HODLing Bitcoin – Is It The Best Way To Make Money With Cryptos?
HODling, or when spelt correctly, HOLDing, cryptocurrency, is a popular way to invest in, and make money from cryptocurrencies. However, it is a long-term investment as opposed to short-term and day trading, which is buying and selling rapidly to get quick returns on your investments.
Crypto investing works the same way as any other type of investing. If you’re buying stocks and shares for example, you buy when the price is right, wait for value to increase and then sell for a profit. In terms of crypto trading, it’s a passive and relatively safe way to make money. However, it’s also slow so if you want a bit more excitement, HODLing cryptos is probably not the best choice!
As is the case with the property and stock markets, some cryptocurrencies are more suited for HODLing than others. If you do want to go down this path, some of the things to look for in potential cryptos for investment include:
- a sound management team behind it,
- a good business plan,
- plenty of backing for its development,
- a publicly available white paper,
- plenty of promotion,
- growing social media presence,
Whilst they’re no guarantee of success, they are nevertheless an indication that the crypto is probably going to be around for a while. That gives you a chance to invest, and if it’s a relatively new crypto, get in on the ground floor.
One of the other advantages in HODLing, or long-term investments, is that you don’t need to pay quite so much attention to ie worry about, the volatility of the daily cryptocurrency market. It’s notorious for producing some pretty big rises and falls, which can be scary for the unwary! With long-term investing, you’re looking for cryptos that are on an overall upward trend. They may go up and down in the short term but on the whole, they should be steadily improving in value.
Some investors do thrive on the excitement of daily trading and following short-term trading action but you really need to know what you’re doing or you could stand to lose a lot of money. If you’re someone who sits in the middle of these extremes and want the best of both worlds – excitement plus relative security, then perhaps something like the Chef Gordon Ramsay bitcoin revolution platform may suit. Essentially, this and other similar platforms provide traders with access to smart trading software. These programs ‘learn’ the market, and can make instantaneous and optimal trading decisions based on statistical calculations and probabilities that it would take humans some time to figure out. In layperson terms, they take the guesswork out of short-term trading!