The best investors are Dead People

This could be worth looking at and can we learn from the dead

Are the best investors dead?

According to a random report I found on the google, yes, the best investors are dead people. Back in 2003 Fidelity started to internally track customers' performance and after 10 years in 2013, they released some results. They found that the best performing accounts when from customers that were either dead are completely inactive. Fidelity is a huge investment management institution with tens of millions of customers so they have a massive sample number to test on to give good results.

I know everyone says this but what if you bought BTC when it was under $10 and just clean forgot about it? I see lots of people are holding long term, everything they invest in it for the long term. Nobody invests and thinks, I'll hold a few weeks and then sell it, it's about the long-term vision. The problem is people make new investments with old investments instead of making new investments with new money.

So being completely inactive looks to be the next best thing to being dead. This should be the best option for anyone. We are naturally lazy, anyone remember having to get up to switch the TV channel? What do we do now? "Alexia, open Netflix" and in the future, we might have to only think about it. Doing absolutely nothing is the best thing to do, it's the least amount of work required from you, the cheapest way and yields the best ROI.

Investors that are very active be it through trading, defi, crypto gaming, NFT or everything else are paying lots and lots of blockchain fees. The more active you are, the more of your profits you lose in alot of cases. You claim $5 daily in harvests from somewhere on BSC and you pay $2.80ish (8%) a week in fees instead of harvesting once a week and paying 40 cents plus 7 times less work. What are you doing with your harvests? reinvesting them? cashing them out? More fees again, if you do stuff daily, compounding/cashing out is at least another 7 transactions per week. Bye-bye to another 8% of your profits, that's 16% gone. If you convert harvests/tokens, LP or exchange fees will be attached. 0.5% seems like nothing until you're converting $50k and seeing that you're paying $250 in conversion fees. Bridging between blockchains is expensive also.

(Not so much hidden, more out of mind)

Being active can be expensive so you should take a look at what your doing, claiming every day and paying blockchain fees. Think about it and think do you have to do this stuff every day? Could you do it 2 times a week? 1 time a week? or even 1 time every 2 weeks? If each investment you hold takes at least 2 transactions, one to claim and the other to either reinvest or convert. 1 week is 14 transactions but can be 2 if swapped from daily to weekly. I use farming as an example because that is what is most familiar.

Switching and changing around holdings is where most people will go wrong long term. Any asset from any asset class can pop off at any minute but to take advantage you need to be holding that asset. I dont know the numbers, im sure some nerd has compiled them but im for sure that BTC will have had a small number of best days to be in the market. That means, as an example, you could have been invested in BTC since say 2013 and if you were out of the market for 8-10 of the best-performing days, you'd only have 70-80% of the profit you'd have now from just HODL. When you invest in something, you really need to commit to it. You cant cash it out to fund the next long-term investment?

People recycle money, I do it myself from time to time but I never touch my BTC, it's the only one that cant be touched, added to = yes, removed from = no. We recycle money for profits. Why have $1000 earning 7% when it can earn 20+% somewhere else. Somewhere else's APY soon drops to 7% and then a new somewhere else comes out that's paying 20+%, all the time while chopping and changing tokens for max APY. This is profitable depending mostly on what tokens your using and what you do with your harvest/staking rewards. For most, this will not be profitable as they miss out on the best-performing days of the markets. Even a simple CUB/BNB LP will cut 50% of gains if BNB were to the moon 80% in a day.

Imagine that, the best way to invest is to buy, do nothing and just HODL. I think this is true of all asset classes as in general everything trends upwards over the long term. Time in the market is better than timing the market is the old saying.

There you have it, what do you think about that? It's not only Elvis and Micheal Jackson making bank dead, you can do it too. If BTC/ETH/HIVE (face it, LEO dies with Khal) can last a thousand years, know that there's some wallet out there that is crumbs today but will make to a dead billionaire by bullrun 3025. With that said a billionaire $ in 1000 years might only get you a kingsize KitKat and Capri sun by then. Hey, better than crumbs today 😁

Are you disciplined enough to just do nothing?

Posted Using LeoFinance ^Beta