Crypto Investing: Think Long-TermsteemCreated with Sketch.

in investing •  2 years ago  (edited)

Here's another reminder both to myself and to my readers to view cryptocurrency ownership as a long-term investment in the financial system of the future instead of a short-term speculation.

I wrote this post on May 25th: The Big Question: Should You Sell or Hold During a Market Correction, and it applies today as well.

Here's the total market capitalization at that time along with the market cap today:

As you can see, even with this massive correction, we're still trending upward over the long-term. My portfolio is down 50% since 2017-06-13, but up 390% since 2017-03-27. As I've mentioned before, I purchased my first bitcoin in 2013 at $20 each. I watched bitcoin go all the way to $1,200 and then crash down to around $250. I didn't sell. Because I didn't sell, I was later able to pay off my house.

This, I think, is the difference between those who accumulate wealth and those who are living paycheck to paycheck. If you have no "extra" to invest, then you may be forced to liquidate when you need funds instead of when you'll get the best returns. Getting out of debt is key along with increasing your income to build savings. The Dave Ramsey baby steps are a good place to start.

It's easy to get frustrated with cryptocurrency investing if you start your investing at the end of a bull market and only experience losses. Keep in mind, those losses are only "on paper" and not realized until you actually sell. If you can hold, it's usually a good plan (unless you're way better than me at timing the markets to get in and out perfectly to increase your holdings).

Many are promised great riches and "lambos" (Lamborghinis) falling from the sky to their own private island in a matter of days or weeks. That's not how reality works. Yes, some people get incredibly lucky, but they are the outliers. The crypto space has a lot of whales who will gladly squeeze margin positions and "weak hands" out so they can pick up cheap coins to further increase their wealth. This is how the game is played.

I posted recently about how my HERO margin was called. I also have an open margin with bitUSD, but this time, I hope, I can hold it until the market recovers. I'm watching the cryptofresh BitShares block explorer closely, specifically the "USD Debt Positions (Call Orders)" section. My Collateral Ratio is currently over 800% as you can see here:

Many others, I think, will be squeezed out and their holdings will be liquidated in the waiting hands of whales increasing their stacks. Others will sell for a loss due to fear of losing their principle. Those who win long-term will buy the dips.

Long story short:

  • Get out of debt and build savings so you have extra to invest.
  • Only invest what you're willing to lose.
  • Think long-term.
  • Lambos for everyone is not reality. Live in reality.
  • HODL.

Don't take investment advice from random blog posts on the Internet, but continue to grow and learn from multiple sources to figure out what works best for you.


Luke Stokes is a father, husband, business owner, programmer, and voluntaryist who wants to help create a world we all want to live in. Visit UnderstandingBlockchainFreedom.com

I'm a Witness! Please vote for @lukestokes.mhth

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Life changing wealth is created by holding investments over a period of years, not weeks or months. For those creating substantial wealth in crypto right now the current correction is a flash sale to be bought aggressively.

Like any other investment there is no loss until you sell. Assuming the investor has done their due diligence and has invested based on fundamentals there is nothing about these types of market movements (coordinated dumping by whales) that alters the fundamentals behind the original investment. Ie. you don't sell because some rich jerks are pushing price around for their benefit.

At this point my advice is to look at crypto as a 2-3 year hold and the only reason for selling is re-balancing (ie. BTS spikes 1000% and suddenly is 90% of your portfolio) or new tech replacing old (EOS replaces ETH). Otherwise just ignore the ups and downs as noise/entertainment. There are a few very wealthy individuals who are manipulating the shit out of the crypto market. Every time you panic sell you make them wealthier and give them more power.

Hodl and prosper.

Very well said. A 1337 comment, if you will. ;-)

Why 7h4nk y0u

It's important to find what investment is going to be relevant and worthy in 2-3 years. Maybe you will reevaluate your decision once in a while. But it will come to your analysis, and understanding of what to pick in the beginning how to adjust in time.

Like any other investment there is no loss until you sell. Assuming the investor has done their due diligence and has invested based on fundamentals there is nothing about these types of market movements (coordinated dumping by whales) that alters the fundamentals behind the original investment. Ie. you don't sell because some rich jerks are pushing price around for their benefit.

Well said.

