in the market, it's very sad and sometimes even depressed, which is a normal reaction and there's nothing wrong with it, but of course, it's also difficult you always feel that you might get sick, so to reduce stress, you should make a long-term investment, like buy and forget or buy and hold or maybe after you buy you will not have any attachment to the cryptocurrency that you will buy, no first you have to check or you should check there only once, or when you have your target you just sell there, it's that simple.
* Easy - So, because it's less stressful, this kind of investing is easier, you don't need to be an expert or a good trader. You know how to analyze, signals, charts, and more. That's why you don't need those because you will only invest once, or if you always do something simple and that is just buying buy.
* Compound Return - So if you are a long-term investor, your crypto money will also grow more if you do this method over time, especially if you stake in platforms that give you a return every week or month, or year, it seems that your crypto is increasing passively.

These are just a few of the reasons why it is good to invest in crypto when it comes to the long term. Because historically speaking, it is also good to appreciate the value of cryptocurrency like what happened with Bitcoin.

And another thing that can be done if you do long-term investment here is that if you have extra money, you can also do the DCA (Dollar Cost Averaging) style method, this is investing in crypto every week every two weeks depending on you because the purpose is only This means that your cryptocurrency investment should be consistent so that you can increase your holdings of crypto and at the same time you can avoid the volatility of the market. Many well-known investors do this.

Crypto Criteria for Long-Term Investing

1. Utility - The crypto you buy must be useful, what is it? What does that do? Is there a problem? Or what is it possible to do in the future?
2. Technology - Since crypto seems to be our future currency or otherwise it will still have a big part in our future. So we should get what before we get the crypto technology that we choose for the long term. Do you think that crypto technology can help, or will it be adopted by countries or people, or businesses?
3. Market Share - It's also important that the cryptocurrency we buy is in the top market, for example in the top 20 altcoins like that. Like many investors, it is popular and many institutions, companies, and or well-known personalities invested here.
Although in the stock market it is the same, usually those at the top of those good stocks or blue chip companies are good for long-term investing.
4. News and Updates - It's also important to know what's going on with the crypto we are going to buy, are there any updates? Upgrades? What do devs or teams do? Are the cryptos so beautiful, such things? What are the perceptions of the market or the people in that crypto, is it okay for them to use it, and do they have no issues, problems, cases, or red flags?
5. Developer and Team - Although it is also a great idea to know who is the person who maintains its team or devs. Although many cryptos are anonymous developers or teams. But if we can get to know it better then.

So, these are just a few of my criteria when it comes to long-term investing based on my views and opinions, if you have added a cape to the expansion of our knowledge here in cryptocurrency you are free to give by answering this topic.

Good day to everyone.

[jackg]

There's still a hit of risk if you go for the lower end of the amount of time you invest imo (unless you're always waiting for a profit, 3 year and 4 year timeframes can bring losses (if you buy an all time high - normally around the time bitcoin enters the news).

No altcoin will be as safe of an investment as bitcoin too.
It's also handy to use what you've invested in if you can or stay up to date on any critical news about it must in case something big happens that needs your response - but I'd d doubt that'll happen.

[Anonylz]

If we take top market as one of the criteria for long-term investment then the Luna and ftx saga will affect several investors. I do agree on long-term investment because it is the most beneficial to gain the most profit.
It is important to know and understand the project you are investing into, after what happened with Luna and ftx, it becomes even more difficult to know which project besides btc  that is worth the long-term short.
Am having trouble trusting alts this day's, the only few I can see worth the trouble are eth, bnb, the rest looks untreated imo.

[Dickiy]

Why is long-term investing good?

* Not Risky - Because you have only invested in the market for the long term, You just term or hold, there's nothing to get rid of and you can't opportunities will miss out on the market because they have invested, it's just you The others are in and out of crypto, so of course, if you are outside of crypto, you will miss the other opportunities here.
* More economical - Of course, if you often trade in cryptocurrency, you will spend a lot here, such as trading fees, credit card fees, and so on. If you're just in prison, you don't care about such things.
* Less stress - A lot of people invest in crypto but they are always stressed or too emotional about what is happening in cryptocurrency. Like when the value suddenly increases, it's very fun, but when the price suddenly falls or drops in the market, it's very sad and sometimes even depressed, which is a normal reaction and there's nothing wrong with it, but of course, it's also difficult you always feel that you might get sick, so to reduce stress, you should make a long-term investment, like buy and forget or buy and hold or maybe after you buy you will not have any attachment to the cryptocurrency that you will buy, no first you have to check or you should check there only once, or when you have your target you just sell there, it's that simple.
* Easy - So, because it's less stressful, this kind of investing is easier, you don't need to be an expert or a good trader. You know how to analyze, signals, charts, and more. That's why you don't need those because you will only invest once, or if you always do something simple and that is just buying buy.
* Compound Return - So if you are a long-term investor, your crypto money will also grow more if you do this method over time, especially if you stake in platforms that give you a return every week or month, or year, it seems that your crypto is increasing passively.

