Aug 06 (newsonjapan.com) - Over the history of finance and economics, digital assets are the only ones that have gained by a significant margin.
At one point in the early years of Bitcoin, it was valued at $0.008, but today, it is worth $37,986. Through all this time, investors have learned a lot about cryptocurrency including the buy and hold strategy, which is commonly known as holding by the crypto community.
So, what is buy and hold? The buy and hold strategy in the crypto sector works like that of any other security and stock. Hence, it is a passive method where you buy and hold Bitcoins, altcoins, and stablecoins, and then keep them in a safe digital wallet for a long time without caring about the short-term fluctuation of price value. So, the ‘hodler’ is not making plans to sell the digital assets anytime soon.
Reasons for Buy and Hold Strategy
· Long-term value appreciation – One of the major reasons to ‘hodl’ or buy and hold cryptocurrency is to get the highest amount of profit from the long-term value appreciation. From looking at the previous history, you will notice that all cryptos have consistently appreciated, which easily tells that the future is bright as well. If you have not practiced the buy and hold strategy, the right time is now.
How to Buy and Hold
The first and most crucial step is to choose a reputable ‘hodling’ platform. As mentioned, YouHodler is a perfect choice for both beginners and experienced investors. It is an elaborate platform that is safe and transparent in its dealings.
Together with other platforms, they require you to open an account to start the buy and hold strategy. Once it is ready, deposit your crypto, which will start earning the said interest immediately. They have regular payouts in either cryptocurrency or fiat currency. So, when you buy and hold or trade with these platforms, the benefits are both short and long-term.
Risks of the Buy and Hold Strategy
Buy and hold investing is just as risky as any other venture. The cryptocurrency sector is very volatile and no one is certain of the digital coin value in the future. You could also be unlucky enough to choose crypto that is not growing in price value at all.
There is also the risk of losing your investment when the ‘hodling’ platform is infiltrated by hackers, or it was a scam all from the beginning. If you are not keen to practice caution when buying and holding, you could lose digital assets worth a lot of money.
Conclusion
The buy and hold strategy is a great opportunity to earn a lot of profit in the long run. Buying cryptocurrency, an important role is played by the bitcoin price and other coins. So, if you have some money that you are not planning to use anytime soon, try this investment opportunity and you will not regret it, especially when you use a reliable platform.
