Is long-term investment in cryptocurrency really worthwhile? ｜Questions and Answers

In the past few days, Bitcoin and Ethereum have finally ushered in a relatively healthy correction. Bitcoin fell from a low of $41,000 to $33,000, a drop of nearly 20%, and Ethereum fell from a low of $1,300 to around $1,000, a drop of more than 20%. Led by Bitcoin and Ethereum, the entire market experienced a relatively strong correction.

Seeing such a callback, readers who have read my January 6 article "Analysis of the Currency Market Market in 2021: The Number and Range of Callbacks Are Crucial" should feel calmer. In the face of a bull market, the more such callbacks, the longer this round of bull market may last, and the higher the price of Bitcoin may rise.

Recently, readers have asked a lot of questions, and today I will focus on answering a few typical questions.

1. Why is the CSI 300 supported by the national team?

Not only the Shanghai and Shenzhen 300 Index, but also the Shanghai Stock Exchange 50 Index are supported by the national team. These indexes of national support are generally used in order to restore popularity and calm the panic in the market when the market plummets or the market is extremely depressed.

The most typical example is that when the stock market plummeted in 2015, the market sentiment entered a state of extreme panic. The national team began to enter the market to buy a large number of indexes, and for a time it was forbidden to short the CSI 300 index.

This approach is not only in my country, but also in many countries around the world. It is to protect the stock market of the country from the impact of extreme conditions and ease the panic in the market.

So I say this is the safest investment target in the stock market - with the support of the national team, it is impossible to return to zero.

2. How to invest in the CSI 300 Index?

Many funds in the stock market are anchored to the CSI 300 Index. You can search for "CSI 300 Index Fund" and you will find a lot.

Here is a link to share with everyone: https://zhuanlan.zhihu.com/p/61376430

This link lists dozens of CSI 300 index funds. I suggest that you choose some index funds from big-name fund companies, such as Harvest, E Fund, Penghua, Nanfang, Guangfa, Huaxia, etc.

3. I have kept one currency for three years, and I haven't harvested it yet. what to do?

We have a fundamental premise for long-term investment, that is, the varieties we invest must have the potential to rise in the long-term. Only when we buy such a variety can we hold it for a long-term; if we buy a junk variety, the longer we hold it, the worse we will lose.

I started the regular investment in the Shanghai and Shenzhen 300 Index in the bear market because I firmly believed that with the development of my country's economy, the index would rise again in the future, so I invested in it. It is the same reason why I started the fixed investment of Bitcoin and Ethereum in the bear market, and I firmly believe that they will definitely rise in the future.

For the varieties that I am no longer optimistic about, I don't care whether they will continue to rise in the future, and I will sell them immediately. When I resolutely sold EOS in the early years, I was not optimistic about its future growth. Although its price was still rising after I sold it, I ignored it.

4. How to define the buying and selling criteria of digital currency? Is long-term holding really worth it?

In my opinion, the criteria for buying and selling digital currencies are very similar to those of the stock market, that is, to look at market sentiment. Market sentiment is the easiest to reflect from the public media, and it is also a standard that we can easily grasp.

When we see that Bitcoin mining machines start to sell by the catty, we can safely enter the market to buy. When we see retail investors rushing into the market to buy coins in a panic, then we must start to be cautious.

Based on the current market conditions, has Bitcoin reached its climax? I don't think so far. Because in the past two days, I saw a certain traditional female celebrity in the financial industry still discussing in a public meeting: "Can I buy Bitcoin now? That's a big pocket, ready to cut people"; let's look around, at least Nobody around me talks about Bitcoin, only the occasional press.

This sentiment is obviously still in its early stages. When we see those so-called experts who don’t understand Bitcoin at all start to talk about the value of Bitcoin, and retail investors start to ask how to buy Bitcoin, then we should be cautious.

Is long-term investment really worth it? My own investment experience tells me that yes, and I have experimented with this method in multiple markets, and I will stick to it.

Here I want to emphasize again: I absolutely do not deny short-term investment and technical indicator analysis, but short-term is not suitable for me. I believe that there must be some people who are not used to long-term investment and fundamental analysis, but are proficient in short-term hype and technical indicators.

So the most important thing for everyone is to find a way that suits them. In the field of investment, there is no uniform standard answer, and there is no one-size-fits-all method.