Imagine you are building a house. Brick by brick, you invest time, effort, and money to erect something solid and lasting. Now, imagine that the price of bricks starts to fluctuate in the market. One day, the value goes up; the next, it falls. Would you abandon your construction and start selling the bricks you have already bought, just because the price fell?
Probably not.
This is the logic that many investors forget in the world of cryptocurrencies. When markets face a drop — often natural and expected in economic cycles — some panic and liquidate their positions. But those with a long-term view understand: corrections are part of the wealth-building process.
Correction is not collapse!
Just as the value of a brick does not define the quality of the house under construction, the momentary price of an asset does not define the success of your strategy. The important thing is to remember the purpose: if you are investing for the long term, each 'brick' (or cryptocurrency) is part of a larger structure, which takes time to complete.
Selling in the middle of a drop, without a clear strategy, is like dismantling walls that you spent months building — just because there was a temporary change in the cost of materials.
The difference between building and trading
This does not mean you should be completely passive in the face of volatility. Just as a good architect adjusts the pace of construction according to the budget and market prices, a good investor can set aside resources to take advantage of short-term opportunities.
The key is balance: keep the solid foundation of your house (your long-term portfolio), but reserve a liquid part of your portfolio to act more agile — buying on the drop and taking profits in times of high, if that is your profile.
Smart strategy: portfolio division
A common practice among experienced investors is to divide the portfolio into two parts:
Building portfolio (long term): here are the assets you believe in for the future. They are bought with a vision of years ahead.
Maneuvering portfolio (short term): this is the liquid part, available for quick trades, taking advantage of market movements with discipline and risk control.
In this way, you avoid impulsive decisions and transform volatility into a tool, not a threat.
Building a house takes time. Investing does too. Fluctuations happen, but they shouldn't distract you from your focus. Instead of selling your 'bricks' at the first drop, continue to follow the project, adjusting strategies and, most importantly, investing with awareness.
In the crypto world, patience and preparation make all the difference.