We all know crypto is a wild ride, but one Ethereum investor's journey really hits home about the power of just sitting on your hands. This guy forked over $151 million (yeah, you read that right) back in September 2022 when ETH was around $1,567. Fast forward to today, and he’s laughing all the way to the bank with a cool $131 million profit. Let’s break it down.
The Case Study: Bold Moves During Bear Markets
So this investor made his move during a pretty shaky time for crypto. Most people were panicking and selling off their assets like they were on fire. But not our whale friend here. He bought 96,639 ETH and decided to hold through all the ups and downs.
Two years later, ETH hit $3,062 and he sold off 70k of his holdings. That gave him a profit of $214 million! And just in case you thought he was done, he still has 26k ETH left in reserve worth about $68 million.
Why Holding Might Be Better Than Trading
Now, I know what you're thinking: “But what about active trading? Isn’t that where the real gains are?” Well, maybe… but also maybe not.
One big advantage of holding is avoiding those emotional gut reactions that can lead to bad decisions. Panic selling? Yeah, that’s how I lost my first few hundred bucks in crypto back in 2018.
Plus there are transaction costs to consider. Every time you buy or sell there’s a fee involved (hello gas fees), and those add up fast if you’re an active trader.
Of course there’s also the risk that things might go south while you’re holding… bear markets can be brutal after all.
Enter International Crypto Banks
This is where international crypto banks come into play. They offer secure custody services for your digital assets so you don’t have to worry about losing everything to some sketchy exchange collapse (looking at you FTX).
These banks even let you stake your assets for additional rewards! And they’re operating under regulations designed specifically for them—so they’re probably not going anywhere anytime soon.
Final Thoughts
The story of this Ethereum investor serves as a powerful reminder: sometimes doing nothing is the best course of action. Of course it helps if you’ve got conviction in what you're holding—and maybe a little bit of luck too!
Whether you're an active trader or prefer to HODL like our whale friend here it's crucial that you understand both strategies before diving headfirst into this crazy world we call crypto.
