The Power of Buying and Holding – Part 2

Example: Bitcoin.
Article written in April 2021 and [edited] in February 2022.

In this article, I want to highlight why patience is key to generate significant wealth by investing.

💡 Would you be rich if you invested $1,000 in Bitcoin (BTC) 10 years ago, in April 2011?

Setting up a bit of context.
About 10 years ago, in April 2011, one Bitcoin was worth $1.
Today [in April 2021], one Bitcoin is worth about $60,000.
So, if you invested $1,000 in April 2011, today [in April 2021] you would have $60 millions worth of it.

So Nico, it’s obvious, if only I had invested in Bitcoin 10 years ago, I would be rich!

Is it though?

The truth is, most people would never realize such a massive profit. Why?

Simply because people are not patient enough to wait until their assets reveal their true potential.
❌ If your target was x2, you would have sold too early.
❌ If your target was x10, you would have sold too early.
❌ If your target was x100, you would have sold too early.
❌ If your target was x1000, you would have sold too early.
❌ If you were afraid of pullbacks, you would have left the boat countless times. After all, Bitcoin keeps on going up and crashing, going up and crashing.

💡 Oh… So, how to become rich with investing?

✔️ Invest in assets with strong growth potential, and hold them beyond the daily / weekly / monthly turbulences. Aim for years of holding.

✔️ Invest more during red days, because the biggest profit opportunities come up during red days.

✔️ Aim to grow your portfolio, not only by profit and compound interest, but also by adding funds regularly (at least every month).

Please note that I used the example of Bitcoin in this article because of its spectacular growth in the past ten years, but other assets work the same way.
Ex: Amazon stock was trading at $1.5 at the IPO in 1997, and now trades around $3,000, which is 2,000 times the initial price.

I hope you will find these ideas useful.

Thank you and trade safe!

Nico