Ok, I get it. As of this writing, cryptocurrencies’ values are dropping and the bears are still dominating the market. While the weak hands or those who don’t have much faith in cryptocurrencies are getting out of the market, many smart investors are taking this opportunity to bag buy more coins.
There are several ways to earn money with cryptocurrency and one of these is trading. Traders are those who have enough time to study technical analysis, perhaps make their own analysis and buy and sell coins based on charting fundamentals. Other traders simply follow signals from other known traders. Yes, there is money in trading but if you’re not careful, you might also lose a lot of money.
Those who have strong faith in crypto but don’t want to stress themselves with the ins and outs of trading simply buy cryptocurrency and hold these for a long period time. On August 23, 2018 Bitcoin advocate Charlie Shrem spoke to Yahoo Finance and said that investors should just id that new crypto investors should not be shocked by the volatility of the crypto market. He added that it’s selecting a token near the top end of the market and adopting a long term investment position is the smart thing to do. Shrem also advised investors to buy crypto and aim to hold for five years. He said that the bull and bear markets usually occur in two-year cycles so five years just makes sense.
But just like other investments, putting your money in cryptocurrency can also be very risky. The worst thing that can happen is that you could lose your money. The rule of the thumb is “never invest more than you can afford to lose”. Cryptocurrency is still in its infancy stage and that your investment might not work out as planned added to the fact that this market is really volatile. This disadvantage however is often overshadowed by all other great things cryptocurrency promises for the future. Perhaps, Charlise Shrem is right. It’s easier when volatility is ignored, trusting that the blockchain technology will eventually become the money of the future.
So is it profitable to hold cryptocurrencies? The answer is yes but in order to succeed, it’s important to do your homework. Do not just listen to anyone and but whatever coins they’re buying. Learn about the new trends in blockchain technology. Your decision on what coins to buy will definitely affect your future. If you’re planning to hold long term, it’s best to start buying security tokens like Orbis coins while the prices are cheap or while it’s in STO (Security Token Offering) stage. Security tokens’ real use case is that they represent a real share of the company and it is the equivalent of issuing company stock on the blockchain making them very profitable for long term investors.
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