Dangers of HODLing
The crash last summer I rode all the way down. Some of my coins I was still holding at the end of last year for 80% loss.
The start of 2018 I watched most of my coins recover their value, but didn't understand why it took so long. See the image above posted by the crypto dog on Twitter finally cleared the fog for me.
If you buy something for $4 and it looses half it's value then it's worth $2, but in order for it to go back up to $4 it needs to gain 100% of its value back.
Agreed Upvote and followed.
This is why it's always good to take average returns with a grain of salt because, in your example, what ever you invested in would have a two year average of 50% return but, in reality, like you stated, you've gained nothing. Huge swings in price make average return percentages a lot less useful.
I'm just trying to get my cost average down for the coins that I believe in so if they ever go back up I'll be able to take some nice profits.
Not a bad plan. Now doesn't look like a bad time to pick up some low cost alts. Hard part is trying to time the low point. With all the FUD who knows when that will be.
This should be called dangers of buying crap and ICOs. Holding quality for long term is the only relatively sure way of profiting. But if one can't tell difference between crap and quality, a coin or token can loose half of its value in a day.
What's the difference between crap and quality. Most of the time it's hard to tell. Do you invest in the old legacy coins that might not be able to scale or the new coins that have no platform, but promise to be the future?
Not saying everything is crap, but it's going to be a little work and a lot of luck those that are able to pick the winners over the long term.
I've only invested in Digibyte and Steem so far. The only sure players I can see. Although with steem it really comes down to steemit and how it is handled, whether quality escapes the platform or it becomes celebrated eventually, currently it isn't but I see the potential.
I was mining $Pirl in January. It was around 4 Dollars back then. Now its around 60 Cents. In order for it to go back to its January price it has to grow almost 6.66 times. This is quite impossible right. It is all because of those week hands who sell everytime they see 10% drop. Them panic selling drops the price so much that it makes it difficult to recover.
Google market cycle. Everytime a market goes up it must come back down. As long as the market doesn't go to 0 and you can afford to it will be better at this time just to hold what you mind in hopes that one day the market will recover.
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