Kavan Choksi- Why Must You Think Long-Term For Cryptocurrency Investments?
Many beginners in cryptocurrency investments want to make money fast. Some, on the other hand, create expectations that are unrealistic in nature, wishing to make a million dollars within a short time. However, the reality is that without a systematic trading plan, you will not be able to make consistent returns from your investments, and there is no guarantee you can make it fast!
Kavan Choksi– a business and financial management expert, speaks
Kavan Choksi is a respected name in the business and financial management industry. He has expertise in investments and cryptocurrencies and is cautious of people not falling prey to the hype surrounding the cryptocurrency market. According to him, it is very natural for one to be swayed by rumors and controlled by emotions when it comes to the promise of making fast money in a short period of time. Experienced traders first learn how to manage their feelings, and this should be the first rule for newcomers too.
The significance of a long-term plan for investments and trade
A successful methodology for cryptocurrency investments is to have a long-term trading plan. However, before devising this plan, you should conduct extensive research and analysis. Moreover, long-term investments need patience as the process entails the buying and holding of assets. Several traders in the market often find it hard to stick to their long-term plans as they permanently close the trade when their investment moves 50% up or down, making them miss out on several opportunities in the market.
For instance, Bitcoin, in 2021, faced daily volatility of 4.56%, and it rose from $13,373.71 to $61,374.28 between the period October 2020 to October 2021. This increase was about 460% within one year for long-term traders. Many traders cashed out heaps of assets at a reasonable price. However, they missed out on the more significant gains that surfaced later.
One of the first challenges that small businesses often face is the inconsistent flow of cash. The liquid often becomes a common issue as the small business fails to keep track of unpaid invoices and other business practices that are expensive. In order to tackle this challenge, companies should create a forecast based on their historical and current market conditions. As a business owner, one must consider contingencies like changes in the industry, customer shifts, downturns in the economy, and more.
However, at the same time, traders should not take the word of online resources that teach them how to invest or trade in cryptocurrencies. They should be taken as mere suggestions or recommendations to keep in mind while selling. You are the best judge of how to deal with and manage your funds. If you are a beginner, it is always prudent to consult a skilled financial advisor to help you with the trade so that you do not end up making mistakes.
Do not buy cryptocurrencies just because their prices have dropped
You should never rush into the cryptocurrency market just because there is a dip in their prices. Of course, there is no harm in buying crypto coins when their prices are low if you are in the market with the goal of long-term trading. However, do not make the mistake of using these coins for short-term trading without the correct technical analysis. You will be making a grave mistake if you do and might land up incurring a lot of losses.
According to finance and business expert Kavan Choksi, being aware of how cryptocurrencies work and their response to the current market conditions helps you in a big way to earn lucrative returns in the long run. The goal here is to have patience, observe the market, and never rush for significant gains in a short period of time.