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Long Term Crypto Investors Shouldn’t Worry About These Things


There is a number of ways people can invest and be a part of the cryptocurrency world. Day trading, swing trading and long term trading are the most common ways in which people invest in the alternative economic system but the extreme volatility of the cryptocurrency world really causes a lot of headache to people with a vested interest in this new landscape. When it comes to long term investors however, the chances of grievances are a lot less if they play their cards right. Here are the things that long term crypto investors don’t necessarily have to worry about.
Cryptocurrency Exchange Hacks
With the increasing adoption of cryptocurrencies, cybercrime has risen. Their new target: Cryptocurrency exchanges. This has been a big problem in the cryptoverse with the Coincheck early on in January being the biggest one yet.
Long term investors can be safe from becoming victims to cryptocurrency exchange hacks. Due to the fact that they’re holding on to their tokens and not trading them, they have no need to store their tokens at cryptocurrency exchanges.
Price Fluctuations
One of the biggest headaches that people who have a vested interest in cryptocurrencies is the volatility of the prices. Bitcoin saw a massive rise in its value in 2017 from being barely over $1000 to being almost $20,000 per unit of BTC. Since then, the price has drastically declined.
For long term investors, this isn’t necessarily a problem. Consider someone who bought Bitcoin when it was $300 per BTC unit. At the time of writing, the price is $6,640 per unit. That’s still a massive 2200 percent profit from when they initially bought their unit.
Fear, Uncertainty and Doubt
Since there’s no backing of an actual valuable commodity for cryptocurrencies, their pricing is solely based on the trust people have placed in them to provide a better economic system than the one we already have. With events like the Facebook and Google ban on cryptocurrency related advertisements, Bitcoin lost 13% of its value within seven days. Despite losses, cryptocurrencies manage to climb back up in value but the fluctuation problem in the immediate sense can give you a heart attack.
Long term investors don’t even have to consider fear, doubt and uncertainty a factor. It doesn’t affect them. They just have to wait it out and let things get back to normal.
Final Thoughts
The key is to really just have a lot of confidence when it comes to the value of cryptocurrencies in the longer run. This is something nascent but definitely looks like something that’s here to stay. The volatility will be there but that does not matter in the long term.