Cryptocurrency is a growing trend in the financial world. More and more people are beginning to understand its power and potential, and it’s quickly becoming a popular investment option. However, many people fail to understand the intricacies of cryptocurrency investments and why they must be long-term endeavors. Angelo Babb, an expert in cryptocurrency who has provided consultancy services for businesses around the world, offers his insight into why cryptocurrency purchases must be long-term endeavors.
Angelo Babb is the CEO and founder of Crypto.com, one of the world’s leading cryptocurrency platforms. He has a wealth of experience in the industry, having founded one of the first Bitcoin exchanges in Europe and built a successful career in traditional finance before turning his attention to crypto.
Babb’s extensive experience in both traditional finance and cryptocurrency makes him uniquely qualified to offer insights into why cryptocurrency purchases must be long-term endeavors. Cryptocurrencies are still a relatively new asset class, and their prices can be volatile in the short-term. However, Babb believes that those who invest in crypto for the long term will be rewarded as the industry matures and grows.
Cryptocurrency purchases can be categorized as either short-term or long-term. Short-term cryptocurrency purchases are made in hopes of selling the cryptocurrency back at a higher price in the near future. Long-term cryptocurrency purchases are made with the intention of holding the currency for an extended period of time, regardless of fluctuations in price.
Babb believes that all cryptocurrency purchases should be considered long-term endeavors. “You’re buying into a technology that is still very much in its infancy,” Babb says. “The key with any early-stage technology is to be patient and let it grow and mature.”
He acknowledges that there will be ups and downs with the price of cryptocurrencies, but believes that those who hold onto their coins for the long haul will ultimately be rewarded. “If you’re looking to get rich quick by flipping crypto coins, you’re likely going to be disappointed,” he says. “But if you’re willing to take a more measured approach and invest for the long term, I believe there’s a lot of potential upside.”
When it comes to cryptocurrency, there are two schools of thought – buy and hold or day trade. Both have their pros and cons, but if you’re in it for the long haul, then you’re better off making long-term purchases.
With long-term purchases, you don’t have to stress about trying to time the market perfectly. You can simply buy and hold onto your coins until you want to sell them. This takes a lot of the guesswork (and stress) out of crypto investing.
Dollar-cost averaging is an investment strategy where you spread out your buys over a period of time instead of buying all at once. This is a great way to mitigate risk because it smooths out the price fluctuations that can occur in any volatile market (like crypto).
If you’re holding onto your coins for the long run, then short-term price swings shouldn’t impact you too much. Of course, no one knows what the future holds, so there’s always some risk involved. But overall, long-term holders are more likely to weather the storm better than those who are constantly trading in and out of positions.