Today’s World Doesn’t Value Patience – But It’s a Crucial Trait for Bitcoin Trading
We live in a world of instant gratification.
Thanks to Netflix, there’s no need to wait a week for a new TV episode. Thanks to Amazon, we can buy anything we want on a whim and get it the next day.
But there’s one problem with this hyperconnected, immediate age: We’ve lost our ability to be patient.
In some ways, Bitcoin has exacerbated our newfound impatience. In just under four months, BTC has trebled in price. The crypto markets have swelled as newcomers rush in, hopeful that they’ll make a quick buck. Why wait years for an asset to appreciate, when you can wait days?
But beyond this short-term spike, there’s a small group of people who have found true financial freedom through cryptocurrencies — and they share one common trait.
They think years down the line, they drown out short-term noise, and they never flinch when there’s a bump in the road.
If you had bought Bitcoin five years ago — in February 2016 — a single BTC would have cost you $374. It would have been exceedingly tempting to sell it at the peak of the bull run in 2017, when BTC had surged 5,271% to $20,089.
Indeed, many traders would have ended up kicking themselves when BTC fell by 80% in the following year. Those who lacked patience, and didn’t have a five or a 10-year plan, would have ended up selling a panic — blinded by what’s happening now and failing to think about the future.
Holding firm would have been far more lucrative. Let’s imagine you bought 10 BTC for $374 apiece back in 2016, spending $3,740 in total. Today, that crypto haul would be worth $570,000 — a staggering rise of 15,140%.
Of course, hindsight is a wonderful thing. Not many people would have expected BTC to perform as strongly as it has in 2021. But the foundation of good investing involves meticulous research, examining its long-term potential, and having the mental discipline to stay the course whenever bear markets come.
It’s a hard thing to do, and it takes a lot of skill and willpower. If it was easy, far more people who were early adopters of Bitcoin would be in this exclusive club.
All of this brings us to the present day. Have you established a five or 10-year plan for your crypto investments? Have you got a magic number in mind for when you would sell your Bitcoin? Do you know how you will react in a flash crash — and are you prepared to wait things out in the hope that prices recover?
Patience is a virtue. It’s generally recommended that people invest in the stock market if they’re willing to lock up their capital for several years. The same mentality should be adopted with cryptocurrencies, too.
CrossTower Inc. provides this content for general information purposes, to better inform you on your digital asset investment journey. We do not provide investment recommendations or provide tax advice. Please consult your investment professional or tax advisor if you require assistance in these areas.