At the beginning of the year, I wrote an article on the 5 key rules for successful investment in cryptocurrencies. In it, I wrote that, in my opinion, it’s much better to invest in cryptocurrencies rather than trade them. I said this because I believe that most beginners lose their money trying to speculate on the crypto market.
So, I’ve decided to reiterate my stance with a particular goal in mind. The cryptocurrency market has been in a downtrend for nearly 3 months now, which has sparked some serious panic among novice investors, most of whom bought their cryptocurrencies at the all-time high prices of December last year. As such, many of them started trying to speculate on cryptocurrencies in an effort to recover their initial investments, i.e. by making short-term buys and sells. This will most likely lead to these novices losing all their funds.
Roger Ver, a major proponent of BCH, explained why cryptocurrency speculation is a pointless venture two days ago. In an interview with Bloomberg, he said that the crypto market can be extremely volatile in the short term and that beginners who try to trade on this volatility are likely to simply lose all their money. Because of this, Ver believes that it’s better to invest in crypto for the long term because the uptrend will inevitably return sooner or later.
This opinion is shared by Litecoin founder Charlie Lee. In an interview with crypto blogger @BitcoinErrorLog, the creator of Litecoin said that he believes that most cryptocurrency speculators will lose all their money sooner or later because the cryptocurrency market is for long-term investment.
I’ve written this article to reiterate my stance that with regards to the cryptocurrency market, it’s better to be an investor than a trader.