These are just a few of the reasons why it is good to invest in crypto when it comes to the long term. Because historically speaking, it is also good to appreciate the value of cryptocurrency like what happened with Bitcoin.

And another thing that can be done if you do long-term investment here is that if you have extra money, you can also do the DCA (Dollar Cost Averaging) style method, this is investing in crypto every week every two weeks depending on you because the purpose is only This means that your cryptocurrency investment should be consistent so that you can increase your holdings of crypto and at the same time you can avoid the volatility of the market. Many well-known investors do this.

Crypto Criteria for Long-Term Investing

1. Utility - The crypto you buy must be useful, what is it? What does that do? Is there a problem? Or what is it possible to do in the future?
2. Technology - Since crypto seems to be our future currency or otherwise it will still have a big part in our future. So we should get what before we get the crypto technology that we choose for the long term. Do you think that crypto technology can help, or will it be adopted by countries or people, or businesses?
3. Market Share - It's also important that the cryptocurrency we buy is in the top market, for example in the top 20 altcoins like that. Like many investors, it is popular and many institutions, companies, and or well-known personalities invested here.
Although in the stock market it is the same, usually those at the top of those good stocks or blue chip companies are good for long-term investing.
4. News and Updates - It's also important to know what's going on with the crypto we are going to buy, are there any updates? Upgrades? What do devs or teams do? Are the cryptos so beautiful, such things? What are the perceptions of the market or the people in that crypto, is it okay for them to use it, and do they have no issues, problems, cases, or red flags?
5. Developer and Team - Although it is also a great idea to know who is the person who maintains its team or devs. Although many cryptos are anonymous developers or teams. But if we can get to know it better then.

So, these are just a few of my criteria when it comes to long-term investing based on my views and opinions, if you have added a cape to the expansion of our knowledge here in cryptocurrency you are free to give by answering this topic.

The criteria you mentioned can indeed be said to be complex in starting cryptocurrency investments whose goal is to get long-term profits with some of the considerations you mentioned, but still investing in crypto has a very big risk.

What I experienced was that no matter how good Fundamentalist a crypto project is, which offers so many utilities and has a sizeable market, we never know how long the project will be used by users and what kind of management they use including financial management, historically they rise because of Hype sometimes and fades away slowly so it goes bankrupt without us noticing because we don't have time to pay attention to projects all the time.

What I fear the most is when someone hacks the project to a loss, forces them to unilaterally close and limits the liquidity of their customers.

As far as my experience in Investments goes, Bitcoin is the best of the best and history has proven that.

If you still want to invest in Altcoins, instil in yourself, you must be prepared to lose money that you believe will be rainbows in the future.

[so98nn]

The theory is good but there is a catch! We do need to understand that the market which we talking about is highly volatile. Meaning, it’s not like general market (share and stocks) where you can see fortune five hundred companies working day and night on a product or services and thus making us realise whether it is going in the right direction or is it going in the wrong one.

Based on that assumption we can actually make decision on long term investing or short term.

For the volatile market along with the fact that we don’t even know who is behind the project or who is running the finances it’s always a risk for long term investment.

[Ziskinberg]

Generally, if we talk about investment whether it was long-term or short-term still it corresponds to risks. But the good thing about holding term especially if you are investing potential coin like Bitcoin it removes your stress from what you have seen in daily market changes because you know that your invested coin will grow in the future.

But why do many people make it hard and become impossible? It is because holding long-term is not their comfort, and worries still in their mind that influence their decision and weaken their courage.

[avikz]

I don't know what others think, but I feel that cryptocurrency is not an asset for long-term investment due to its extreme volatility. Even if we need to use it for the long term, use a very small portion of it. Cryptocurrency is mainly an asset where your position needs to be validated constantly. Get in at the right time, get out at the right time, and re-enter at the right time again. That's what should be the ideal workflow of crypto investment unless and until you have cryptos hoarded since 2009.

I always try to re-position myself in the crypto market rather than keeping my coins idle. I sell when the market is hot and high, I re-enter when it's cold. I make profit along the way!

[bittraffic]

I don't know what others think, but I feel that cryptocurrency is not an asset for long-term investment due to its extreme volatility. Even if we need to use it for the long term, use a very small portion of it. Cryptocurrency is mainly an asset where your position needs to be validated constantly. Get in at the right time, get out at the right time, and re-enter at the right time again. That's what should be the ideal workflow of crypto investment unless and until you have cryptos hoarded since 2009.

