Accordingly, any such stock with the potential for double-digit swings on a daily basis is one I want to avoid right now.
That pretty much sums up my volatility argument from before.
Accordingly, long-term investors may be enticed to buy the dip with these volatile options right now.
However, I’d like to reiterate that investing in any asset that can have these sorts of short-term moves shouldn’t be considered by those with low risk tolerance preferences.
So, investors who decide to sell Bitcoin after holding it for a year or more have to face the brunt of the new capital gains tax if introduced.
Rather than going YOLO on this trade, putting a small percentage of one’s portfolio in such speculative assets won’t hurt.
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