Warren Buffet, the CEO of Berkshire Hathaway, in one of his interviews, reveals that prospective investors always make a mistake by procrastinating buying Cryptos. He says that the people do this in anticipation of a bullish market trend.
However, Warren Buffet says that staying out of the game for long has zero leverage on future investments as the Cryptocurrency market is an area for long term investments. Investors can attest to this fact by analyzing the long-term graphs for various digital assets to note that the earlier a person buys Cryptos, the more the future rewards he/she accrues over time.
Short Term Buyers Should Be Cautious
All Cryptocurrencies such as Bitcoin and Ethereum have progression graphs that show alternating periods of bull runs and bear cycles. In some instances, there have been sharp surges, but the market has, in most short-term sprees, corrected itself and all the short-term gains have been eroded.
On the other hand, market indicators such as the relative strength index, and moving averages show forecasts that can be achieved only to be reversed by minutes of negative press or events such as the Bitfinex scam or government regulations.
These rationales should, therefore, put short term buyers on notice as this kind of quick investments and quick returns is a real gamble that can go either way. Above all, since the motive of investing in Cryptos is to get returns, short term buyers should be cautious to avoid losses.
Short Term Investors Should Buy At A Dip
The Crypto market’s rule of the thumb is to buy at a low price for selling at a higher price.
Low price points occur when there is a dip or a bear run, and all indicators then show that a level of support has been achieved and a breakout to a bull run is next. This is the optimal strategy to reap gains.
On the flipside, no one can accurately forecast for how long a bull cycle will go. Therefore, on the same day, a peak price may be achieved and a correction could erode all gains and even go below the initial level of support.
Nonetheless, short term buyers are advised to study all curves and buy when the vertical line to the left of the ‘v’ of ‘u’ shape starts to form.
Long Term Investors Should Invest “Now”
Warren advises long term investors that it always a good time to invest in Cryptos. He refers to a period when BTC was trading at $1,000 before declining by 80%. At the time, short term investors incurred massive losses.
On the other hand, long term investors ignored the fall and went on holding onto their Digital Tokens. The price later recovered and in December 2017 and early 2018 BTC had a bullish momentum and hit a high of about $20,000.
Summarily, Cryptos can fall far below their selling price but recover in time and the cycle will always continue. All that investors need to consider is to strategize for either a short term or a long-term investment.
Meanwhile, Warren Buffet is advising that a long-term trade has a higher return and the best time to invest is “now”.