The adage that time in the market trumps market timing is more true than ever.
according to analysis According to cryptocurrency research firm Ecoinometrics, the difference in monthly returns between bulls and bears is negligible, meaning you’re better off betting on Bitcoin and Ethereum whenever it’s best for you. To do.
Bitcoin and Ethereum have had very similar price performance over the years. Both assets ignore whether markets are booming or busting, with the exception of Ethereum’s first return to the bull market since its launch in 2015.
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For Nick, the founder of ecoinometrics, timing the market is a fool’s errand.he said Decryption, “There are too many uncertainties in the financial markets for that to happen.” It “makes sense” to point out that you adjust your investment strategy depending on market conditions.
Ecoinometrics calls its investments “tactical” and cites two approaches when considering purchases: long-term macro cycles and market liquidity conditions.
William Cai, co-partner at financial services firm Wilshire Phoenix, said the struggle to time the market ultimately comes down to time frames.
“Market timing has historically proven difficult to achieve consistent outperformance, especially over the long term,” Tsai said. Decrypt. Given the fact that crypto assets are still new, he believes that “a long-term horizon and investment horizon is appropriate.”
In other words, just be patient. Tsai’s perspective is echoed by many other successful investors who have criticized investors for trying to time precisely when to buy and sell assets. Instead, they point out that a consistent, ongoing investment approach known as dollar-cost averaging (DCA) is the winner.
Oliver BellisA professional trader with over 37 years of industry experience said: Decryption He has been dollar-cost averaging in traditional markets since 1981 and “never stopped,” he said. When it comes to Bitcoin, this has been his go-to strategy since 2020.
By removing price concerns, “establishing order in the approach to accumulation and, most importantly, eliminating volatility,” the strategy becomes “magical,” he concluded.
