Why can institutions make money by investing in Bitcoin?
I remember that when Bitcoin fluctuated between 26,000 and 35,000, institutions represented by MicroStrategy bought Bitcoin crazily.
I remember that I told my friends at that time that the cost of Bitcoin for institutional investors was around 34,000, and we can buy Bitcoin around 30,000 anytime and anywhere, so everyone should buy it with confidence and worry nothing. As a result, the market repeatedly jumped around at 32,000, sometimes up and sometimes down, which scared retail investors enough. There were also countless bears around who kept telling you that Bitcoin would be cut in half... As a result, everyone almost missed this round of Bitcoin's big market.
Similarly, when Sun Yuchen bought Ethereum crazily at 3,100, we all knew his purchase price, but the market later fell to 2,800. A group of leeks jumped out to mock Sun Ge as a leek and was cut. However, the slap in the face came too quickly. Later, Ethereum directly rushed to 3,900, and Sun Ge also successfully stopped profit at a high position. No matter what you invest in, you need to judge an investment target. Do you think it has a future prospect and is the consensus big enough? What will be the future price?
If you have identified a high-quality asset, then the next step should be to continue to buy it in a scientific way and hold it until the price you judge. This is the correct investment method in the currency circle.
Why do retail investors lose money and why do institutions make money?
If the timeline is extended, retail investors have more advantages than dealers. Retail investors have their own money and no cost, while institutions have their customers' money and have costs.
Our investment cycle is unlimited, while theirs may be 2 years or 4 years. Regardless of loss or profit at maturity, they must be redeemed. But why do retail investors always lose money? It is worth pondering. Since the first day Lao Li wanted to be a blogger, he has tried to instill this investment philosophy in all his friends.
Adhere to long-termism and embrace mainstream value coins.
