What Is the “Buy and Hold” Strategy? An Overview for Rookie Crypto Investors

Anthony Lynch
3 min readJan 26, 2023

As more and more people express interest in investing in cryptocurrencies, numerous pieces of strategic advice from claimed crypto experts are being circulated online. Staking, lending, and yield farming are just a few of the many tips that you have probably already heard from various cryptocurrency gurus.

It feels like the more you DYOR, the more confusing it becomes. If you are among those who feel the same way, I want you to know that I went through a similar phase as well. But know that ultimately, you will understand that how you are feeling now is completely normal.

Now, before you make any assumptions about the context of this blog, let me be clear that I don’t intend to convince you that a particular crypto strategy is the best for you. The sole intention of this blog is to help you DYOR and to somehow lessen your confusion.

Understanding the Buy and Hold Investment Strategy

To anyone who aims for a long-term investment approach, the buy-and-hold strategy might attract them, and will likely opt for it. To put it simply, this strategy requires one to buy certain crypto and holds onto it for an extended period of time, rather than actively trading or trying to time the market. Who wouldn’t be drawn to the idea that the asset’s value will rise over time and that the investor will benefit when they sell it?

In addition, some individuals think that this approach can be less risky than actively trading cryptocurrencies because the investor, once again, is not attempting to time the market and is unaffected by momentary price movements.

Why are some people against the “buy and hold” strategy?

As a person who was able to form a friendship in the crypto space, I have a lot to share about why people may be against the idea behind the buy-and-hold strategy. First is because they believe that market conditions can change, making it necessary to sell assets in order to avoid significant losses. Additionally, some people I know believe that actively managing portfolios can lead to better returns.

One would say that their thoughts about the idea behind the buy-and-hold strategy are somehow valid. If one looks closely, it is possible to infer that the crypto market is not efficient and that there are chances to gain an advantage by being more nimble and active.

But then again, it will still depend on the investment goal and how this information is perceived. One may agree and one may not. Do you share my friend’s perspectives on the buy-and-hold strategy, or do your views differ greatly? I would love to hear your thoughts in the comments section below!

If there is one subjective thought you might want to hear from me before I end this blog, it is that a buy-and-hold investment approach might be profitable for those who are prepared to accept the risk and have a looooooooong investment goal.