The co-founder of Morgan Creek says its better for retail crypto investors to "HODL"
|If you are an avid user of Twitter then you will often see some crypto traders boast big returns. Now one of the biggest Anthony Pompliano said:
‘Most Investors Would Be Better Off If They Lost the Password to Their Account’
Like with most asset classs many traders and investors dream of doubling or tripling accounts but I think Mr Pompliano thinks patience pays off.
Our very own FX Street analyst Tomas Salles agrees he commented saying:
"Of course, a professional trader, who knows how to get in and out at the right time, can greatly improve the return on investment. But it is not advisable for a majority of investors.". He then added "Large market movements are often unforeseen and concentrated over time. Being out of the market on a few of these positive days can ruin a positive year. When implementing a buy and hold strategy, it must be clear that these are very long-term strategies, as market cycles are temporarily very large."
Some research has been done on the subject by @fundstrat on Twitter which seemed to also back up the theory.
This tweet confirms that most crypto gains have been made in 10 days of a bull run. Dont fret crypto lovers most other asset classes are similar for retail investors the trend really is your friend. The crypto market has taken many victims over the years and as the great Warren Buffet said: "the stock markets is a device transferring money from the impatient to the patient". maybe the same can be related to crypto.
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