What is the meaning of long-term in cryptocurrency (What is the meaning of long-term and short-term)?

08/16/2023 03:28 • Tech Trends • 58 views

In recent news from the cryptocurrency circle, long-term investment in digital currency is a complex and profound investment strategy. What does long-term mean in cryptocurrency?

In the investment market, “short-term upward trend” or “medium-term downward trend” is usually referred to as swing trading (simply put, it means chasing price increases and selling during price drops); in the stock market, “long-term trading” (usually refers to operating on a specific project for a longer period of time). If an investor values the long-term value of a project and believes that the success rate of the project can exceed any other company’s, then he is likely to set the target price at 1 million yuan or even higher, resulting in higher investment returns compared to other similar products.

What is long-term and short-term

We know that there are two differences between long-term and short-term. The first difference is the driving force of market sentiment: judging whether a price is reasonable or not; the second difference is a technical analysis method used to measure an investor’s behavior.

The so-called “trend” refers to the trading behavior that occurs in a series of market movements, usually going through multiple stages or cycles of adjustment. In different time periods, the trends often have certain correlations (such as intraday fluctuations, weekly candlestick up).

These two forms have some essential differences: (1) changes in fundamentals and (2) changes in the structure of the short-term market, etc. For example, after Bitcoin reached a historical high on January 19th, it started to decline, while other mainstream currencies experienced obvious declines. However, as the market’s interest in Bitcoin continues to grow, this situation is also increasing. (Note: 5 years ago, BTC rose from $10,000 to a peak of $20,000, an increase of more than 80%).

Therefore, in such a situation, if one does not consider changes in fundamentals and cannot even see any support level, then it would be appropriate to make a small rebound! So, the so-called long-term and short-term refer to the time period in which the investor believes in the correct direction and can make wise investment decisions, which is the balance point between long-term and short-term.

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What is the meaning of long-term in cryptocurrency (What is the meaning of long-term and short-term)?

What is long-term and short-term

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