Buy and hold. That’s the sensible mantra every investor has drummed into them from the very early days.
‘It’s time in the market, not timing the market that pays off,’ say investment experts, who warn that attempts to trade often leave investors coming a cropper.
But that’s not the view of Glen Goodman when it comes to bitcoin. The crypto expert advocates a long-term trading strategy to avoid the extreme volatility that sees massive swings in bitcoin’s price from its highs to its lows.
I caught up with Glen, the author of newly updated The Crypto Trader book, for this Investing Show interview to find out how he got into trading, why he first started buying bitcoin years ago and why he argues people should trade not invest.
This is a controversial view in both the traditional investment world and the crypto sphere, where bitcoin true believers’ adopt a so-called hodl strategy (as a once mistyped work became an acronymn for hold on for dear life).
This year alone, the bitcoin price has at one point fallen 29 per cent peak to trough and then rocketed 64 per cent to the recent $123,000 peak that it has now slipped back from.
In full-on bitcoin crashes, the price has previously fallen around 50 per cent on a number of occasions and more than 80 per cent on some others.
But Glen also has some advice for those who do want to buy and hold bitcoin long-term and shares his thoughts on how to spot the next peak and subsequent downturn they will need to ride out.
But remember bitcoin and crypto are unregulated, attract scammers, and are extremely high risk. If you are going to buy, always work on the basis that you could lose all the money that you put in – and watch out for scams.
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