Lol..this is extremely hilarious! "Where is the fucking lambos my brother?!" Lolz . That pic got me cracking!

  ·  2 years ago Reveal Comment

long story short, I read this phrase alot!

Yes agreed that part is fantastic.

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Wow! Nice

This right here is key
"Get out of debt and build savings so you have extra to invest."

Thank you!
Resteeming.

You've got some nice voting power... How about doing @steemerite a favor by giving him a 100% upvote and a follow for his "Lotus Flower" posting... Thanks...

I would love to upvote 100% and I do good content and good profiles that contribute in a meaningful way to the STEEMIT platform.
@steemerite does not follow anyone nor is being followed by anyone. Also this profile only has only 3 posts and no comments on any post.

I may have missed something so can you please justify to me why I should follow or upvote?

@steemerite is very new to Steemit... I was hoping someone could open his eyes to the possiblilities... My 2 cents won't do it, so I've been searching for someone to give him a little bump to get him going... Thanks...

Thats cool and I appreciate your thoughts. I will take another look at his profile and engage with @steemerite.

Thanks.

Update: I commented and upvoted his post and suggested he engage more with community.

Thank you for the suggestion.

Thanks for taking a second look... I hope this is what it takes... I don't think he noticed anything yet... Time will tell... Thanks again...
@pocketechange

@lukestokes " Lambo isn't for anyone" is truly a spot on. I mean come on! wake up people, reality don't work that way. I like the way you convey your views along with some proofs on it. So the thing about investing is that, it's about how to see it in a long term and investing is never ever a quick buck scheme.I mean if it was, everyone would have been rich by now. Upvoted :)

👍👍

Thank you! :)

When we automize most of the work (mining, smithing the metal, building houses), maybe there will be a day for "lambo for everyone".

Excellent crypto investment advice here, friend. I am envious of how early you got into bitcoin and bought. Smart move. Much love.

Thanks Sterlin!

There's a new guy on Steemit calling himself @steemerite ... Could you pay his site a visit and give him a very needed 100% upvote and a follow...??? Thanks...And please don't mention I messaged you...

In my brief forays into the stock market, definitely one of the things I learned was trading on margin is tough. It's nice in that you get a solid multiplier for your efforts, but it's far more dangerous, in that you can get completely blown out of the market, and driven to zero, if you're not careful.

In my opinion, trading on margin is Beast Mode, and you should not do it unless you're prepared to lose everything.

If you want to be in the market and can stomach 'mere' 2x-4x-8x gains? Then simply buying your currency of choice makes the most sense. There's no margin calls to deal with. You own your currency, and its value may fluctuate - but you will still have it.

I think with Steem, if you're actually putting real money into it, it could make sense to hedge your own bet by buying SBD's as well. If the market goes down and your STEEM loses a ton of value, at least your SBD's will end up maintaining their dollar-amount. And if you're going long term, you can sell your SBD's on a downswing to keep driving your position upward - if you're long-term long on cryptocurrency.

I haven't figure out if I am yet :)

Thanks for commenting, Brady. Have you read my posts on BitShares? I link to them in the margin call HERO one. It's interesting because your own collateral via many multiples is used, so it's somewhat different than traditional margin setups where it's true debt. Also, the historical long-term trend of fiat verses cryptocurrency has been very, very good. So, on a long enough timescale, if you're betting against fiat, it's (so far) been a pretty safe bet (though a very volatile one).

If you can get a margin call, I'm pretty sure you are, in some way, dealing in debt. You borrow something and promise to pay it back later. That borrowing is done against a certain amount of collateral. That's debt. If the thing you're going to pay back later loses value in the interim, you buy the thing back off the market at the new lower price, and hand it over - at a profit! If the thing you're going to pay back later rises in value, at a certain point your liability will exceed the amount of collateral you have on hand, and you get automatically liquidated.

I won't pretend to understand any of that variable multiplier and collateral ratios and other such madness; I don't really know what it means. But I'm pretty sure about the first thing.

And, sure, on a long enough timescale, maybe Crypto beats fiat. I mean, hell, I'm here, right?! :)

But margin-trading isn't long-term. One tiny bump one way or another and you can get wiped out. Or make a mint. It's collateralized debt, no matter how you mark it.

