#HODLTradingStrategy

Why to"HODL” Cryptocurrencies??💰💰

Cryptocurrency is a type of digital currency supported by blockchain technology. It functions as a medium of exchange and can also be held as an asset or investment. Examples of cryptocurrencies include Bitcoin, Ethereum, Ripple, etc. Decentralization is the major feature and advantage of cryptocurrency, as it is not issued by a central authority such as a country’s central bank.

Cryptocurrencies continue to gain more attention as an investment opportunity due to the remarkable breakouts in 2017 and 2020. The trend of financial decentralization and currency digitalization provides room for growth to cryptocurrencies. Under the post-COVID low-interest context with inflation expectation, investors also hold cryptocurrencies for value reserve.

“Hodling” refers to the buy-and-hold strategy. Buy-and-hold investors tend to hold their assets for an extended period of time to profit from the long-term value appreciation. In contrast, traders are much more active in transactions and seek returns by buying at low prices and selling at high prices.

Due to their highly volatile nature, cryptocurrencies provide great opportunities for traders to build up long and short positions frequently. However, “hodling” can provide more safety to investors, as investors are not exposed to short-term volatility and can avoid the risk of buying high but selling low