Investors’ insights as regards the ideal time to invest and hodl investments

April 19, 2021 Quick read

Whether you are a small or large scale investor, you should have a vision board since you are investing in crypto. Your insights should be based on theories and most practical examples. Although the crypto space is hugely volatile, it is expedient for investors to have insights. Knowing the ideal time to invest is an essential trait every investor should possess. While it's not advisable to go into all trades, you should have proven templates on how you intend to execute your plans as an investor.


Taking Bitcoin, for example, there have been many investments ranging from small scale to large scale. While some have become successful, others lost track of the way and have gone bankrupt. One of the reasons why most investors fall victim to these seemingly disastrous circumstances is their lack of insights. For investors who invested in Bitcoin in 2009, most of them have probably sold all of their coins when it hits $4000 while some pulled back to weigh their options.

As an investor, you need to take calculated risks. Although, as of 2009, there was no baseline to measure the value of Bitcoin, so peradventure, it goes south; it's all debt. Some investors were ready to take these risks nonetheless.



Reasons why Investors buy and hodl investments

In 2017, more than 60% of investors invested in cryptocurrency, with 56% planning on investing more than 12 months down the line. According to these investors' insights, 41% of them believed Bitcoin is a world changing technology hence, the reason they invested. 22% of them bought Bitcoin as a store of value like silver and gold. 15% got their referrals from trusted family and friends. 14% of these investors got theirs because they believed the price was low at the time and would go higher sooner rather than later. 8% got theirs for purchase and transaction purposes.



How long do investors hold onto their investments – taking Bitcoin as a case study

According to the 2019 survey carried out amongst 1800 crypto investors, 77.9% of these investors believed crypto markets would be gaining a total value of at least 30% in the space of three years. However, another survey in 2017 which posed the question of “how long investors hold on to their Bitcoins” was also carried out, and the result was:


      12% of these investors suggest they'd be holding their assets for more than ten years

      10% fall between 7-10 years

      22% suggest at least 4-6 years

      A whopping 40% of investors said they'd be holding their assets for a year while,

      16% planned to sell their assets in the space of one year.



How can investors hodl their assets for the long-term?



As an investor, the best way to hold your assets for the long term is to be disciplined. Most times, we (investors) get carried away with price as a determining factor. For digital currencies with are highly volatile, it's crucial to understand that the prices are not fixed. It could go all-time high in few minutes and the following minutes, hitting the very bottom of the chart. Price fluctuation should never be a yardstick to measuring why you'd sell your assets. Over time, most long-term investors have grown to understand that holding your assets for the long term is an essential trait to possess. According to the owner of Binance, changpeng Zhao, he stated in his recent tweet they if you panic during every dip, then don't look at the price all day long. Hold, instead of actively trade. (May not be the best outcome for my business, but the best idea).



      Choose a secure network to keep your assets:

Peradventure, you have done your part by keeping to the rules. It would be best if you also considered security. Since digital assets are not visible, there's an urgent need for investors to store their assets in cold chains with private keys. Most traders and investors should choose the most secured network to store their assets. Since you'd be holding for the long term, it is expedient your assets are safe. It is no more news that the issue of security is a tough one for investors and traders. An estimated amount of $1.2 billion in crypto has been stolen over the past four years. Lack of trading pairs, lack of liquidity, and high trading and withdrawal fees are also issues to consider if you want to hold your asset for the long-term.