Crypto – Playing The Long Game

An Interesting Observation

Something that I have noticed over the years is how many come into the Crypto space with the immediate expectation of wealth. So many are not prepared to travel a journey in order to realize that wealth. Furthermore, I have noted how Bitcoin refuses to reward these opportunists. They are simply spewed out and leave with a lot less than when they entered. Crypto is all about playing the long game. It’s a game of accumulation, timing, and smart execution. Without the assistance of those who have already traveled this journey, you are likely to lose your shirt. That’s just reality! There is one specific nugget that veterans can share and it evolves around timing.

The Halving Dynamic

For those wanting to ensure quick gains but not necessarily large gains the best time to enter the market is just after the halving. The effect of the halving usually takes a few months to work its way into the marketplace. Once the supply shock hits, things usually heat up and prices begin to appreciate. From This point, the market moves quickly and the parabolic stage is set. This is the only “shortcut” and if utilized will generally see significant gains in a fairly short amount of time. Obviously, the real winners here are those who scoop up at the bottom but not everyone has the stomach for that, or the patience to wait it out. Ultimately, the market rewards the faithful and the diligent. There is some truth to “it’s time in the market that counts”.

Time Provides Security

Over the time frame of a single cycle, one can experience significant losses. However, over multiple cycles, the element of loss is removed. For instance, Cardano fell from approximately a dollar in the bull run of 2017 and bottomed just under $0.02. That would have been extremely painful for ADA hodlers but when you consider the past cycle it gets better. In the most recent bull run, Cardano traded in excess of $3 and is currently trading at $0.45 at the time of writing. It’s highly unlikely that ADA will ever trade below $0.02 again. Eventually, your time in the market will provide security and gains will be captured.

Playing The Game

One can also sell high in the peak and look to buy back in the heart of the bear market. Either way, over time your commitment is rewarded, one way or another. Those looking to make a quick buck are quickly weeded out and then proceed to exit the market with a bad taste in their mouth. However, if you approach the market in a disrespectful manner don’t expect to be respected by the market. It’s that simple! Unspoken rules govern the world of financial markets. Sure, there are those who try to leverage wealth in order to bypass this dynamic. Some succeed and others do not. It is however better to play by the rules and approach the market in a manner that will eventually reward you.

Final Thoughts

It’s funny how those who seek to enrich themselves in a speedy fashion are usually the casualties. These market participants also discard risk management and effective portfolio construction. You have to come to the market prepared and willing to engage in a battle over time. Don’t confuse the market with a casino. You can have the “house edge” if you play the long game.

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