On the stock side, the people who work in derivatives markets like that tend to be very short-term day-trader types. Or, they're people who have set up side-hedges to cover themselves if something goes very, very wrong.

(There's actually some really interesting stuff you can do, where you buy something you believe in, and hold it. And then you get some kind of derivative-style bet against it, and hold that too (up to a point). If your main bet pays off, you get margin called on your secondary bet, but if your main bet was good enough, you're still in profit. If your main bet tanks - horrifically - then you at least get a consolation prize on your secondary bet - and it's fine, you still hold your main bet (for now, unless you panic and sell it)).

So for you - and what I can figure that your positions are - I would dump a big chunk of money into good ole' BTC (or STEEM, or whatever currency floats your boat. Or a nice 'basket' of them). And then I would dump a smaller chunk of money - your hedge - into a short against it (SBD maybe? Or some other BitShares thing I don't know about yet?). You just have to work out a spreadsheet of your potential gains to potential losses, or whatever. And you'd have to remember; if your main 'position' goes well, you will lose your hedge. And that's fine, that means you've done well! I think the other thing to note is that you want those accounts to be separate; so that your main asset doesn't get lumped in with the collateral you have on your short. You want the short to liquidate itself (going to zero) when its collateral is spent, not have it keep going and run against your main bet!!!

DISCLAIMER - not financial advice. I don't know what I'm doing. I have never done the thing I just talked about.

I think I read something on Wikipedia once about 'bracketing options' - that might have more details if that's something you're worried about.

Yes, I'll concede it is indeed debt, but so are the pieces of paper with dead people on them in everyone's wallet. Fiat is a certificate of debt with no collateral other than taxes and economic productivity of a nation state (which, you know, I love to consider theft or, at the least, a version of extortion).

In this case, the collateral system really matters. Whereas derivatives traders are often trading with only a fraction of real value backing their positions, BitShares takes the opposite approach with over collateralization. It does so knowing that BitShares itself is a risky, volatile asset. The key being even if the margin is called, no one is hurt accept the person who took out the debt position. Everyone else gets exactly the value they are owed.

I like the idea of betting against yourself to some degree, but isn't that also just like doing the same thing at a smaller scale?

So if create 10k bitUSD out of nothing, buy BitShares with it and hope for the best, betting against myself would be to also buy up some bitUSD. How much? 2k? 5k? If I was to do that, I might as well just create 8k or 5k bitUSD to begin with. The key, I think, comes down to how much collateral you have and how much you are willing to lose.

But yes, selling the bitUSD for just BitShares may not be as good of a move as selling it for multiple cryptocurrencies (which I've also done in the past). With what we saw this past week or so, it wouldn't have mattered much though as everything went down.

I'm glad you're here, Brady. I hope you enjoy playing around with this economic sandbox which runs on smart contracts with no violence. :)

Wow, this is amazing advice and very motivational. I'm a huge Dave Ramsey fan (I disagree on minor details but overall he's awesome) and really agree with what you outline here. Thanks and I'll be following.

Thank you! I worked for Dave for almost 4 years. He helps a lot of people.

I like this. Exactly my thinking. I treat cryptos the same way I treat stocks. But to hold, so pick wisely.

Please visit @steemerite and give him a 100% upvote and a follow... For doing so, you can visit my postings and I'll give you my Theory on Pocket Change... Thanks...

  ·  2 years ago (edited)

"A little bit of perspective" posts are such a bearish signal. :-P

Hah! Yes, they are indeed. What's also a bearish symbol is the red candle bloodbaths we see all around us. Hahah.

I wonder if you will end up being right here...I think there's more downside to come yet.

this is a really great blog, really great effort posting this article, I must follow you from now, resteemed your article hope everyone could read this wonderful thing I found

The long term trend is that crypto's will be the new currency.
The other long term trend is that paper currencies are going in the trash.

These trends we know are going to happen.
Unless something completely, hands down, better comes along (and it probably will, but incrementally, and bitcoin will adapt it.)

The problem is between here and there.
We know the people with the power behind the money system will do EVERYTHING they can to maintain power. And so, its going to be a bumpy ride.

Well said! Bumpy ride indeed.

