Hard knocks tend to teach unforgettable lessons. But as most investors know, learning from someone else’s experience is a much better way to gain hard-earned wisdom than experiencing the difficulty of stumbling on a challenge.
There is a specific lesson in cryptocurrency that most people learn the difficult methods at some point. If you haven’t learned it yet, try your best now before you have to pay the full tuition fee.
Professional cryptocurrency investors usually think of themselves as a bold lot, often believe they are investing in the “funding future” by their assets choice. Many of these investors choose to time their investments based on Bitcoin (Cryptography: BTC) We believe the harving cycle gives the entire cryptocurrency sector a cyclical nature.
Within that framework, they tend to allocate capital between Bitcoin, Stubcoin, and Altcoin. The idea here is that Bitcoin is a long-term investment that is suitable for buying when it’s cheap. Stubcoin is for parking benefits from high-risk plays, while altcoin is a high-risk play that is said to produce a characteristic return. Therefore, crypto portfolios tend to be extremely at risk compared to stock portfolios on average, but even those who are satisfied with the somewhat speculative nature of the space prefer to have a measure of diversification at least.
By spreading their capital to stubcoin, bitcoin and gambling, the aim is to maximize the benefits from crypto volatility, while minimizing the risk of being completely wiped out by the often extreme rotation of the market. For these investors, there is a clear roadmap about where the price of Bitcoin is and, in relation to half of that, when to buy coins and when to offload coins. Therefore, halving occurs around every four years, which roughly targets three to four years for investment.
My dream is to choose an altcoin that goes to the moon. Because these coins are most likely to be experimented with new technologies, other new dimensions, that make them exciting compared to older coins. In reality, most of these coins will go to zero and run badly. Even if you know this fact in advance, many investors believe that it is possible to succeed with their special wisdom.
Take a look at this chart comparing prices for Bitcoin, Ethereum, Solana, Cardano, Chainlink, Tron and Litecoin as of writing on March 14, 2025.
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Bitcoin price data by YCHARTS
It should be noted that all of these coins are the largest by market capitalization or the largest at the moment, and therefore have the largest base of bullish investors in the sector.
As you can see, only Tron had outperformed Bitcoin. If you chose, bought, and held all other assets beyond Bitcoin and Tron three years ago, you are now either underwater, Breakeven, or mediocre profits. And that’s the first element of a difficult lesson.
For most investors, even full-time investors, the odds of exceeding the strategy of consistently buying and holding Bitcoin over the long term are very slim. That’s the second part of the difficult lesson.
It doesn’t matter if you think you know a special fact about half the cycle of four years and how it can affect Altcoins. These unique facts are not sufficient to guide investors to the best emerging asset selection before they are proven. And once they are proven, it may be too late to invest anyway and get the right profit.
Cryptocurrency investors who have learned this lesson have special phrases to show enlightened knowledge. By doing so, they refer to a consistent accumulation of Satosh, the lowest possible percentage of Bitcoin worth 0.0000001 BTC.
Of course, that doesn’t literally mean you only buy Bitcoin and not buying other cryptocurrencies. The spirit of this phrase encourages you not to starve and chase shiny new gambling if you have a proven asset (Bitcoin) that appears to be very likely to offer much safer and much greater potential returns in the long run.
So, knowing this, you should adopt that mindset and accept hard lessons without paying the full price of it. If you’re willing to keep and accumulate, it’s hard to be wrong, and you’re probably better than a greedy investor.
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Alex Kulcidi holds positions in Bitcoin, Ethereum and Solana. Motley Fools have and recommends Bitcoin, Cardano, Chainlink, Ethereum and Solana positions. Motley Fools have a disclosure policy.
1. One simple lesson that most cryptocurrency investors learn hardways
