If You Can’t Handle Me At My Worst, You Don’t Deserve Me At My Best

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You’ve probably read this many times about relationships. It’s quite popular as a meme or motivational poster on social media.

I tend to agree with it, but, surprisingly, I believe it applies to many other things, not only to relationships.

For instance, investments. Yeah, I know you didn’t see that coming. But if you think about it, it makes sense.

Diamond Hands That Hodl

Apart from being a very new asset class, or perhaps specifically because they’re a very new asset class, cryptocurrencies tend to be very volatile. Swings of 50-80% are relatively frequent, and many people tend to avoid this market because of that. Stocks rarely see swings bigger than 30%, for comparison.

These volatility periods tend to occur every 3 yeas, I won’t go into details about the tokenomics behind this rhythm. Let’s just observe that every 3 years cryptos are appreciating dramatically, 10x or, some of them 20x or 30x. But this appreciation process comes with a lot of turmoil. Sometimes markets move as much as 20% in one day. There are weeks in which the value of some assets crashes by 80%, which, based on how much they appreciated previously (sometimes more than that, to be true) means they can lose almost all their value.

This is the type of “worst” that I’m talking about. If you can resist the urge to liquidate your position, if you can refrain from panic selling when you asset is performing so poorly, then you “managed it at its worst”. In this case, you should be “enjoying it at its best”. In crypto lingo this is called “hodling”, or “diamond hands”, meaning you’re not parting ways with your asset even under the most difficult conditions.

Time Windows And Affordability

But how can you “manage it at its worst”? Is it a question of pure will? Of blind trust? Of luck?

I tend to believe that the ability to invest in a valuable asset has nothing to do with any of the above. It’s not about will, or blind trust, or luck. It’s about 2 simple things: time windows and affordability.

When you invest in an asset, in this case, in crypto, you should have a very clear time window. Meaning you should look at the maximum amount of time you’re willing to hold that asset. The longer the time window, the bigger the profits. It’s not magic, it’s just statistics. If you look at the top 50 cryptos, you will see they have been around for more than 3-4 years, at least. Bitcoin just made 10 years and Ethereum 6. But if you zoom in, and look at any, let’s say, 6 months period, you will see wild ups and downs. If your investment was tied to that time window, it would have been just as profitable as tossing a coin. Small time windows are unpredictable, but on the long run, every crypto asset (which is not a scam, let’s be clear) appreciates.

The second element is affordability. And this time is about you, how much can you really afford to invest. If you decided on a 3 years time window, then you should be very, very careful with the amount you block. Because you won’t have access to that money for 3 years, and I mean it. Some of my friends are asking me how can they decide how much they can put into crypto (unfortunately, they ask me this during bull runs, not during bear cycles, when the market is really affordable). My answer is always the same: “take some money in your hand, go to your kitchen, and see how much of that money you can put in the garbage can. How much of it you can dispose without a remorse, thinking you already lost it, that’s the amount you should put into crypto”. Many of them think I’m bluffing. I’m not.


Every investment takes time. The increase in value of a traded asset is not happening over night. The price can move a lot over night, it’s true, but that’s not an indicator of the value, it’s an indicator of the volatility. Value is price over time, not price at any given time.

So, in order for something, anything, to accumulate value, you need to give it time and complete independence.

Of course, it’s the same with relationships.

Initially published on my blog.

Posted Using LeoFinance Beta



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10 comments
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Crypto is still a very new asset and it can be hard to know where it will go. I don't think massive future growth is guaranteed, but what do I know? The volatility will scare some people off, but others have made massive profits by sticking with it. It's up to them if they decide to take some of that out. I think you may as well if it can get you things you want/need. You can still stay in the game.

With the smaller coins it doesn't take much for them to make big leaps. We've seen what a celebrity endorsement can do. In the long term it will need more than just hype.

!PIZZA

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You can still stay in the game.

Yeah, at the end of the day is how you want to play the game: short term game and big risks, long term game and small risk.

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I'm risking it all on Hive :) I've bought a fair amount, but probably already had that back when I have spent some. For me it's fun to be part of this thing and that counts for a lot.

!BEER

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Yeah, I have a good feeling about HIVE too. I mean for just over a year, this project grew up really nice. Happy to be a part of it too, ever since it was called differently ;)

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Money also grows over time. Price doesn't increase overnight.

No one can predict what will be the price or value of an asset in future. Time is money. Investment also requires time. Longer the time frame shorter the risk and shorter the time frame higher the risk.

Even for Investment time plays a vital role. For wealth creation, essential part is investing. Investing for short term or long term really matters.

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Investment always need time and patience with the usual behaviour of market and ideal time along with the prediction. Money is not a magic to gain in a single night, but could be turn into magic if you chose the right way, research and analysis statistical data of market. I agree with your words.

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Crypto is like a diamond buried by the Earth only to be unearthed and cleaned up at the right time revealing its true worth. Those who can ride this Holding game out won't regret it

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