In secondary market investments, there are mainly two strategies: long-term holding and short-term speculation. Choosing which strategy to adopt first requires clarifying one's investment goals, determining the holding time, maximum position, and exit conditions.
1. Long-term Holding
The key lies in selecting coins and estimating long-term performance. If one believes that a certain cryptocurrency will outperform Bitcoin in the future and surpass most altcoins, a dollar-cost averaging strategy can be employed, buying in batches to lower costs. Even if the price is temporarily high, there is no need to worry too much, as risks can be reduced through averaging down costs. For long-term investments, the focus is on selecting projects with long-term certainty, setting a maximum position, and establishing pause and exit conditions based on individual risk preferences, ultimately leaving it to time to validate one's judgment.
2. Short-term Speculation
The challenge of short-term investing lies in the timing of exits, as the prices of speculative targets are highly volatile and easily influenced by market sentiment and various factors, with trends changing rapidly. If a trend reversal occurs, investors need stronger exit capabilities. Therefore, the success of short-term speculation relies more on grasping the right entry and exit timing.
In general, the choice between long-term and short-term investment entirely depends on individual market perception. Before buying, one must be clear about whether they are making a long-term investment or a short-term speculation, so that reasonable positions and exit rules can be set according to the strategy.
