India plans to ban private cryptos. Local market crashes, withdrawals blocked. After China, the second most populous country following the same banning policy. That is 1/3rd of humankind out.
Depends on where you buy and hold. If you bought at the infancy or the bottom of a bear market it is hard or near impossible to outperform that. Trend following systems while on paper outperform buy and hold but it is curve fitted to more than a decade worth of btc prices data. If you were to use the system while the market is at play it is different and you have to continue to optimize the strategy. Consider emotions, human mistakes, stress, trading fees, slippage and liquidity issues (at the start) maybe just maybe the perfect trader with the perfect system would eek out a tiny bit more profits than someone who buy and hold. But why earn 20% more for 10 times the work?
No one truly knows until it's played out. That is why trading/investing is part art part science. If someone is well to do, dumping $1k on something that looks like a promising revolutionary idea like btc isn't far fetched.
Trading will always outperform buy and hold if you have wild swings. You said yourself that on paper trend following systems outperform. You don't optimize the strategy in real time you follow it. I'm not talking day trading. Do it weekly. What stress? follow your plan. 2 reasons to do the extra work. 20% more is a good one. No stress when the market is trending down because you are not losing part of your net worth each week. Drawdowns with a trend following system are usually less.
You keep saying this in all the threads here. Do you understand their definition of private cryptos? I think obviously not. With the US Goldman sachs and Fidelity's worldwide reach in financial markets and especially those in India, do you think Bitcoin and Etherium are private? No! Do you read?
I don’t think there’s any benefit of holding crypto. You never know when the government will wake up and ban it in your country. Trade it and earn as much as you can until you’ve got the time.
@HolyGrailSeeker the events of the past few weeks show how difficult it is to hold btc from pennies all the way to now? Imagine holding 10,000 btc's at $1,200 ($12M) and watch it drift down to $1.5M over the course of 2 years (2014-2016) Or see the value from $170M all the way to $35M (2018-2019) And now, from $690M all the way to $420M in a few weeks time @nooby_mcnoob How many thousands of btc's did you own at pennies and what was your reason for selling at a few $ price/btc? Would love see your perspectives on this
Yes, it is hard to hodl. But if you really believe in it you should. This is no different from billionaires whose company stocks they own fluctuates in the billions. If you want to get to the point of being f**k you type of rich, then you have to learn how to deal with the fluctuations emotionally. Or in your above case, just cash out the $12 million if you think that is money that is good enough to last your whole life.