@lukestokes - Thanks for this analysis and advice. You are right - crypto is not going to give Lambos in a matter of weeks. Like any stock or currency markets, there will be those with big pockets who will try to push the price down and pick up cheap coins.
I am going to hold just as you advise. Thanks for sharing your views. Your opinion lends confidence to newbies like me. Upvoted

Since markets are red, I am not watching them. Instead, I have focused on improving my blogs. I have posted an interesting blog about Human vs animal eye capabilities, based on my original photos of wildlife. I request you to take a look when you have time and give your comments. It will help me improve my blogs and enrich my Steemit experience.

😃

Great post and good job promoting your content in a non-spammy way. Upvoted.

Thank you very much for your support and words of appreciation. It is a great pat on my back - coming from a Senior Steemian like you.

If it is not too much to ask, may I connect with you on Steemit Chat if possible?

I don't use steemit chat much as I have many different things which take up my time (including my three kids, my wife, and my business). If you have something specifically important you want to discuss, sure, go for it. My patience with random "hi" and "hello" DMs which inevitably lead to "Please follow me and up vote my posts" requests is running thin.

😊 I get what you mean. There must be many minnows like me who must be seeking your attention. I will not disturb you unless I have some important doubt that I need advice on. I know very well that follow for follow and upvote etc are worthless and irritating for Senior Steemians. I will never resort to such mindless tactics.

I will say hi and attract your attention in a non-spammy way here till then. 😄. Thanks for your continued support and guidance in advance.

Well reasoned, thank you. Building a following and finding success here takes time and effort. Patience and proper expectations are key.

Awesome post, Luke. So much truth here, but it all comes down to thinking long term and keeping your expectations in check. Wouldn't mind one of those lambos though :)

Thanks Jason. :)

Yeah, I'd like the money needed for a lambo, but I'd probably use it on other things.

You know, that's what I keep telling people who trade cryptos, FX and stocks, whenever they blame me for suggesting something to buy. First of all, it's all paper losses. No one's forcing them to sell if they don't want to. If they needed the money now, then they shouldn't have invested it short-term in the first place. Second of all, they ask me what I think is a good buy. I'm not an oracle, and I never claimed to be. I just do my research and hope for the best. They could've done their own research as well.

All the red I see in the charts just make me so excited. It's like open season on which investments would retrace strongest.

I generally try to avoid giving specific advice to individuals on which coins to buy. I did so in 2014 and some bought at the very top, only to sell for a loss. If people aren't willing to put in the time to do the research, they are often the first to complain about every single correction.

@lukestokes,
Your posts are a university to new joiners of crypto trading. Whatever you said 100% correct and I have the same kind of experience as well. When market drops most of newbies are selling their holding coins, but well experienced traders are preparing for that market drops to collect those coins in cheaper price.
As you said in the article most of top 10 marketcap holding crypto coins are bounce back to the previous and probably they will pass the previous peak as well.
Finally I would like to say, don't forget to follow @lukestokes, and don't forget to read @lukestokes's articles. Those articles are adding true value to the Steem community and if you follow his guidance you can minimized the loss and definitely you will be at profit in the end of the day!
Really appreciate your effort!

Cheers~

Thanks :)

You are welcome friend!

It was a rough day yesterday. Nothing going to shake me though. I took out enough a few weeks back to support us for two years. ; ) Going to ride this wave for as long as possible.

Nice, Randy! A two year runway is quite impressive. Well done!

  ·  2 years ago (edited)

Tomorrow I am starting a comic series titled

"Lamboland Adventures"

DOEET!

Woww so good i'm playing steem for the long term

This comment has received a 0.07 % upvote from @booster thanks to: @hamzaoui.

The markets are an enigma. They always have been and always will be. My grandfather told me long ago, that any financial decision backed by emotion, is a foolish one. Yet markets ride the waves of emotion up and down. In short, doing the opposite of what the mob is doing is almost always the best solution. Patience is always the best approach. It can be quite difficult at times, but this is not a sprint, it's a marathon.

A quote from Warren Buffet comes to mind, “If you are not willing to own a stock for 10 years, do not even think about owning it for 10 minutes.” I think most of us are in it for the long haul, so the bi-polar actions of the market today should not sway us, for we know where we'll be in the future. Steem as well as all the cryptos are simply on sale today.

nice post
resteem and followed

Thank you! Always appreciated.

hodl!!!hodl!!!hodl!!!

great post...upvoted

yes long term is profit, when you start daytrading and panicselling you end up losing money. Some great tips here for everyone in your post. Good reminder but also good for people who just starting to know this.

