Bitcoin has dramatically grown from $200 in 2013 to $97,000 in 2024. But the question is: hold long-term (HODL) or optimize the portfolio by trading cyclically, which strategy is more effective? 🤔
📊 Comparison Results:
1️⃣ Hold Long-Term (HODL):
• Buy 1 BTC for $200 in 2013.
• Current value: $97,000.
2️⃣ Optimal Trading (buy low, sell high):
• Buy 1 BTC at $200 in 2013, sell at the peak price of each cycle, and repurchase at the bottom.
• Current value: ~$1,488,980. 😱
1. Period 2013-2017:
• Buy 1 BTC at $200.
• Sell 1 BTC at $20,000.
• Amount after selling: $20,000.
2. Period 2017-2021:
• Repurchase Bitcoin at the lowest price of $3,000:
20,000 / 3,000 ≈ 6.67 BTC.
• Sell 6.67 BTC at the highest price of $69,000:
6.67 × 69,000 ≈ 460,230 USD.
3. Period 2021-2024:
• Repurchase Bitcoin at the lowest price of $30,000:
460,230 / 30,000 ≈ 15.34 BTC.
✅ Important lessons:
👉 Holding long-term is safer: If you are not confident in predicting the peaks and troughs accurately, hold your assets long-term. Bitcoin has proven its value growth over time. 📈
👉 Optimal trading has high potential but significant risks:
• Requires accurately predicting price cycles, which is very difficult in practice.
• Costs of trading, taxes, and susceptibility to emotional influences. 😬
👉 Focus on a solid strategy:
• If you want to trade, only use a small portion of your assets to reduce risk.
• For the main asset, hold long-term and let time “work its magic”. ⏳
🌟 Advice: Regardless of which strategy you choose, it is important to have a clear plan, discipline, and not let emotions influence you. What do you think? Please share your experiences or investment strategies! 💬👇
#Bitcoin #Crypto #SmartInvestment #HODL #InvestmentStrategy 🚀💰
