In Crypto patience is not always a virtue

“A patient dog eats the thickest bone”… sounds like an African proverb.

Anyway, I don’t know where, and I’m not even sure if it’s true. It was probably more correct a few years ago. Regardless, patience is a virtue; not always…, especially in crypto.

Bagholders are a special group of people in this space, the most valuable group of investors. Everyone hangs on, at least once in a while. Holding an asset with ‘bad’ results is a struggle between patience and hope…’hopium’. Or the battle between patience and greed when assets perform quite well. Whenever you refrain from pressing the ‘buy’ or ‘sell’ button, either wins. Well, patience is the key word.

It works, in a few cases; other times, just not. A rapidly changing space like the one we have in cryptocurrency is one of those few cases where holding back turns out to be the wrong move in most cases. Gains or losses can occur at any time; unfortunately, these two can happen in (very) rapid succession. Anyway, if you’re here for the technology, profit or loss might matter little to you. It doesn’t sound bad to make a few quick bucks either.

A popular sermon is ‘hold on to life’. Let’s face it, this doesn’t work most of the time. The path to holding the bag is easy. Waiting for millions and settling for a few thousand or hundreds is a quick turnaround here. The greed index is volatile, which in turn results in price volatility. Normal price movements are a response to human behavior. Additionally, a space as unregulated as cryptocurrency may require you to “take what you can, when you can.” There is hardly any guarantee. The extent to which this happens depends largely on the nature of the project.

Highly speculative projects are prone to sharp price changes. They are also prone to ‘accidents’. In most cases, these accidents are intentional and investors are left to mourn their heavy losses. Well, ‘patient’ investors. The impatient have probably already taken all or part of their profits; in this case, they win. This case is becoming more and more prevalent. The non-regulation of space gives way to a short-lived speculative project. Huge pumps, ridiculous landfills. Investors are easily surprised by rapid developments. Here, unfortunately, their patience betrays them.

A pretty smart move is to stop waiting and withdraw your capital when the speculative project moves tangibly. The rest can go together. If there is a drop, your capital is preserved and a small profit if you are impatient enough to take the profit.

This is not financial advice anyway, just a piece of personal experience. Long-term retention of relevant projects could be very beneficial. Finding those projects right from the start could be a very tedious task.


Also posted here.

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