Buy & Hold Strategy

If you are looking for a low worry, low mind share method, this is for you.

Set a few parameters and forget about it, until x parameter is hit.

  • Buy bitcoin today
    • Decide how much, 10% of your portfolio?
  • Store bitcoin, buy a Ledger Hardware Wallet
  • Sell bitcoin
    • Option A: Sell when price = x or greater
    • Option B: Check in and sell x years later


Option A: Pick a Price

I’m going to keep the numbers round, to keep the maths straight forward.

Buy 1 bitcoin today for $10,000.

Decide on a price you would be happy to walk away with for your time, effort and opportunity cost.

$100,000?  That is a 10x gain.

That number sounds crazy!  How did you come to that!” – Great question, and a worthy one.

If you took $10,000 to invest today, and say you agreed that bitcoin’s market cap would eventually hit golds market cap of $9.5 trillion.

[Total number of bitcoin] divided by [Golds market cap] = [Price per bitcoin]
21,000,000 / $9,500,000,000,000  = $450,000 per bitcoin.

Personally, I don’t think it is unreasonable that bitcoin as an asset class might hit that number.
It might go higher than $450,000.  It might not hit $100,000.


Option B: Sell in 5 Years

Pick a time frame.  Set and forget.

The next halving is expected in 2024.  That seems like a fair amount of time.  It will probably go rather quickly.

Take the emotion out of the process, decided you will sell on a particular date and call it quits.

Or you could check it every year, and decide if you are happy with the returns, and sell when you are happy.


Why Do This?

Trying to time the market is hard.  But over the last 10 years, being in the market and holding has been the best strategy.

I have spoken to a number of people who think bitcoin will increase in price.  But they don’t want to think about it.  Sometimes there are misconceptions they have to be trading it, checking the price, be ready for the exact day to sell.

The people who lost money, generally bought at a high price and sold low.  Why do this?  FOMO?  or using money they couldn’t afford to use or loose, and being forced to sell at bad times.


How to Buy & Hold

Buying is often locally determined.  But try to buy from a reliable source.  There are more on / off ramps than ever before.

If you are happy to just stash that bitcoin away.  Buy a Ledger Hardware Wallet.  Learn how to use it.  Back it up.  Store it well.

Here Be Dragons

Take responsibility for yourself, everything you think, say, do.  Greatest lesson ever learned.

Do research.  Question everything.  Decide where you are going, and set your sails.