Today's day it is hard to not live paycheck to paycheck. I am currently only invested a tiny bit because I want to be apart of this Crypto space because I feel that this is the future.
I am working on getting better positioned so I can move more into this space. I do like this platform though. I fell this could really replace FB and Twitter as the ultimate Social Media platform and expand the Crypto space.

People need to focus on "cash flow" or "coin flow". Leave the gambling to the whales with money to burn.

First Rule of Trading - Buy when everyone is selling ,Sell when everyone is buying
and for beginners it should be the only rule

This is the Hodl trading perspective I want to read...thank you!! Resteemed, upvoted and followed.

Thanks so much, I greatly appreciate it.

Spot on! I keep trying to convey this concept to friends afraid of crytpos and yet the fear seems to be too much -- it' funny how much press the down turns get, which should not be of concern to those with long sight as an investment strategy.
*Resteemed this excellent article.
Thank you.

any idea in when this correction will end? i'm getting a little impatient :(

In 2 hours, 32 minutes, and 12 seconds.

Haha! No one knows! If you're feeling too impatient, crypto trading may not be for you right now. :)

Lol xp

great post. and lots of information and how to for newbies like myself :)
I have couple investments here and there but I definitely need to get a hold of some more
Soy tu tio

"Where's my Lambo" LOL

The meme!!!! Lol! My Hubby has been at the crypto stuff for years now and I cant seem to wrap my head around it. So we compromise on our savings; i do the tradiontal route (401k n stuff) anf he does the cryto stuff.

that's a pretty interesting post I like it thanks a lot for sharing and keep on posting ;)

This is something very important what is there post, I really like it I see your post very good what more votes enough votes I am very happy to see if you want my votes if you want to help me in steemit how glad i am happy for you may always be successful

Great post. And truthfully, this is the one thing that makes Steemit stand out....NO ONE pushes people to invest. in fact, I read everywhere people saying only invest what you can afford to lose or something on those lines. It is the truth and solid advice.

Great post Luke!

Thank you. I think many Steemit users recognize the value we have here and are in no hurry to see things explode too quickly. Anyone one trying to push someone to buy something they shouldn't isn't helping them.

I have lost 50% in short term....

These markets are just not easy to navigate when they turn like this. But, we've seen this all before. Just have to have a little patience :)

Did you sell? If not, you didn't lose anything. If I had bought at $1,200 when it went to $250, I would have lost a lot more than that, percentage wise. Do what works best for you and learn from the results of each move in-between.

But but but... day trading is so fun

It can be. So is gambling. Both have a place. I'll day trade more in the future, I think, once I have more time to devote learning how to do it correctly with margins, short positions, etc, etc.

  ·  2 years ago (edited)

I think.. you are too good😲

I couldn't agree more. Everyone is always watching the daily, hourly movements. I always tell people not to, otherwise they'll be pulling their hair out.

This is a waiting game and we're in it for the long run. Thank you for this piece.

time to buy cryptocurrency

Thank you for this very informative article. Watching and learning from you. Up voted and resteemed.

A while ago you answered some questions I had about bitshares and bitUSD. Your answers have lead me on a path of discovery that could be life changing. I guess "I get it now" is the best way to explain it. Thanks for taking the time to answer my question. Always learn a lot from your posts.

Excellent! I'm glad this information is useful to you. Thanks for giving me your witness vote as well.

How can you analysis that kind of content

Buy, hold, hold, and hold. That's all.

Great post

Great perspective and some great tips as well. Yes unless you're day trading buy, invest and hold for the long term. Just like anything else in this realm of wealth building there are cycles it will go through. Peaks and valleys so to speak. For me, all is being turned into steam power at present and being allowed to grow for the future. Always enjoy Luke. Keep it comin'!

In 100 years from now you will find the truth under the dust of lost time

The time to get lambos has gone. Cryptocurrencies are moving towards stability.

