In a market as dynamic as the cryptocurrency market it can often be difficult to resist impulsive action. I have struggled to adjust myself to being a long term thinker in general, this gets emphasized in the market.
I have friends who are talking about holding for 4-5 years minimum and when I end up making an impulsive swap based on news, I feel as if I have made a mistake (often times that is true).
I have personally made it a goal to adjust my mind frame and look to think longer term as I have seen that a majority of real success in the crypto world has come from Holding long term. I know there are pumps and people realize profits every day, but the idea of dollar cost averaging and creating consistent savings through crypto.
I've decided to make a small list of positives regarding long term thinking in investments to try to get it through to myself! I hope that this list helps you plan out your investment strategy and help you create healthy long-term thinking.
1. Price Fluctuations Don't Matter
Is the price of Bitcoin down 15%? Oh... well whatever, I'm not selling it for 5 years anyways, it'll come back... and then it miraculously does!
Back in 2017 I found myself panic selling my Bitcoin, Ethereum and Litecoin that I had been accumulating. Had I just held onto that, they all would be worth as much or way more than they were at the time.
We always hear people saying (and find ourselves saying) "I wish I had just held onto X" or "Why did I sell X? If I held it, it would be worth Y amount right now!". Well if we all exhibited long-term thinking and set price targets to eventually receive, the short-term performance would not have changed our holdings.
If we want to stop saying this to ourselves, we need to make long-term plans and hold on through the ups and downs. Easier said than done of course!
2. Dollar Cost Averaging
I have written about this in the past, but still think that it is the optimal strategy to take going forward (NFA). By adding a set dollar amount of whatever token you are getting on a scheduled basis (i.e. every week or every month), the price does not necessarily matter. What matters is the average price over that period of time.
With a market as volatile as cryptocurrency, dollar cost averaging pretty much assures a few high buys and a few low buys when looking at token price in USD. Instead of trying to buy the absolute bottom or sell the absolute top in the short term, a long term growth strategy is just to be consistent and know what your eventual goals are.
3. Cut Through The FOMO Trends
No hate to DOGE holders, I honestly hope it goes to the moon so you can reinvest it into the rest of the market!
If you are looking to buy a token, you should always know what you are getting yourself into (I would say this is common sense, so call it advice if you'd like). When researching a token, short-term thinking places a large emphasis on the price of the token and the trajectory of the market-cap for the ecosystem.
Long term thinkers can skip over trends that are short-term even if they are offering huge short term gains. Instead of getting wrecked by a pump and dump, a long term thinker can seek out projects with real utility and begin accumulating there. At the end of the day we really need to think about what the market will look like in 5-10 years or beyond. I don't think we will see too many meme coins in the distant future, but rather we will see the tokens that are helping to push for financial and human freedom finding success.
Long term thinkers know this and will want to position themselves well for the market of the future. Cut out all the noise.
Conclusion
I will be adjusting my thinking to 5 year holds from this point on. I don't necessarily recommend taking what I said as facts. Rather, I hope that what I said has provoked some thoughts in your mind and made you think about finalizing your own investment plan based on your own research!
Long Cub
Long Leo
Long Hive
Long BNB
Long BTC
Not financial advice!!!
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My name is Rob and I am a college student doing my best to get involved in the crypto world. I have enjoyed blogging thus far and thank you for reading my article! Give me a follow and let’s build the community together through consistent engagement.