Why HODLing Crypto Could Be Your Best Financial Move
If you decide to get involved in crypto, you can do different things. Seeing the innovation and development, more people make their move to invest in the crypto industry. In this post, we are going to talk about why hodling crypto could be your best financial move.
When you decide to invest in any asset, you usually think about the long term. If you invest in crypto and hold it for a long period of time, you can get a higher return. There is a high chance you can capture the market's overall growth and not miss out on the higher return.
When you make investments, you do not go all in investing in a single asset. That's the worst thing you can do if you do not diversify your portfolio because you have high-risk exposure. In case anything happens, you lose big time. Investors always want to reduce risk.
You can invest in stocks, real estate, gold, and crypto. Investing a certain portion of your portfolio in crypto will reduce the risk and at the time, you have a chance to get a higher return. Investors choose to invest in crypto and hodl it that is better for the overall portfolio.
We use fiat currency in our daily life. The truth is that you are losing daily holding of fiat currency due to inflation. Investors like to focus on something that can be used as a hedge against inflation. You can use crypto to do that. There can be arguments about whether it is good to hold crypto as a hedge against inflation.
If you ignore the short-term market fluctuations and view the market in a long term, you can notice the impressive growth of the crypto industry. You can decide what to hold for hedging against inflation. For example, Bitcoin supply is limited. You will not have more than 21 million Bitcoin. On the flip side, you will not find any supply limit of fiat currency that decreases its powering power gradually.
Do you like what blockchain stands for? You can support crypto and blockchain technology by holding crypto. You support decentralization, privacy, freedom, and security. You look at the bigger picture and want to be part of this revolution. You can decide to hodl crypto from this perspective.
You can trade crypto at any time. The more you buy and sell cryptocurrency, the more you pay transactions and trading fees. When you hold crypto for the long term, you save money on trading and transaction fees. That's an advantage you cannot overlook.
When you hodl crypto, it does not mean you do not take any risk. The fact is, you have to do your research and analysis properly before making any investment decision in crypto. What you are holding, that's important. If you hold worthless crypto, you end up getting rekt.
I am sharing my opinion here. This is not legal or financial advice. I will not be responsible for your action, so decide what is good for you.
So what do you think? Please feel free to leave your comments. Thank you for reading this post. That's it for now. I'll be back with another post.
If longterm is the goal then HODL is a wise move. Cryptos are now in demand and many people are being knowledgeable about it.