Is there a strategy for investing in cryptocurrencies? (5) - Ploughing and positional warfare

In investing, belief matters.

I remember very much when I bought Tencent in 2009-10.

It was only $70-80 that year, not broken down. A colleague told me that Tencent pe is over 1000, how long does it take to get it back?

Therefore, my belief in Tencent was shaken, and I felt that my colleague had a point. Back then, I didn’t quite understand that pe was not very interesting to a technology company, so I quickly sold it before I got my money back. …

The result is to lose the first pot of gold in development, haha.

Faith is something that I have said many times in the UK as a fund man.

Especially for coins that are to be held for a long time, this belief is necessary. If you don't have faith in the decentralization, immutability, encryption laws, anonymity and other unique characteristics of coins, it's better to make a short speculation.

In the first article, I have mentioned gold coins, which should account for 50% of the total, and hold them for a long time as an asset store.

In the current high inflation and low interest rate environment, the value of gold is more likely to increase than other assets. But I suggest not to chase high, but to buy with monthly payments or the bear market crash, and store it in the form of storage, so there is no psychological pressure. They are like Tencent ten years ago. As long as they are held for a long time, they will inevitably grow.

Holding for a long time is like a positional battle in a war, sticking to strategic points and slowly advancing to the front. You don't have to go in and out, you don't have to look at the currency price often, and patience is enough.

I used to be in the bear market low of the currency market in 20 and 21, buying $6000 of btc, $400 of eth (before there were a bunch of them bought in 17 years). If there is no belief, it may increase by as little as 30%, and if you hear negative news from others, you will want to let go.

But you also need to know that the currency market can fall by 90%. You have to be mentally prepared not to be shaken away.

capital control

But if you want to sell it, how much do you have to earn before you leave? It's hard to come to a conclusion. Regardless of guerrilla or position, I am used to selling 1/x to recover the cost when the increase is x times, so the financial pressure is not so great.

There are also gold coins, preferably more than 50% of the capital.