📌 What is long-term trading?
Long-term trading, also known as investing, is a strategy that relies on buying assets and holding them for a long period, which may extend from months to years, aiming to benefit from gradual growth in their value over the long term.
✨ Advantages of long-term investing
Does not require daily market monitoring.
Helps to take advantage of major trends.
Less affected by momentary fluctuations and daily noise.
Can achieve strong cumulative returns over time.
⚠️ Drawbacks
Capital remains frozen for a long time.
Requires great patience and not being influenced by short-term market fluctuations.
Assets may be affected by unexpected economic or political events.
🛠️ Essential tools
Long time frames: Weekly – Monthly.
Fundamental analysis: Studying projects, financial reports, economic news.
Economic indicators: Inflation, interest rates, economic growth.
General technical analysis: Major trends and long-term support/resistance.
📊 Common strategies in investing
1. Buy & Hold: Buy a strong asset and hold it for years.
2. Diversification: Distributing capital across several assets to reduce risks.
3. Rebalancing: Adjusting the portfolio from time to time.
4. Dollar Cost Averaging (DCA): Buy fixed amounts regularly regardless of the price.
💡 Tips for long-term investing
✔️ Choose strong assets with solid foundations (such as major companies or leading cryptocurrencies).
✔️ Don't be disturbed by short-term market fluctuations.
✔️ Make your goal gradual growth, not quick profit.
✔️ Always think about risk management and diversifying the portfolio.
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