Shelby M.C. Davis says, “Invest for the long haul. Don’t get too greedy and don’t get too scared.”
And Warren Buffett believes, “The stock market is a device to transfer money from the impatient to the patient.”
So? Do these investments gurus’ pieces of advice suggest that long term crypto currency investments are better than investing in crypto for the short term?
You would find your answer after considering the following factors;
1. The size of your net worth..
2. Your personal investment goals
3. Risk tolerance.
1. The size of your net worth.
Someone in a weaker financial situation would more likely want to invest in crypto for the short term as opposed to a higher net worth individual.
You wouldn’t want to tie down your money in a long term investment in crypto currencies when you have many needs and wants competing for fewer funds in your possession, would you?
Building your financial fortune quickly would certainly be one of your personal investment goals.
2. What are your personal investment goals?
Your investment goals are a product of your present financial situation.
A long term investment in crypto would be one of your investment goals when you’re in a stronger financial situation.
After assessing your net worth and investment goals , you may want to assess your risk tolerance before deciding on either short or long term investment in crypto.
3. What is risk tolerance? This is your ability and preparedness to absorb a decline in the value of your investments. It varies from person to person.
Disclaimer: Financial information published here is only for informational purpose and not an investment advice.
