What are your thoughts on this?
As we reach 3 trillion dollar market cap, I am more inclined to think that hodling the good coins
that you researched well is the key to making the big money. If someone hodl-ed bitcoin when it was at the bottom of the bear market till now they would have 20x their money. Ethereum would have 40x and some altcoins had insane gains of 100x or even more.
You can backtest and say "Oh but no, if I apply this, this and that strategy I would have made more than just hodling". But keep in mind the backtested results are retrofitted and are based on hindsight. If you were to time travel back then and use the same strategy it may not work as intended or emotions and doubt comes into play. Therefore, I very highly doubt that a trader would make more money then say if someone simply hodled Bitcoin or Ethereum from the very beginning. Jesse Livermore himself said the money is made by sitting not trading.
To me trading is a defensive strategy, it just makes your portfolio more consistent but your profits won't be as much as simply holding the good coins as long as possible. But on the defensive side, if you were trading something that does not pan out you minimize your losses versus if you held some altcoins that dump 90% and never come back.
As we reach 3 trillion dollar market cap, I am more inclined to think that hodling the good coins
that you researched well is the key to making the big money. If someone hodl-ed bitcoin when it was at the bottom of the bear market till now they would have 20x their money. Ethereum would have 40x and some altcoins had insane gains of 100x or even more.
You can backtest and say "Oh but no, if I apply this, this and that strategy I would have made more than just hodling". But keep in mind the backtested results are retrofitted and are based on hindsight. If you were to time travel back then and use the same strategy it may not work as intended or emotions and doubt comes into play. Therefore, I very highly doubt that a trader would make more money then say if someone simply hodled Bitcoin or Ethereum from the very beginning. Jesse Livermore himself said the money is made by sitting not trading.
To me trading is a defensive strategy, it just makes your portfolio more consistent but your profits won't be as much as simply holding the good coins as long as possible. But on the defensive side, if you were trading something that does not pan out you minimize your losses versus if you held some altcoins that dump 90% and never come back.
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