"Long-term hold" is an investment strategy where an investor buys assets (such as stocks, cryptocurrencies, real estate) and holds them for an extended period, expecting their value to increase in the future despite short-term market fluctuations. This approach is also known as 'buy and hold.'
More details:
The essence of the strategy:
The investor does not attempt to predict short-term market movements or trade actively, but rather selects assets they believe in for the long term and holds them, ignoring temporary downturns.
Advantages:
Simplicity: The strategy does not require active market monitoring and frequent buying/selling decisions.
Growth potential: In the long term, the stock market tends to grow, which can yield significant profits for investors using this strategy.
Transaction savings: Fewer transactions mean lower fees.
Psychological resilience: An investor using 'buy and hold' is less susceptible to emotional influences and panic during market downturns.
Risks:
Loss of value: If the chosen asset does not grow in the long term, the investor may incur losses.
Missed opportunity: An investor may miss opportunities for short-term profit if they do not trade actively.
Wrong asset choice: Choosing the wrong asset for long-term holding can lead to significant losses.
In the context of cryptocurrencies:
The term 'hold' is often used in the cryptocurrency community and can be translated as 'hodl.'
The 'hodl' strategy involves buying cryptocurrency and holding it for a long time, despite market volatility.
This is based on the belief that cryptocurrencies, such as Bitcoin, will increase in value over time.
