"Key Insights: A disciplined crypto investing strategy is proving its worth again"

A disciplined crypto investing strategy is proving its worth again, as Ethereum (ETH) price's 20% rally in early May 2025 rewarded long-term holders

A disciplined crypto investing strategy is proving its worth again, as Ethereum (ETH) price’s 20% rally in early May rewarded long-term holders who stayed the course through recent market turbulence.

On Friday, May 9th, Ethereum Price climbed roughly 20% in a single day, jumping to about $2,445 per coin.

On Friday, May 9th, Ethereum Price climbed roughly 20% in a single day, jumping to about $2,445 per coin.

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Relative strength in ether also helped boost several altcoins, such as Solana (SOL), Dogecoin (DOGE) and Cardano (ADA) – each of which gained mid-single-digit percentages on Friday as the broader crypto complex surged.

Indeed, trading indicators reflected the broad move: CoinMarketCap’s Altcoin Season Index rose quickly from 23 to 39 in just a few days, signaling unusually strong breadth.

In plain terms, nearly every token was higher on the week.

In plain terms, nearly every token was higher on the week.

Now, this kind of wild, fast rally illustrates quickly how the market can move – and how nerve-wracking it can feel to watch prices swing.

Yet history shows that volatile bull runs often reward the investors who do the least. Behavioral finance offers a famous insight here.

A so-called “dead person” study by Fidelity, one of the largest asset managers in the world, found that the best-performing brokerage accounts over a ten-year span were ones where the owner was, ironically, inactive or even deceased.

In other words, doing nothing beat constant trading. The Fidelity data showed the highest returns came from forgotten accounts – owners who simply left their money invested and let compound growth take over.

The runner-up best returns, not surprisingly, were from people who had also forgotten they even owned the account.

That finding matches what we know about market psychology. In a volatile bull run, every day brings fresh headlines and whims.

News or speculation can drive prices up or down on a whim. But frequent trading tends to invite bad timing. As one industry observer put it, “because of our behavioral biases, we often find ourselves buying high and selling low.”

Humans are prone to panic-selling the dips or chasing after the latest spike. By contrast, the “dead person” investor doesn’t watch the charts – they simply stay invested through ebbs and flows. Over long periods, that passive stance often trumps active timing.

The recent crypto rally is a real-world test of this buy-and-hold mindset. Those who held through the pain of last year’s bear market are finally reaping rewards.

Ethereum’s 20% leap came after months of doubts, and it wiped out massive, short positions in minutes. In the same rally, even smaller altcoins spiked double digits, lifting portfolios across the board.

By contrast, a trader who tried to pick tops and bottoms might have missed the move or reacted too late. Staying put was the simple crypto investing strategy that worked best this time around.

Now, this isn’t a fluke. Crypto history is full of big swings where patient holders win. For example, look back at Bitcoin and Ether cycles: prices often overshoot on the way up or down, only to continue moving towards the north in the long run.

Investors who “sell the news” or try to time the exact top usually underperform. Academic research has long warned that missing just a handful of the market’s best days can slash returns.

In bull markets, the handful of biggest up-days often account for a huge fraction of a coin’s lifetime gains. By sitting it out, the faithful “HODLer” (a crypto slang for a buy-and-hold enthusiast) avoids the urge to jump ship at the worst time.

As one crypto pundit notes, if an asset grows fifty-fold over a decade, there is simply no need to trade it day to day – you just let compound gains run.

So, in this run-up, the key lesson for crypto investors is patience. The data suggest that the best strategy in a fast-moving bull market can be to do nothing. A report by my colleague Godfrey Benjamin in September, shows that 65% of crypto investors are HOLDERS.

History and behavioral studies line up on this: when markets roar ahead, the most successful accounts are often the ones of people who took a hands-off approach.

It’s a counterintuitive insight, but a powerful one. As Ethereum and its peers rally, it seems the “buy and hold crypto” strategy is paying off for those who behaved like, well, dead men – at least in their trading accounts.