# Why I think it’s better to invest your cryptocurrency

in steem •  4 months ago

in this article I will reflect on the difference between being a coin HODLER and joining a legit investment service, and delegate your STEEM.

The hodler, deposits a certain number of coins in his wallet and waits (hodl), or rather hopes, that the price of the currency on which he has invested grows in order to benefit from the relative capital gain.

Unfortunately, it is also possible that the price of the currency on which he or she has invested decreases and in that case a loss would occur.

Let’s take an example with finite numbers, and simple percentages: we will call “John” the hdler for convenience and consider only the case where the price after one year doubles or halves.

Today John deposits on his wallet 1000 coins that he bought at the market price of 1 euro each.

—>total invested 1000 coin = 1000 euro

1.After one year the value of 1 coin is 2 euros (doubled)

—> 1000 x 2 =2000 euro (John has earned 1000 euros)

2.After one year the value of 1 coin is 0.5 euros (halved)

—> 1000 × 0.5 = 500 euro ( John has lost 500 euros)

As can be seen from the above example John’s investment increases or decreases in a way directly proportional to the difference in value that “coin” undergoes.

Now let’s see what happens after a year if the same investment was allocated to a legit investment service with coin delegation, considering that the structure guarantees 48% annual dividend to those who join.

—> total invested 1000 coin = 1000 euro

After 1 year

1000 + 48% = 1480 coin

The value of 1 coin is 2 euros (doubled)

—>1480 × 2 = 2960 euro (John has earned 1960euro)

After one year the value of 1 coin is 0.5 euros (halved)

—>1480 × 0,5 euro = 740 euro (John has lost 260 euro)

As can be understood from this simple example, John, with the same investment in the second case has gained much more than the first case when “coin” has doubled and lost much less when “coin” has halved its value.

This means that joining a legit investment service with coin delegation is a smarter way to hodl, because this system guarantees to increase the profits by 48% more than a normal hodler who invests in steem, and guarantees to amortize by 48% his losses compared to the usual hodler who invests on steem on an annual basis.

If we wanted to make the same investment for several years, the advantage would obviously increase, but I leave this simple multiplication to you.