This is an op-ed by Nicholas Otieno, a freelance writer focusing on financial technology and Bitcoin.
I realize that Bitcoin has become of great interest to many investors. But despite the growing enthusiasm, sharp price volatility remains a source of concern and confusion for many less experienced investors.
The main way that I think can help these investors overcome their issues with Bitcoin’s volatility is to start following principles Bitcoin Maximalists. Below, I’ve highlighted key points I took away from this philosophy that I believe can help more investors find the right path.
Bitcoin Maxis invest in what they understand
Extremists are a group of investors who believe that bitcoin is the only digital asset in demand and that the demand for it will grow in the future. They believe that all other cryptocurrencies are not worth anyone’s energy or time. By my interpretation, this group includes such important names as Jack Dorsey, Adam Buck, Robert Kiyosaki, Michael Saylor, and others.
Maxi only invests in what they understand (bitcoin) now and in the future. According to most extremists, investing in a proven digital asset is safer than doing so for altcoins, which puts investors’ money at greater risk. With the recent rise in the value of Bitcoin, many people are looking for ways to profit from this asset class without understanding how it works. While investors can make fiat returns using bitcoin many ways (such as trading, staking, lending, mining, gaming) maxis prefer to hold the asset.
Most extremists succeed in their investment journeys because they understand their financial goals, the risks involved, and the market as a whole. These contrasting investors are not always the crowd but instead look For opportunities where others may not. Their advocacy for Bitcoin is rooted in a deep understanding of cryptocurrency and the role it plays in preserving and growing wealth. Maxis’ endorsement of Bitcoin is a reminder to other investors to think outside the box. The asset offers unique advantages that can help diversify investors’ portfolios and increase their wealth.
Focus on the process
Maxis’ investment model is simple: buy and hold bitcoin Self-custodial portfolios and allowing it to accumulate value over time. Extremists achieve this through discipline, strong intellectual frameworks, and commitment to the investment process. Following one’s own process and remaining disciplined minimizes the possibility of any potential emotion affecting one’s investment decisions. Maxis’ most important but difficult trait is to have discipline. They look at investing with a long-term horizon, which requires patience but avoids hasty decisions.
The true state of mind of a Bitcoin Maximalist is not about trading in and out investing. This is likely true of other types of investors. But for the maximum, follow the process and have the means of discipline Buy bitcoin When prices fall. Instead of trading after making a quick return, they hold the bitcoin over a longer period, and as a result, they think they will accumulate huge gains.
Maxi believes that holding bitcoin is the best way for investors to increase their purchasing power given the growing user adoption of cryptocurrency. Highly dammed supply 21 million bitcoins.
The long term approach
Many extremals would say that their investment time frame is at least 10 to 20 years. this Long term approach It is the only way that ambitious investors can make big money with Bitcoin. After all, Bitcoin is never about the short term. The maximum does not change their mind just because the entire market is behaving in the opposite direction. And with that conviction within themselves, they hold onto their investment, no matter what.
Michael Saylor Bitcoin fanatic has been described His ownership of Bitcoin as a “family farm” – something an investor should never sell. In the past year, the cryptocurrency market has suffered a major crash, triggered by geopolitical and macroeconomic turmoil. Saylor expressed his disappointment to those who rushed to sell their bitcoins. Maxis’ long-term approach to investing in bitcoin reminds me of the saying that the people who achieve great things are the ones who put their minds to it.
As long as an investor can buy bitcoin at affordable prices, he can make a fortune in the long run. The sooner you invest in bitcoin, the more time you will have to earn returns. And the more time you have, the more profitable your revenue will be. The concept is popularly known as “composite power”, which He works Exactly in the case of Bitcoin. It is one of the basic premises of Maxis investment philosophy.
Bitcoin Maximalists firmly adhere to the aforementioned core principles in their investment journey. When bitcoin investors follow these investing lessons, they are guaranteed to deliver consistently good results.
This is a guest post by Nicholas Otieno. The opinions expressed are entirely their own and do not necessarily reflect the opinions of BTC Inc or Bitcoin Magazine.