Last updated on January 2nd, 2018 at 12:00 am
Long term investing refers to an investment strategy that focuses on buying Bitcoins now and waiting for them to appreciate over long periods of time. A long term investor might hold onto an investment for thirty years or more! We will be blunt, right now this is not the preferred method for many investors. With market prices swinging by several dollars or more in a given day, many investors are more interested in making money in the short term. Still, this doesn’t mean that long-term investing can’t be a great investment strategy.
Most long-term investors don’t set any specific end date or price point at which to sell Bitcoins. Instead, they invest and sit back and watch as their assets appreciate over time. Long-term investors are more interested in the accrual of value overtime than turning profits week-to-week, or month-to-month. This doesn’t mean that long-term investing can’t reap huge returns. Far from it. If you have investing 100 dollars in Bitcoin back in February of 2011 when they were trading for about 1 dollar, they’d currently be worth more than 100,000 USD. And remember, Bitcoins were selling for over 1,000 BTC per dollar in 2009. Imagine if you had invested 100 USD then and held onto your Bitcoins!
Compared to short-term investing, the specific buy in and sell out points are generally not as important. Price differences of a few dollars generally do not matter as much. Of course, if Bitcoins appear to be building into a massive bubble, you shouldn’t invest no matter what your investment strategy is. At the same time, if Bitcoin prices look like they are depressed and primed for a rebound, now is a great time to invest, no matter your strategy.
If you are looking to make a long-term investment, the most important question you have to ask is if the investment looks like it will accrue value over time. If you firmly believe yes, then making a long-term investment could be a great choice. You should do research, of course, and carefully outline why the investment will gain value over time.