I always try to re-position myself in the crypto market rather than keeping my coins idle. I sell when the market is hot and high, I re-enter when it's cold. I make profit along the way!

The volatility will make them very cautious of the market especially when the bull run reaches its peak, they all wanna get out. For short-term investors, I think they get out, leave the market and wait for the prices to start claiming again.

For long-term investors, leave crypto and DCAing or buy the coins and tokens that they think had bottomed because they accumulate more of it. The investors of ETH and BTC who bought at a price of less than $5, may have more in thier holdings after every cycle.

[Gozie51]

Do you want to know why cryptocurrencies are good for long-term investment?

Remember you are talking about cryptocurrency for a longtime and not specifically on btc. For cryptocurrency I don't think there is much of a difference between short and long time investment. Take the example of ripple, it is almost like stagnant after a long while and gaining little that will see it slightly over $1. Moreover I have some shitcoins for a while now and they never increase but only decrease and some get delisted. I can only believe in bitcoin for a longtime, etheruem or binance because of the exchange.

[passwordnow]

It should be specified with bitcoin first and then choose the altcoin you think is good for the long term. But, there are many choices that you and others can say. But for me, personally, my long term investment in altcoins are Ethereum and BNB. I'm trying to hold others too but they're like just the typical lottery type of altcoins so that's okay to lose with those. And for the main choice, as per my experience, it's none other than bitcoin. People will argue about it that there are other altcoins that are more profitable than it but still, the main topic is all about investing in crypto so, choose your crypto.

[kryptqnick]

I think the quoted tips for long-term investment make sense, aside from the fact that people still judge the future by the past because there's no other reasonable thing to build one's predictions on. As for the additional thoughts, I wouldn't call long-term investment 'not risky', as there's a big risk if it's an altcoin that can just crash and never come back, but considerable risk with Bitcoin as well because nothing ensure that there won't be one bear market from which it never recovers. And then on compound return, staking cryptos on a centralized platform involves a big risk which was demonstrated well by FTX. Maybe those small interest rates aren't worth it.
And overall, I'd just stick to Bitcoin to minimise the risk.

[dimonstration]

I disagree on using the long time frame to reduce the assessment on investing in crypto. Not because you are holding for a long time doesn’t mean you are investing on less risky way. We are talking about e years here which is very long and there’s a tons of opportunities to make profit using rather than wait than long for an investment that doesn’t guarantee a huge return. Many project even the old one sometimes suffers suffer a huge loss for that long period of time.

Luna is the best example here. Luna is very strong blockchain project during 2019 but still fall to current worthless value due to there CEO incompetency. If you manage to buy this coin and hold long term you will suffer both money loss and wasted time.

The long time frame is probably applicable only on Bitcoin to validate the idea of less risk on longer time frame investment due to its proven price history for a long time.

[inthelongrun]

* Not Risky

Maybe a better term is "less risky". Although we do know how volatile cryptocurrencies are compared to stocks, forex, gold, and real estate, at least responsible long-term investments negate the effects of constant ups and downs in the market. But I will never call long-term cryptocurrency investing not risky. If it is not risky at all then there is no need to create tips like watching its volatility and investing only a portion we can afford to lose. If there is no risk, then we can just all-in invest all our funds allocated for long-term goals.

[lionheart78]

Cryptocurrency is indeed good for long-term investment but not all of them.  we must filter among the newly launched and old crypto projects which one is promising and has the potential.  The condition of the cryptocurrency market is still unstable so we must do our best to point out which one will stay and which one will turn scam and run away with our money.  It is quite difficult to point them out perfectly because some scam projects are too good in mimicking the good one.  While other projects, like FTX and Terra Luna, appear to be promising and stable but collapse in just a short period of time.  So I think we need to be vigilant, and updated, and know when to exit when investing in cryptocurrency even though our main goal is to hold them for the long term.  

Among these cryptocurrencies, I can only see one that has proven itself several times and is really good for long-term investment and that is Bitcoin.

I disagree on using the long time frame to reduce the assessment on investing in crypto. Not because you are holding for a long time doesn’t mean you are investing on less risky way. We are talking about e years here which is very long and there’s a tons of opportunities to make profit using rather than wait than long for an investment that doesn’t guarantee a huge return. Many project even the old one sometimes suffers suffer a huge loss for that long period of time.

I agree and think that most cryptocurrency is not suitable for long-term investment, but there is one that can provide us a profit when holding it long-term.  Bitcoin has proven itself to be a good investment for years of holding.  So we can just ignore all cryptocurrencies except Bitcoin for a long-term investment.

