Is it possible to consider cryptocurrency as a long-term investment?

Is it possible to consider cryptocurrency as a long-term investment?

Cryptocurrency
April 11, 2022 by Diana Ambolis
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With the present amount of volatility in the cryptocurrency market, understanding the many techniques for investing in this market has never been more critical. There are traders, on the one hand, and investors, on the other. Many people incorrectly feel that their objectives are the same. This is not the case. Investors utilize the buy-and-hold
Why are Millennials investing in Crypto?

With the present amount of volatility in the cryptocurrency market, understanding the many techniques for investing in this market has never been more critical. There are traders, on the one hand, and investors, on the other. Many people incorrectly feel that their objectives are the same. This is not the case. Investors utilize the buy-and-hold method, whereas traders store assets until they achieve short-term success. Investors put their money into the market for years, decades, or even longer.

In the Bitcoin (BTC) market, “HODL” has become a catchphrase! The HODL concept, which stands for “hold on for dear life,” is followed by most BTC maximalists. A hodler (i.e., an investor) is unconcerned with short-term price volatility, whereas traders have predetermined risk levels. If you’re losing money, the best advice for a trader is to exit the trade at your predetermined stop-loss range, while the best advice for an investor is to buy every dip and HODL.

Choosing the Best Cryptocurrencies to Invest in for the Long Run

The last thing you want to do is go into it blind when it comes to money. Work hard, complete your assignments, and learn everything about the industry, coins, projects, and technology. Please don’t believe everything you read on social media; we’ve heard stories of people who made a lot of money with cryptocurrency.

Don’t squander your cash on something you don’t understand. Take some time to learn about the project’s main mechanics and the type of investor you are. This will be critical in choosing which investments will be most advantageous for you.

The bitcoin market’s volatility has been widely noted in recent months. Before you go in, one of the most important things you should do is figure out what you want to achieve with digital asset investments that meet your risk appetite. It might be tough to pick the right digital asset to invest in. The project’s dependability must be taken into account. When it comes to digital assets, it’s crucial to assess how much trust the community of a coin has in the project. Two further aspects that contribute to a project’s USP are supply conditions and raison d’être.

Also, read – How the Crypto Exchange Business is More Accessible With HollaEx

Allocation

Because Bitcoin and ETH, the Ethereum blockchain’s native currency, account for 60% of the cryptocurrency market, these two assets will be critical to your portfolio. If you have a lot of cryptocurrencies, these two will make sure your portfolio is in line with the market.
How much of your money you invest in cryptocurrency will depend on how much risk you are willing to take. The rest of the portfolio could be divided into individual investments, focusing on initiatives you are enthusiastic about. This is when the idea of “figuring out what kind of investor you are” comes back into play.

The term “high-octane” is abbreviated as “HODL.”

There is no such thing as an ideal portfolio. Regardless of how skillfully the assets were chosen, a broad portfolio managed by a concerned investor is doomed to fail. In 2021, bitcoin investors gained 47.35 percent, whereas ETH investors gained roughly 300 percent. Patience is the essential skill for the HODL strategy, which does not involve chart reading or market research. The need for high-quality investments will only increase in the future. While most traders attempt to time the market, an investor’s best bet is the time! The longer the hodling period, the higher the earnings.

The market has oscillations that come and go. Because crypto-assets are so volatile, the only way to profit from them in the past was to hold on to what you already had.

Cryptocurrency can be a tool for your long term portfolio