Tom Lee Addresses One Of The Most Important Aspects Of Investing In Bitcoin
There are a lot of things worth discussing about investing in Bitcoin and whether you should hodl your crypto or trade.
Fundstrat co-founder and head of research, Tom Lee was in the spotlight not too long ago due to a BTC price prediction that he made for this year. He seemed pretty optimistic about the digital asset.
Lee recently addressed which is one of the most important aspects of investing in Bitcoin.
This is owning BTC during its best 10-day streak in a given year, according to him.
During the most recent episode of CNBC’s Crypto Trader, Lee explained why he believes traders should always hodl a portion of their crypto instead of day trading.
“I think that assuming digital assets are early stage, people have to have a portion of it as long-term holdings instead of trading it. Because if you don’t own Bitcoin for the best ten days in any year, your annual return is -25% a year,” he said.
Two main reasons to hodl your crypto
The Daily Hodl reported that the man says this is true for almost all financial assets.
He said that the reason for which people should hodl crypto is partly because of the timing, the best ten days.
The other reason according to him is that it’s hard to know which one of the assets will be the 100,000 to 1 “and so you want to hold a basket.”
Lee also said that he is not planning to offer any forecast on where BTC will be heading in the long run, but he highlighted the fact that BTC’s 200-day moving average is the key trend to watch.
“Technicals are hugely important. And I think the simplest one that has worked both in the equity market, and it works in crypto, is the 200-day moving average. Bitcoin’s below its 200-day moving average, pretty substantially below it right now,” Lee said.
He concluded by saying that if BTC holds $3,800, the digital asset should cross above its 200-day sometime in the middle of this year.
Other than this, there are tons of Bitcoin-related predictions which have been flooding the crypto space lately, and it seems that the overall sentiment is quite bullish.
Andreas Townsend Author
I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.