Alexander Lorenzo argues that holding altcoins through bull cycles can wipe you out. He points to Ethereum's 94% crash in 2018, which would have required a 1,600% gain just to break even. Crypto needs different strategies than stock-market buy-and-hold.
Should we invest for the long run with these altcoins? The main issue with this situation is that you're taking investment principles from completely different markets. In the stock market, this makes sense. Investor for the long run. Of course, Warren Buffett says it. But the problem is, is that Warren Buffett has a lot more capital than you. So for investing for him makes sense. And not only that, but in the stock market, the returns are generally consistent and safe. In crypto, it's not. As you can see right here, this is Ethereum, the second biggest altcoin on the entire market. It's the Safest. This is the safest. And as you can see right here, in 2018 it dropped 94%. To get back the losses for that, you would have to make up for 1,649% increase. To make a break-even on a 94% loss, you have to make 1,600%. So in general, when it comes to crypto, you must use a crypto-specific strategy because these coins will in fact and consistently throughout time all drop 95%. And it is way worse with every other coin except Ethereum. So I highly recommend you refrain from falling victim to the strategy that everybody falls victim to in cryptocurrency when they first start, which is, I'm gonna hold these coins for the long run. This is a narrative that's instilled into the market to help you lose a lot of money
