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Transitioning From Short-Term To Long-Term Bitcoin Investors

With bitcoin attracting the attention of institutional investors, the interest in cryptos is getting bigger. Bitcoins have risen quickly to prominence in the investment portfolio due to their ability to offer very high returns. Pandemic has been a big catalyst in moving traditional investors into the digital asset space. The initial interest in bitcoin was mostly short-term wherein the investors aimed at benefiting from the volatility involved in buying bitcoins. Most investors who buy bitcoin invest for the short-term and sell these currencies when they achieve a significant return. When bitcoin is here for a decade, it is worth considering long-term bitcoin investment. As you transit from short-term to long-term bitcoin investors, it is important to understand some significant aspects. 

Here are some of the important considerations related to long-term bitcoin investment.

What does the long term mean in bitcoins?

Spectators and investors hold the coins for the short term, usually for up to 155 days. In the short term, investors hold the coins for irregular periods varying from a few hours to a few months. The long term investment in bitcoins means holding them for more than a year. The risk due to volatility is less in the long term than in the short term. Even the transaction costs of crypto assets are in favour of long term bitcoin investment. 

With huge interest from institutional and long term investors, bitcoins can emerge as a long term investment. The supply of Bitcoin is fixed at 21 million BTC. And every four years, the supply is halved, making the BTC scarce. Most altcoins have a similar supply pattern, making them an attractive long-term investment. Most financial advisors agree that blockchain technology is viable for long-term bitcoin investment. Those who have long-term investments in bitcoins have already benefited from the same. 

What strategies to adopt for long-term bitcoin investment?

Short-term strategies for investing in bitcoins involve day trading, arbitrage, quick reselling, and booking profits. These strategies don’t work for the long-term as the investment goals are different. The long-term returns depend upon how established the coin is and its total supply. Bitcoin is a highly established coin as it was the first digital currency. Long term Bitcoin investment means ignoring the extreme swings in both directions. Investors need to avoid panic selling and fear of missing out (FOMO) in the long term. For long-term investment in crypto assets, investors should be prepared to face all kinds of scenarios. 

Apart from bitcoin, there are around 16000 plus altcoins in the market. It is important to make the right choices for long-term investment. Investors need to consider buying those digital currencies with high-quality applications, ecosystems, and strong communities to support them. The well-established altcoins have appreciated radically in the long term. Thus, it is important to select bitcoin and other altcoins with a good track record for long-term investments. Before selecting an altcoin, one needs to consider market share, utility value, transaction value, technology development, and related market news. The long-term strategy should consider the liquidity, reputation of developers, and prospects of future development of the coin. The best coins for long-term bets are Bitcoins, Ethereum, Chainlink, and Polkadot. 

While investing for the long term, it is also important to ensure the safety of digital assets. The trading platforms are vulnerable to hacking or digital theft. It is thus advisable to keep a hardware wallet for your digital assets to ensure their security over the long term.

What are the long-term investment strategies?

Theoretically, a long-term investment strategy is to hold bitcoins. It may seem simple but it’s not so simple to implement. For long-term investment, it is important to research cryptos before investing. Bitcoins are neither regulated nor influenced by the central and financial institutions. Bitcoin’s future depends on the network and its decentralised decision-making process. 

Long-term investment strategies involve keeping track of investment and having up-to-date knowledge of crypto-related news. In addition, in long-term investment, investors need to consider network upgrades, roadmaps, and project development, which could positively impact the price movements of digital coins. 

Earning interest in bitcoin

One of the popular long-term strategies adopted by various investors is to earn interest in altcoins. You can stake the altcoins through your crypto asset wallet to earn interest between 2-10% per annum. Like any other investment, the long-term bitcoin investment is similar to the historical investment strategy for stocks. At the same time, there are significant differences in short-term and long-term investment strategies. Transitioning from short-term bitcoin investor to long-term bitcoin investor requires knowledge and the ability to implement these diverse strategies. Crypto exchange Zebpay can keep your bitcoin secure while offering the platform and support to implement your long-term bitcoin investment.



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