The Realities of Buy and Hold according to value investing?
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The strategy of buying coins when prices are discounted and gradually buying over time, holding until reaching target profits is called "buy and hold strategy" (Buy and Hold) or "value investing strategy" (Value Investing).
This strategy can be effective if done correctly. Here are some benefits of this strategy:
_Benefits_
1. _Minimize risk_: Buying coins when prices are discounted helps minimize the risk of loss.
2. _Enhance profits_: Gradually buying over time helps enhance profits when prices rise.
3. _Minimize market impact_: The buy and hold strategy helps minimize the influence of short-term market fluctuations.
However, this strategy also has some risks and limitations:
_Risk and limitations_
1. _Risk of loss_: Coin prices can drop sharply and may never recover.
2. _Inflation risk_: Inflation can reduce the value of coins.
3. _Legal risks_: Legal regulations can change and affect the value of coins.
4. _Holding time_: Holding time that is too long can reduce profits.
To effectively implement this strategy, you should:
_Advice_
1. _Thorough research_: Conduct thorough research on coins and the market before buying.
2. _Set clear goals_: Set clear goals regarding profits and holding time.
3. _Gradual buying_: Gradually buy over time to minimize risk.
4. _Monitor and adjust_: Monitor the market and adjust the strategy if necessary.
Regarding a time frame of 1 year and a few years, the buy and hold strategy can be effective if done correctly. However, you should remember that the crypto market is very volatile and there is no guarantee that prices will rise in the future.
_Conclusion_
The strategy of buying coins when prices are discounted and gradually buying over time, holding until reaching target profits can be effective if done correctly. However, you should remember that the crypto market is very volatile and there is no guarantee that prices will rise in the future.
p/s: Personally, I will invest in sustainable Coins like BTC, BNB, ETH, XRP, LTC, LINK in the long term!
I only allocate a small part for short-term trading to enhance practical experience and hone skills!
As someone who can win in the stock and real estate markets, however, I am not sure I can win big in Crypto! However, looking at the cycles of BTC, BNB… I believe in long-term investment based on the value of the development of these major Coins to yield fruitful seasons, while also helping me minimize the risk of market manipulation!
I do not like chasing the market with its tiring ups and downs! Therefore, I prioritize more relaxed options by investing in my own learning to minimize losses and learn more to gain better profits!
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