How to Get the Most of Your Bitcoin Investments
After the collapse of Bitcoin in 2013, HODLing has remained a popular method for storage. So not only is this an exciting new development, but it is something that works. As the old saying goes: if it works, it isn’t broken!
HODLing Bitcoin and watching it grow is exciting. But you’re getting tired of seeing gains only in USD. When you started buying Bitcoins, you expected it to be worth more in the future, and now you’re wondering if you should sell some for fiat currency.
You know that as the price keeps increasing, your HODLing will probably be worth even more in the future. So, should you sell? Well, that all depends on your options. But knowing a few things will surely help you make the right choice. So, first, start with the basics.
What’s The Takeaway?
HODLing refers to the act of keeping your money in a savings account if you do not plan to spend it immediately. HODLing Bitcoin can be viewed as a form of passive income or even a form of tax-deferred savings.
Growing Bitcoin with HODLing Strategy
HODLing allows you to ignore short-term market emotions because it uses an offsetting strategy. It’s like “going long,” but very different. HODLing Bitcoin helps you beat the market by finding the best coins to invest in and holding them for long periods for maximum growth.
With a tactical HODLing strategy, you can outperform the market. Even in bear markets, when everyone is panicking, you’ll be able to take advantage and grow the value of your portfolio.
Trading vs. HODLing BITCOIN
The volatility of Bitcoin makes it attractive since if you HODL on until the price surges, then the gains you can make are worth it. However, because of the cryptocurrency’s volatility, it also means that there will be days when the price goes lower than you expect. Therefore, it would make it hard for traders to determine when to sell. And hence the question eventually comes down to this: is it better trading or just HODLing? It all boils down to your personality, outlook on bitcoin, and your current financial situation.
Tips to Making Most Out of Your Bitcoin Investment through HODLing
Learn the Basics
Buying bitcoin or another cryptocurrency, or helping someone buy it, requires more than just a little bit of technical know-how. It would help if you understood the dynamics of cryptocurrency and how the exchanges work to make an informed decision.
Take Small Steps
There are two paths of bitcoin investment: 1. Going out and buying lots of bitcoin at once. 2. Buying some and holding on to it. Both of these are risky and have their costs. You can make money more or less by choosing a path that suits your risk tolerance.
Diversification is a way of investing in a broad range of assets that will generate consistent cash flows and provide more excellent financial protection than a single source investment.
Bitcoin Investments: Wrapping Up
It’s essential to understand how to protect your money, just as it is for every other financial investment. You must defend your digital properties from fraudsters and cyber-attacks in this situation.