If I may ask with our disrupting this thread what is the main purpose of accumulating bitcoin for long term, cause if you are not selling When it's high and making profit or is there something I dont know about the long-term investment in bitcoin and its benefits, cause I'm a little bit confused on why I should be accumulating bitcoin for long term if not to make profit. Are they any hidden benefits of doing this. I'm not a hater, I just want to learn, if purpose is not know then misuse is inevitable. I'm coming to understand how DCA works by going through the thread but, I don't see a place my dcaing ends for me to make profit. I'm not looking for a get rich scheme in bitcoin accumulation. I just want to know the exact reasons that would be motivating everyone to hold for long without any sell plan. I just started investing in bitcoin last week with my first 10$ investment, quite small but its a start since my salary is small for now, I really want to catch up, but I need clarification on this since I'm.beign bothered about it.
Long term investment is the best because it gives you time to be able to learn, invest and grow your investment into a certain height rather than you are buying and selling to buy back again, putting you at risk of running at loss. when you make the wrong moves. Long term investment also lowers the risk in bitcoin investment because the longer the timeline of your investment with size, the higher the risk reduces. This is because from history, it has shown that bitcoin price dip bottom line is always lower than the next circle dip bottom line.
Lastly, there is what is called compound interest, this is the same for bitcoin and this is where long-term investors are happy that they started their bitcoin journey early when the price of bitcoin was $500 and imagine that they are still hodling those bitcoins till now. If you buy $10,000 worth of bitcoin at $2,000 per bitcoin and after 4yrs bitcoin price increases to $4000 per bitcoin, it means that the price doubled and your bitcoin worth will increase to $20,000, which means that you have an additional $10,000 profit and if you don't sell and hodli for another 4yrs, your $20,000 worth of bitcoin investment will have yield a profit of $20,000 based on the percentage price increments for on bitcoin.
If it happens that you buy and sell at every circle, you will be lacking behind in your bitcoin portfolio size and you will make very little profit from each circle compared to the person that will hodli for 8yrs and above. Bitcoin long term investors are building their piling up their profit to reap from it in future when it has compounded to an amount that can change your standard of living and turn your life around. This is why we need to live and invest for the future and not to be after what profit that we will make today with bitcoin.