I agree with this. Long term is the only, more or less, sure way of making wealth. There are ways of analyzing the market and getting lucky, but usually those things are more about luck than actually knowing what you are doing. Well at least as far as I can tell. I mean there probably are those who make millions per year on the stock market every year, since all it takes is about 140 trades of 10% to make your $1 into a million. Hands up if you're one of those two year billionaires! :)

Ok, I guess you get my point. I don't believe anyone can accurately read the market, because if that was the case there wouldn't be anything stopping them, because some compound interest would make them millionaires in no time, compared to long time holders.

I'm not saying you can't make profits trading actively, but you might be wasting most of your time doing that. Therefore, long time holding is usually much better.

@lukestokes great info... i used to think lambos are for everyone.... hahaha.. i have learned from your post.. thanks

Thanks for pointing out the points that so many have missed, if it's an investment thane factor in the time needed, invest only what you can afford to lose :) Lambos are not for everyone ;) HODL

Great analysis @lukestokes . Honestly i have not login into Bittrex account, not want to have heart attack, so , i will stay put till the market correct itself or when fresh funds is available for me to buy more coins. thanks and I resteemed.

That's probably a good plan. I've seen many people post about ignoring their blockfolio during this time and just going out for some time in nature. It's a good idea.

Market is indeed in downtrend but it is not gonna stay in there forever. Market will rise as soon as the Segwit hype gets clear. Market has reached it's lowest downtrend and I don't think it's gonna fall further. GOD helps all. We can HODL our currencies right now. Within a week or two, we can see positive uptrend. @lukestokes

I hope so, but it's hard to know for sure. We're also at the end of a pretty massive bull run as well. How much of the Segwit drama is priced in? How much of the volatility will continue in order for whale to get the positions they want? It's going to be an interesting summer for sure.

I need a lambo!

hodl is the best strategy

nice post
follow me& upvote

The market is a big voting machine. It is currently putting more votes on fiat (and Bitcoin) than most altcoin. Try to seek the most valuable ones that you think will bounce back the hardest.

Great post, I'm holding all positions right now plus Ive added steem yesterday and I'm ready to get more if the price goes down

I agree with you, as I did as you did. Though I am probably not as rich as you.

Hi @lukestokes i totally agree with and keep saying it around me. Do not sell keep all of your asset and even get this great opportunity to grab some coins at a good price. Many newcomers are now selling, afraid to get nothing by the end but i always tell them this is a long term market like everything. Nothing come in a day. Thank you ^ and follow you + Resteem it

Thanks so much. Keep spreading the good word.

Great post every word is so true. This is such a great opportunity to acquire more coins at a great price. Keep doing what your doing!

Hi @lukestokes !!
awesome post and advice too. thanks for this. see you soon.
UPVOTED you.

Amazing post with an amazing message! Thanks for sharing! Followed!

Thanks for the follow! Much appreciated.

Holding , investing and participating in the crypto ecosystem is my motto.
We now earn enough DAILY to totally support a family of 3 JUST FROM CRYPTO.
we don't just believe in the long game....we believe in the game changing.

Crypto for me is a long term investment and that means holding..good article

Great post and I agree with you on the long term view. We are only in the first inning of this long game. I tell people its like the mid 90's for the internet and internet stocks.

The road to doing welling in investing is to be willing to buy when others are not. Contrarians in the long run will win. Then you need to hold through the cycle. Every sector has cycles, some short and some long. Gold has historically had an 8 year cycle.

For those reading, if you want to know which cryptocurrencies to buy, subscribe to the Palm Beach Confidential- a newsletter devoted to asymmetric bets where you put a small amount into each of the portfolio, you don't care if a few go to zero and you let the others do their thing. One position has been as high as 6600%. In my portfolio I've had one position as high as 4200%, but I've decided now that I have filled my buckets I'm no longer going to spend time looking at the portfolio. I'm going to let my $20k do its thing. With so much speculation by the world over and with so few who know anything about the cryptos they are buying, we will no doubt see massive drawdowns and incredible moves up.

Wishing you all a chance to peacefully participate and subscribe to this newsletter if you don't have the time to do proper research on positions. It's been great just make the investments instead having to filter through all the noise.

Great post! Lots of good information!

Good analysis! We have to wait and watch the market volitile.Thank for your valaueable advice.

great analysis!!

