When To Save Your Cryptocurrency?
In an industry recognized for the volatility of its assets, knowing when to hold on to your funds is an essential skill. Also referred to as hodling, it is one of two strategies generally utilized by investors in the crypto space, the other is trading.
Hodling entails purchasing digital assets such as bitcoin and saving them in a crypto wallet for an extended period, avoiding selling as much as possible usually regardless of market movements. Done right, hodling can be incredibly profitable in the long run. It is also an excellent choice of strategy for both novices and experienced investors in the crypto industry.
Several factors can affect your decision to save your cryptocurrency, from the coin you intend to hodl, to your reasons for hodling and the general market or industry mood. In the guide below we will be taking a close look at some of them.
A good time to hodl your crypto is when you have a low-value coin that may have fallen in price in recent times. Its current worth may be so low that selling isn’t a viable option, however, what you can do is wait for its value to rise after which you can convert it to a stablecoin like USDT which you can store on a platform with high-interest rates.
Choosing the right platform to store your assets is just as monumental a decision as saving those funds. The right platform can provide you with access to a range of services that can help you grow your savings nearly effortlessly. A prime example of this is Bitcoinztech, a crypto savings platform where users can store their assets and make passive income through their high-interest rates.
Exchanges have a significant place in your decision to hold on to digital assets. Certain assets only have value because they are listed on major platforms such as Binance. The downside to this is that being dropped by a large platform could cause the price of the token to take a nosedive. If the coin is dropped, it might be your cue to let go.
It is also important to keep an eye out for news on your chosen asset. If there are little to no pertinent developments, hodling would be unwise. Digital assets rely on an extensive user base and positive promotion for their values to increase.
If the price of a token exhibits bullish behavior, that is if it remains in a consistent upsurge, holding on to your savings is a good way to go. Ensure that the bullish trend is not a short-term session or a one-off. It should have lasted over a prolonged interval, preferably months or even years so a profit is relatively guaranteed.