[Yatsan]

* Not Risky

Maybe a better term is "less risky". Although we do know how volatile cryptocurrencies are compared to stocks, forex, gold, and real estate, at least responsible long-term investments negate the effects of constant ups and downs in the market. But I will never call long-term cryptocurrency investing not risky. If it is not risky at all then there is no need to create tips like watching its volatility and investing only a portion we can afford to lose. If there is no risk, then we can just all-in invest all our funds allocated for long-term goals.

Every investment has risk especially with this technology wherein cryptocurrencies are having too volatile market value. The prices move from time to time and that includes both upward and downward direction. Long term investments might save an investor from a higher degree of worry because if you are in short term investment, you'd be more attended with every pump and dump unlikely with long term investors which are setting timeframe of when to enter or exit. But as mentioned, risks are still there. Long term investments are also prone to huge losses because you won't be pulling out your asset on a small dump, problem is there are times red marks are becoming long and continuous, so be cautious of it if you are planning to engage with long term investment.

[Jating]

* Not Risky

Maybe a better term is "less risky". Although we do know how volatile cryptocurrencies are compared to stocks, forex, gold, and real estate, at least responsible long-term investments negate the effects of constant ups and downs in the market. But I will never call long-term cryptocurrency investing not risky. If it is not risky at all then there is no need to create tips like watching its volatility and investing only a portion we can afford to lose. If there is no risk, then we can just all-in invest all our funds allocated for long-term goals.

Yes, that should be the correct term, every investment has risk involved, and so much with crypto because of it's volatility as compare to stocks and other assets. The thing with crypto though is that it's cyclical, meaning that every 4 years we might see a good returns on our investments.

And long term? it could be defined as 1 year or 4 year or 10 year hold, so it's really up to the individuals on how he/she will look at what long term investment mean.

For the criteria for altcoins, it's going to be difficult as we can see even one of the biggest FTC collapses.

[Viscore]

Generally, if we talk about investment whether it was long-term or short-term still it corresponds to risks. But the good thing about holding term especially if you are investing potential coin like Bitcoin it removes your stress from what you have seen in daily market changes because you know that your invested coin will grow in the future.

But why do many people make it hard and become impossible? It is because holding long-term is not their comfort, and worries still in their mind that influence their decision and weaken their courage.

As much as you decide to invest, you are also dealing with its risks. So if you chose those altcoins and meme coins over the potential bitcoin, it will only heighten the risk and increase your chance of losing. That is why if you go for long term investment, you will lessen the risk but increase the potentials of yielding higher rewards. And investing for long term with a much profitable and safest investment in crypto which is bitcoin, with 3 to 4 years of hodling, you can expect maximum profits given that long period of time.

[dothebeats]

While generally safer, it still carries risk with it, although with that time-frame you could easily bypass any such losses along the way since you will not sell during those periods anyway. Also, if you're planning to invest long-term, your buy-in on the crypto you wanted will be averaged, so that once you decided to sell all of those you'll easily get an idea whether to sell it now for less profit or keep on holding on. Risks will always be there, though time acts as a cushion to dampen the fall IMO if the crypto you invested in turned out not to be as good as you initially expected it to be.

[n0ne]

While generally safer, it still carries risk with it, although with that time-frame you could easily bypass any such losses along the way since you will not sell during those periods anyway. Also, if you're planning to invest long-term, your buy-in on the crypto you wanted will be averaged, so that once you decided to sell all of those you'll easily get an idea whether to sell it now for less profit or keep on holding on. Risks will always be there, though time acts as a cushion to dampen the fall IMO if the crypto you invested in turned out not to be as good as you initially expected it to be.

Long term holding gives an outlook of being on the safer side, yet there's risk as mentioned. The market is completely unpredictable, which could drag the market bullish or bearish in no time. So, if we've invested at the peak then sure this is going to be high risk even at the bullish market. Based on how we react to market changes the goodness of the market can be experienced.

[Silberman]

...

Why is long-term investing good?

* Not Risky - Because you have only invested in the market for the long term, You just term or hold, there's nothing to get rid of and you can't opportunities will miss out on the market because they have invested, it's just you The others are in and out of crypto, so of course, if you are outside of crypto, you will miss the other opportunities here.

...

While I think this is a good post this is the part I do not agree with, long term investing is less risky but it still carries risk, for example if you invest in a shitcoin then it does not matter that you hold it for the long term since at some point during that time it will crash to zero, and even if you hold good assets like bitcoin or gold which will most likely never crash that hard, there is still a risk as it can take a long time to recover your initial investment, and if during that time you are forced to sell by some unforeseen circumstances then you will lose money, but other than that you did a good job with this post.