This is a FANTASTIC post. It is shocking how many on Twitter are putting fear in people's minds.... making them think the market will never recover and all coins will go down to $0. Of course that won't happen! It's sad to see the manipulation, but I suppose that's how it goes with any public investment. I do agree that most alt coins will not make it, but that's because they have no clear purpose, or substantial benefits to others already ahead of it. Yet there are A LOT of undervalued coins that will make a big splash over the next 2-5 years. What will be the next Bitcoin? That's to be decided. But I'm sure there are plenty of long-term investments where you can see the same big return..... though nothing will be quite as sweet as buying Bitcoin for $20 ;) Jealous!!!!! Keep up the great work. Loving your posts.

Thank you!

Haha.. I know it's a story of loss but it's true. yes sometimes it happen when we try to save for future and gets zero benefit. And that Lambo phrase is awesome.

Hey Luke,

Crypto Investing: Think Long-Term

A well thought out piece of advice. IF it's taken at the right time.

What I mean by that, is that you have to have had that mindset going into when you bought. If it was part of your plan to hold through a decline like this because it fit in with your risk management profile, then it's very much great advice.

But if you bought as a short term trade and now are just holding because 'it might come back', then your'e very very wrong. Your risk management will have been totally destroyed and you've opened yourself up to a whole list of flow on problems within your portfolio.

I wrote about why you can't flip a trade into an investment here. Worth a read for you and anyone else interested in the mindset of traders v investors.

Nice! :)

Thanks for post nice analyst

Great post @lukestokes. A lot of people seem to be content with the pump and dump method. However, I feel like if you truly believe in the blockchain technology and think it is revolutionary you must hold long term. I've done the same with a select few crypto currencies that look promising to me. Everyone around me is panicking about the crash but I'm fine knowing I wasn't planning on selling it for several years anyways. I'm also an avid crypto currency fan and would mean a lot if you followed and checked out my content. I'm planning on doing a few crypto posts in the future and would love your input. I've followed you as well and looking forward to more content buddy. Cheers!

I wasn't planning on selling it for several years anyways.

That's the key. Have a plan.

I'll check out your blog and follow if it's content I want to see more of.

(Edit: sorry, I'm not much of a sports fan at the moment, so I probably won't be filling my feed with that content. Reply to this comment when you post your crypto article, and I'll check it out.)

Some people are into cryptocurrencies just for a quick cash boost and you can't blame them

All 5 points in Long story short
True, everyone in cryptos are thinking of buying a Lambo. That's funny...
Following and Resteeming...

good post

It's buying time! I don't have a ton of extra disposable income to invest, but if I can buy $50-$100 worth of Steem at $0.96 like I did yesterday I will jump at the opportunity. Just a few weeks ago Steem was well over $2.00 and its been as high as $4. It will come back up eventually. Those are nice returns if you can hodl.

I remember it at $0.15 this past year so keep it mind it can fall even further.

Very true! That would be an even better time to buy :)

So true @lukestokes . Many who have been in crypto for the amazing run over last 2 years just got too spoiled. When you compare the bulls and correction we had to metals, we should be kissing feet of every crypto guru out there:) What I might do is just not look at it for 2-4 months and sit through the hardfork, just buy few solid alts, keep some BTC and do nothing. We have crazy good times ahead later this year, nothing to worry about. Thanks for another great article bro!

good job thank you

Very solid advice here. People freak when they see the market drop like it has recently, but they forget the market can go back up just as quickly. Long term trend is the market moving upward over the long term. Sure, you may get a bad investment that bottoms out but through research into what you are investing in, those types of losses should me minimized.

Nice post about cryptoinvesting @lukestokes! If you like investing we would be pleased if you join our SteemitStocks Discord channel. You can share and chat here about your content on Steemit with fellow investors. And we are currently doing a Steemdollar giveaway here.

Excellent post @lukestokes. Thanks for sharing. What you said about losses only being on paper unless you sell is so true. Hold. Cheers.

I am no expert on investments, but have been in the financial services industry long enough to see lots of people lose money just because they panic once the market goes down. They pull out investments at the wrong time and therefore lose the growth they accumulated through time.
What goes down will go up. Do not panic when the market is down, but actually take advantage of it. Invest more, if able - as you said though, do not invest what you cannot afford to lose. 😉