The financial foals should be parted into two, short-term and long-term goal then only it is possible to achieve them one by one but most of the retail investors including crypto community set their goals longer but they miss to see the obstacles in the near future such as sudden changes in the market which will make them to panic and make wrong choices which will go against what they planned initially.
I think I will disagree with you on this becausen in as much as our financial goal on investment is making profits but considering a short-term investment as a back up investment is not ideal for me.
From your statement you mention the obstacle or challenges for long time holding is a sudden change on market, perhaps you are misunderstanding short-term to long term holding because there is know way you could be affected by a sudden market movement when you are holding for long.
Well it depends on your definition of short-term investment because as an investor the only way to be at peace and free from price panicking is by holding for a long time because achieving anything on short-term investment on Bitcoin is like a gambling but if you hold you will likely see the benefits.
I told in terms of a broader perspective not just for the crypto and its important to note that I am saying it for the retail investors.
This is a fair clarification in terms of some kinds of investment principles and practices are going to be generally applicable across all forms of investing... There still are needs to distinguish between timelines, which you seem to be pointing out... and so there might be some kinds of investments that people make that have very short timelines, and so the shorter the timeline, then maybe the distinction between investing and trading (even gambling) will become blurred if people are getting in and out of some of their investments because they consider them as short term plays.
Parting goals into long-term and short-term can also be applied to HODL, for example, let's take one year as short-term and 10 years as long-term and their goal is to accumulate 5
BTC. It is important to have a goal of accumulating a certain amount for every year according to their risk tolerance then only it is possible for them to achieve their ultimate goal of accumulating 5
BTC.
If they don't have any plan but only have the goal of accumulating 5
BTC at the end of 10 years their goal may look out of their reach so set the tone gradually then only it is possible to reach great heights as a bitcoin retail investor.
True, but you don't literally have to categorised it as short and long term, since you can accumulate daily to get to your desire investment plan amount.
I prefer you use the term
accumulate to your desire investment amount, this makes simpler for everyone to get your point easily.
Sudden change of price does not affect short term and longer term investment but only traders. Also wondering someone who is HODLing bitcoin will now be affected by FUD, someone HODLing should have set an investment plan goal to achieve and not worry about FUD that leads to panic sell since bitcoin is not altcoin