GUEST POST: Playing the crypto-currency game like Warren Buffet

By Alex Mirzaian, Crypto-Currency Researcher.

Being able to weather many markets is not easy. When it’s going up it seems like a breeze on a nice sunny day. When it’s a bear market, you start to freak out and get emotional. Since the early 1900s, the stock market has done the same thing that many investors have been confident about, going up and down. There are cycles of the markets going up for a brief period and markets going down for a brief period. This is the exact reason why your best bet is to hold your crypto-currencies for the long term rather than look for quick profits.

Play the game like the best

Almost everyone can agree that Warren Buffet is the best investor. He’s very confident in the stocks he picks and that’s because he’s picky, which is why he has picked such few stocks over the years. The reason for this is that, over time, the market does better than the last cycle. Every market cycle lasts about 5 to 8 years before it goes through a crash. When it crashes, it has always risen more than the last cycle had and this accumulates. Over time you realise you have averaged 8 to 10 per cent. One of Warren Buffet’s best-known quotes is, “The stock market is a device for transferring money from the impatient to the patient.” This is a perfect reason why day trading won’t get you farther than buying and holding.

Emotions and money should never mix. Getting emotional over something can mean you make impulse decisions and that’s always a bad idea when there’s money involved. Being passive about your money is not a bad idea if you can wait that long for your money to come out. Warren Buffet has even said that he doesn’t earn any income from his company but his favourite investments are those that pay some sort of income while maintaining the business. This can be a farm or real estate. Passive income with crypto-currencies can be achieved by mining bitcoins, staking, forks in cryptos and much more.

Do your own research

Always remember to never go into an investment blindly or by speculating. That is the easiest way to lose your money but, more importantly, don’t put in more money you’re willing to lose. That can make you more emotional when the market is down. You want to be able to dollar-cost average by buying continually, buying more and more over time.

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