Long-term holding strategy works again
Recently, the cryptocurrency market has once again witnessed the astonishing gains of “coin hoarders”. An Ethereum ($ETH) whale purchased 16,636 Ethereum coins from ShapeShift in 2016 for $5.23 each, for a total investment of $87,006 (approximately NT$2.77 million). This eight-year holding finally began to reap amazing gains in September 2024.
Image source: Etherscan Ethereum whale bought large amounts of Ethereum 8 years ago
At the time of writing, the price per Ethereum coin was approximately $2,292. The holder’s Ethereum holdings are worth nearly US$39.22 million (approximately NT$1.25 billion). Such profits once again demonstrate the potential of long-term holding strategies in the crypto market.
Simple Hold Strategy Defeats Complex Operations
Compared with the success of this long-term whale, many investors who try to make quick profits through complex trading strategies may not be so lucky. For example, in 2020, an investor used an NFT split transaction to purchase a rare “Ape” themed CryptoPunk#2386worth $1.5 million for 10 Ethereum coins. This transaction used smart contract technology. Although this strategy successfully obtained rare NFTs, similar operations often carry huge risks, and a little carelessness may lead to losses.
In addition, some complex trading strategies may have more serious consequences. Take James Fickel, for example. The cryptocurrency millionaire and founder of the Amaranth Foundation once bet $43 million on the trend of Bitcoin against Ethereum, believing that the price of Bitcoin will outperform Ethereum. Eventually, however, Ethereum massively surpassed Bitcoin, causing Fickel's debt to balloon to $132 million, a lesson learned the hard way.
Long-term holding becomes the key to profit
These examples highlight the risk-reward nature of cryptocurrency markets. While short-term market volatility may tempt many investors to try complex strategies, as this Ethereum whale shows, a simple “buy and hold” strategy can also deliver extremely impressive returns. By staying calm and holding crypto assets through the ups and downs of the market, investors can benefit from long-term price appreciation and ultimately achieve impressive financial results.
This investor’s success story has undoubtedly once again inspired many cryptocurrency enthusiasts, proving that in this market full of volatility and uncertainty, long-term holding is not only a sound strategy, but may even become a key way to achieve financial freedom. .
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.
