What is a Long-Term Investment?

From an investor’s point of view, long-term investing is investing by accepting the desired amount of risk in order to potentially get more returns. An investor who wants to invest long-term must hold on to his or her holdings for at least a year or more. Long-term investments carry less risk than short-term investments. The main reason for this is that investment instruments are not affected by market uncertainty to a great extent, in other words, they can be said to be stable. 

Long-Term Investment Advantages

Long-term investing has significant advantages for investors who are trying to take advantage of market timing that day traders on short terms do not benefit from. If we talk a little about the advantages of investment;
 

  • Traders who choose to trade in the short term have to pay the set fees and commissions for each trade they make. In contrast, investors who choose to trade for the long term do not cover these specific fees that they do not trade continuously. Thanks to this situation, investors save a great deal.
  • Unlike short-term investments, investors can create 2 different sources of income in long-term investments. The first is market capitalization. A profit is generated by the rise of the market value. The other is dividend yield. In other words, investors can earn double income as a result of long-term investments.
  • Another advantage is that it is not affected by short-term price fluctuations. 
  • In addition, one of the important factors of long-term investments is that all or part of the mistakes made can be corrected. The reason for this is that there is enough time. 

     

What Are the Strategies for Long-Term Investments?

First, one of the most important strategies for long-term investing is to stabilize the financial situation. In other words, if the investment is not in balance, it means focusing too much on  certain investment vehicles or continuing with an uncertain strategy. As a result, risks increase and investors can make huge losses. For this reason, it is necessary to evaluate the investment instruments in a balanced way in the portfolio in order to ensure balance in investment. It aims to bring together the investments in a portfolio so that the risks and returns are at the same level, that is, to make a balanced investment.

Finally, being aware of and understanding the risks well can be considered as an important element when investing for the long term. Although long-term investment vehicles are known to carry lower risk than others, every investment vehicle carries risk. For example, stocks are often much more risky than bonds. For this reason, investors may choose to include a smaller proportion of stocks in their portfolios. When starting to invest, it is very important to compare the risk ratios of each investment vehicle and to be aware that almost all of them are risky.

 

 

Grayscale’s Mixed Crypto ETF Gets SEC Approval – SEC Plans to Speed Up Crypto ETF Process
SEC Approval for Grayscale’s Mixed Crypto ETF The U.S. Securities and Exchange Commission (SEC) has “expedited” approval for Grayscale’s Digital Large Cap Fund, which is comprised of 80% Bitcoin, 11% Ethereum, and the rest altcoins like Solana, Cardano, and XRP, to convert into a spot ETF. The fund, which currently trades over-the-counter (OTC), will now be available for exchange-trading. The move...
First Solana ETF with Stake Rewards Coming to the US - Robinhood Expands Crypto Move with ETH-SOL Staking and Tokenized Shares
First Solana ETF with Staking Rewards Coming to the US Rex Shares and Osprey Funds are preparing to launch the first US ETF that offers direct exposure to Solana and staking rewards. The fund, announced as the “Rex-Osprey Solana + Staking ETF,” will hold SOL assets through a subsidiary in the Cayman Islands and aim to generate returns by staking at least 50% of those assets. Unlike traditional spot...
What is the Travel Rule?
With the introduction of crypto assets into our lives, many habits in the financial system are changing. However, these new technologies also bring some risks. Anonymous transactions, uncontrolled money transfers, and regulatory gaps. This is exactly where the “Travel Rule” comes into play. Developed to increase transparency in financial transactions and prevent illegal activities, this rule is starting...
Weekly Crypto Market Reports: June 23, 2025
In the crypto market report covering the week of June 23-30 prepared by the ICRYPEX Research team, we have compiled current developments regarding crypto assets, price movements of crypto assets, and macroeconomics. You can take a look at the general flow of this report immediately below and reach all the developments that took place in the 7-day period from Weekly Crypto Market Reports: June 23-30,...
Ripple and SEC Withdraw Appeals - Solana and Ethereum ETFs with Staking Yields on the Way
Ripple and the SEC Withdraw Their Appeals Ripple and the U.S. Securities and Exchange Commission (SEC) have mutually decided to withdraw their appeals, officially closing the 5-year-long lawsuit. Ripple CEO Brad Garlinghouse announced this decision on social media and stated that the SEC had also dropped its appeal. Thus, the years-long legal uncertainty about whether XRP was considered a security...


Create an account

Now create an account where you can use your knowledge.