Long Term vs Short Term Investments

How Do You Determine a Long/Short Term Investment?

Usually, short-term investments are investments held for less than 1 year, while long-term investments are usually held for 3–10 years.
When making a long-term investment, you will probably be looking for an asset that you believe is undervalued or has a lot of potential for the future. Therefore, buying and holding this asset will probably bring you gains over the course of a couple of years.
When making a short-term investment, you will probably be looking for arbitrage opportunities or quick flips.

Long-Term Investment Pros and Cons

- Long-term investments are usually less risky than short-term investments
- You can buy and forget as you are looking at the long run, you don’t need to continuously monitor the market to profit
- Gives you the opportunity to take advantage of both short-term and long-term growth
- It’s the easiest way to grow wealth, with real examples (Warren Buffet, Charlie Munger and more)

Short-Term Investment Pros and Cons

- Your money is invested for less time, enabling you to do more trades and have more liquidity.
- If you are doing really quick trades, it is lower risk than long-term investments


Overall if you ask me, I think I would prefer a medium-long term investment. First off, I’m not really a professional fulltime investor who has time to monitor the market 24/7, and personally I like to create more value for the economy and actually contribute and witness a company’s growth. I think long-term investments are way more stable than short-term investments, with less volatility in total.



Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
The Crypto Enthusiast

The Crypto Enthusiast


Writing all things crypto… Disclaimer: None of my articles are financial advice, please be responsible with your funds and always DYOR!