Why do old crypto recommend Hold? How much money could a Bitcoin Holder earn back then? Or what about Ethereum Holder? At the moment of writing, I will not mention the creation stage of Bitcoin which was too long ago. At that time, Bitcoin was still too unpopular and niche. How much would you earn if you held Bitcoin for ten years? According to historical data, the price of Bitcoin on October 24, 2013 was 214.3 US dollars. Compared with today’s currency price of about 34k, the return rate of Bitcoin held for ten years was 15887%, about 158 times.
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Ten years is still too long. Besides, Bitcoin did not have much popularity in 2013. How about five years? Five years ago in 2018, although Bitcoin was still not very popular, it was already considered a world-renowned emerging asset.
If you hold Bitcoin for five years, the return rate is 409%, about 4 times.
Suppose you missed Bitcoin, but were lucky enough to hold your second brother Ethereum? It has been less than ten years since the creation of Ethereum. The oldest data on Coinmarketcap is only 2015. It has only been more than eight years. What will it be like to hold Ethereum in eight years?
Compared with today's currency price, the eight-year return rate of Hold Ethereum is 328,971%, approximately 3,289 times. If you hold it for five years, the return rate is 773%, more than 7 times.
Simple conclusions that can be drawn from these two cases:
If you participate in good projects at an early stage, you will have an astonishing (a hundred times or a thousand times) return rate.
If you participate later, the return rate will gradually approach the normal range (several times to more than ten times), but it is still considerable compared with investing in traditional assets.
Most people have no trading talent, and the results of active investment are often not as good as simply holding.
But be aware that there is a survivor bias problem. There are also some coins that become cheaper the longer they are held, and then disappear.
Are you holding on to life amid the slump and all kinds of bad news?
Let’s take a look at the top cryptocurrencies one by one, except for stable coins. Almost every one of them can be held as long as they are held, and they will have amazing returns in a few years. Hold = buy and hold. After buying, just hold on. Seems simple?
Being a Bitcoin/Cryptocurrency Holder seems simple. In hindsight, it seems to be mainly luck. However, you will actually face many difficulties and obstacles in the process. It will be more vivid if you look directly at the memes on the Internet.
I have seen this meme too many times. What it wants to convey is that there is always a huge gap between "what you think" and "actually". People think that Hold means buying and holding and making money smoothly, but in reality Hold will face many difficulties, and it is very difficult to persist until the end when people want to give up.
Many people will think that it is difficult to hold on when the market falls sharply, but it is not easy to hold on when the market rises. It may be even more difficult. If you bought Bitcoin in 2013 and it increased fivefold within a few months, would you sell it and pocket the profits or continue to hold it?
Even if you choose to continue holding this time, but then it drops 80%, returns to the starting point, and then rises dozens of times, how many times will you want to sell during this process?
Almost every big drop will be accompanied by a lot of bad news. Bitcoin is regulated, blocked, miners leave, mining disasters... Every time it drops to the point where it is impossible to see the future, and then it is like riding a roller coaster. How can it go down? How does it go up, how does it go up, and how does it go down? In the process, do you want to simply take advantage of the high point and take profits?
According to the previous calculation, the return of holding Bitcoin will be 150 times in ten years, but what if you sell it when it reaches 10 times? Hold Ethereum has a 3200 times return in eight years. What if you sell it when it reaches 10 times? The next one hundred times and a thousand times are irrelevant.
Bitcoin first crashed in 2018, followed by a two-year long bear market. What came after the bear market was not a dawn, but another crash in 2020/March. On that day, 2020/03/12, Bitcoin fell by nearly half. At one point, it almost reached zero. A certain exchange even stopped trading without any buy orders and directly suspended trading. This behavior, which was later called the unplugging route, may have saved the entire crypto.
Those who continue to hold after all this will finally usher in the next bull market, and Bitcoin once again hits a record high. In the eyes of outsiders, they are just people who were lucky enough to buy early. Only they know the various entanglements and persistence in the process. . Think about it, do you think it is more difficult to hold on during a big crash? Or is it more difficult to continue to hold when the price rises dozens of times?
Elements of becoming a crypto holder
Participate with spare money
Spare money refers to money that will not be used for at least a period of time, usually within a few years. If you have one million on hand and plan to use it to buy a new car or hold a wedding within a year or two, losing this money will cause you to get stuck and have an impact. Life planning, then this money is not considered spare money. To be able to hold on after a 98% drop, it must be spare money, otherwise you will have to stop loss and sell due to demand for funds.
have to really believe it
It’s best to have a group of friends who cheer each other up
Faith needs to be supported by information and knowledge, otherwise it is just blind. The project’s white paper, articles or speeches by the founder and team members, development trends in the cryptocurrency field, real-world status, actual project development progress, etc., all need to be understood and reviewed from time to time.
You must know clearly what you believe in order to continue to believe in it.
But doing homework and research alone for a long time is very lonely, and there will definitely be a lot of self-doubt. It is best to have a group of research partners to share information and opinions with each other, and to support each other emotionally.
If you enter the crypto because of cryptocurrency, because you agree with the concept of decentralization, and the vision and methods of certain projects that want to change the world, and you really use your spare money to participate, then you can be a Holder and experience the thrills that outsiders cannot experience.
Later, we will bring you analysis of leading projects on other tracks. If you are interested, please click follow. I will also compile some cutting-edge information inquiries and project reviews from time to time, and welcome like-minded people in the crypto to explore together. If you have any questions, you can comment or send a private message. All information platforms are Tuanzi Finance .
