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What It Takes to HODL
Investing in Bitcoin has historically delivered favorable returns, including annual gains of 35%-75% over the last 3-5 years.[2] However, it has also involved many significant drawdowns: Bitcoin’s price typically declines by at least 10% three times per year.[3] Like every other asset, its potential investment returns can be thought of as compensation for its risk. Bitcoin investors have been rewarded for HODL-ing over the long term, but they have needed to stomach sometimes challenging drawdowns along the way. The Bitcoin drawdown that began in early October continued through most of November. From peak to trough, ... (full story)