Why I hold Bitcoin and Ethereum
First and foremost, investing in cryptocurrency is a relatively dangerous activity for your finances: there is no certainty about the gains made by any particular investment, and many investors in crypto lose their money. This is why the main advice for me to you is to not put all your money and only invest what you can afford to lose.
Okay, Here is my strategy in Crypto.
I hold Ethereum and Bitcoin primarily long term and here is why.
Chapter 1: Bitcoin and Ethereum
Historically the first crypto currency created in 2008, in response to the economic crisis hitting the world, Bitcoin (BTC) remains the safest value for investing. Prancing at the top of stock market valuations with more than $ 700 billion at the start of 2021, Bitcoin is undoubtedly the flagship currency of this market. Just after Bitcoin comes Ethereum (ETH), the pioneer of Decentralized Finance (DeFi), which actually has more users on its blockchain than Bitcoin!
Chapter 2: Why?
I hold my Bitcoin and Ethereum because I know that cryptocurrencies could reach a wider level of acceptance and adoption. For example, PayPal in October 2020 which now gives its 300 million users the ability to buy, sell and hold cryptocurrencies directly in their PayPal digital wallet.
I hold my Bitcoin and Ethereum because institutional adoption of cryptocurrencies is coming. We can see that on the news and how the market is heading to. These adoption will make the crypto market stronger and hopefully, will help stabilize Bitcoin from its volatilities.
I hold my Bitcoin and Ethereum because it’s the source of innovation for financial services. Since September 2020, the value locked in in DeFi during the previous 12 months has increased by 1,500%. We do now have NFTs which are talked about by the entire world. All these innovations and new ways to use cryptocurrency will boost the price of Ethereum and more.
Chapter 3: How?
I usually set my target for my profits on all my investment.
Here is an example of how I take profit. Brace yourself, this is going to be personal.
I bought Bitcoin when Bitcoin was around 4400$ and I originally bought Ethereum when it was 170$. But, I will just talk about ETH for today.
At that time, I remember buying 10 Ethereum at 170$. Then Ethereum went to 240$. I was very happy. I remember taking a small piece of it out. Maybe 1 Eth out. That was all I did back then.
However, I continue to buy more Ethereum along the way.
Year passed, 2020 is here. Ethereum was at 360–480 and it was stuck there for a while. I mean, a while. I took profit at 380$ again but as usual, I continue to add my stack on Ethereum. Fun Fact, around these times (April — May 2020), I found Virtual Bacon on TikTok.
Summer was getting hot, many ICOs were booming. I was like, oh well, let me test that out. WORST DECISION OF MY LIFE.
I tried rebase coin and it really did fuck me over. I didn’t study the market. I didn’t do my research as I should have done. I didn’t do anything. I fomo and I got fucked. How? I bought and the price kept going down. Instead of analyzing my practice and what was going on, I increased my portfolio and kept on increasing my portfolio in the hope of getting out quick when the price slightly goes up. But, as you know by now, it never works. I was sad, lonely and crying. But, at least I had my fair holding of Bitcoin and Ethereum which kept me company during those hard moments.
Summer has passed, winter is here and suddenly, Ethereum is at 530$.
The thought of Happiness started kicking back into my brain. Two weeks later, it was at 760$. Look at that, I just made back my rebase trade losses with the small bag I had from Ethereum. The light was finally there at the end of the tunnel. I was finally happy and my eyes opened wider and wider as I looked at the Ethereum green candles indicating a move up to the moon.
This time, I made a decision to take profits at around 880$ from Ethereum. Then, 2021 was here. Oh My God. Ethereum strokes all the way up to 1100$. The juice in my face started spilling everywhere. I couldn’t resist it. I finally made it. My portfolio started becoming even greener. My phone didn’t need charging anymore. I was full at all times 24/7 just with the battery alone. Miraculously, I had no headache nor fever anymore. Or even stomach ache and it felt like Coronavirus was not even there.
In Jan — Feb 2021. Ethereum and Bitcoin went all the way up. My portfolio became insane. I can finally buy myself a new house and a new car at the same time. FUCK. I keep thinking and beating myself, why did I not HOLD? What the fuck was I doing? I would have been a millionaire by now and retired. That question still hunted me from the past month.
Now, I know why.
I had to learn what works for me in this market. I had to learn how to be disciplined and stick with formula. I had to learn that holding WINS over TRADING. I had to learn that I need to do a lot more research before I invest in the future. I learned in the hard way.
Chapter 4: So?
Crypto is big and exciting. Many projects come in and out all the time. It’s important to figure out your strategy in crypto before you learn a hard lesson from it. For me, life gave me a second chance, the market is booming again, giving me a chance to recover my loss. But, it may not be the same for you.
Remember, blockchain technology and cryptocurrencies have intrinsic advantages over fiat currencies. Over the next years, we will see blockchain and cryptocurrencies continue to occupy a prominent place as a valuable addition to the global financial infrastructure. Many regulators around the world will start to integrate crypto into our existing financial systems. So, if or when in doubt, I ask you to HOLD BITCOIN & ETHEREUM
