HODLing or Stacking? What’s your hack?
Occupying the crypto-space are thousands of ‘promising’ projects. With a very little attempt you’d get a handful of recommendations, the XRP army will always be there to push their ‘trillion dollar’ claim, lol. Well, with a billionaire CEO, you’d expect such. Brad Garlinghouse does a very good job with marketing, but so also do many other cryptocurrency projects. Marketing has become as important as the technology itself.
But that’s by the way, in a previous publication, I mentioned a couple reasons why an investor would choose to invest financially (and emotionally) in a cryptocurrency project. Technology, personal affiliation, pure financial interest…a couple of other reasons may drive your interest in a cryptocurrency project.
As an investor coming into a market as vast as the crypto space; deciding on what to invest on is prone to be an issue. Couple of ‘shinny’ projects with similar technologies and only little differences between them, it’s a dilemma! Investors consider a number of factors, but sentiments also come in. Sometimes we just like a project and invest in them just for the gains, other times it actually deeper than just business. Every cryptocurrency project is structured different from the other in at least one way, these disparities are the bedrock of our decisions.
After due considerations and investing in a project, the next hurdle follows. Short term investors and traders would surely take their profit once it comes. Rather than play with uncertainty, why not take the little you currently can? Most investors will do so, especially with the waves of unfortunate events in the crypto space. Long term investors would do something very different. Holding on to your investments for a very long period of time requires some level of courage and emotional stability…or indifference, as the case may be.
Holding on for Dear life?
Stashing your crypto investments in your wallet and leaving them untouched for a long time is a very common practice. Ok, you just invested in this project and you believe in it so much! Through the uptrends and price crashes, you keep hold of your investments. Sometimes this is due to a special regard for the project, other times an investor just develops some level of indifference.
Well; I’d say, anything that helps you deal with the emotion is great. Indifference or faith…cool. Cryptocurrency is known for its pronounced volatility. A fast-moving space. You could spend your whole day watching cryptocurrency price movements and not get bored for a second. Being Invested in such asset, emotions are bound to fluctuate. The joy of rising value and the pains of price crashes. A long-term investor is braced up of for this changing tides.
However, stashing cryptocurrencies in a wallet and leaving them untouched for a long time is becoming a relatively less popular practice. Earliest cryptocurrency investors are known with this practice more than contemporary investors. Every cryptocurrency investor is scared of being a bag holder of a dead project with no hope of at least returning their initial investment. Hence the struggle is to make profit but most importantly, not to run into grave financial losses. The latter is the main reason investors prefer to take current profit rather than wait and sell at the peak price, which unfortunately is uncertain.
Due to this lesser amount of investor would HODL, they’d rather take the second route…
For an audacious investor, volatility is a very handy resource. Locking up your crypto investments is a bit outdated. If there’s a way to grow them, why stash them? Well, one fact here is that stashing them is a safer practice. But to every risk is an attached reward.
Fluctuation of cryptocurrency prices is a common and normal event; this is in congruence with the market dynamics. Basically, nothing stays green forever, after some good gains comes some price corrections and pull backs. Hence, it is normal for crypto prices to jump between gains and losses at intervals.
Investors who prefer this move, trades their investments at a presumed peak price for a more stable cryptocurrency, to buy them back when the value goes lower. Each time this is successfully done, they grow in the number of tokens they hold. Sweet right? Sure, it comes with its risks but the rewards are equally mouthwatering.
The idea is to sell the peak and buy the dip. Regardless of what caused the dip in price, there always exists a chance for a recovery, especially in the crypto space…impossibility is just a word thrown around for no reason. No matter how bad a project dipped, it could turn its fortunes around if the right moves are made.
Stacking is great, HOLDLing is cool too. Anything that works is a solution, but we have different approach to the same issue. What’s your move? Stacking, I guess. Most times it’s a mixture of both. Let us hear your story!