More than anything, I want to earn steadily in the crypto-currency markets, because the profit potential here is simply huge. That's just about stability for me has only dreamed of"
This opinion will be shared by many investors who invest their money in cryptocurrency assets.
But that does not allow the traders to consistently make money on the stock market? Here we are talking about such factors:
The inability to accurately predict the further development of the market situation, as well as its high level of volatility. These two factors are rarely considered by novice crypto traders, but they often become the last nail whipped into the coffin of their hopes for profit. These factors make the already risky trading even more dangerous and unpredictable.
In the crypto-currency market, there are alternative ways of earning, for example, investing in ICO or crypto-currency mining. And do not forget about arbitration. On the one hand, the availability of alternative methods should provide market participants with great opportunities for earnings, but they are not suitable for everyone. These methods will require the maximum involvement of the person in the process and very large investments, but not the fact that these investments will be repulsed even in the long term.
Many cryptocurrency traders who have recently come to the market, often make one very important mistake - they are constantly sitting at the screen and monitor the quotes.
You may notice - but this is what all traders do, both beginners and more experienced.
In fact, experienced traders use the popular Hold strategy. As the name implies, this strategy involves keeping the trader of their assets until such time as there is a General trend of growth of the crypto market, as well as the trend of growth of quotations in the long term.
In simple words, the next strategy “Hold” crypto investor acquires assets, and then keeps them for several years, not paying attention to what is happening in the market at a particular time.
And while short-term traders every minute tear the hair on his head, giving the last nerve cells of the trading process, adhering to the strategy of “hold” investor remains calm.
But whether the strategy is “hold'em” will provide the trader a considerable advantage?
Yes, it is true. After all, in the crypto-currency market, the prices of most crypto-assets are incredibly volatile, and the crypto-currency, which today costs only $ 5 per coin, can grow to $ 5,000 after 3 years, as it was with bitcoin.
After all, if we go back to 2009, we will be able to buy Bitcoin at, to put it mildly, a modest price. And here we hold them until 2017, selling at $ 19,000 for one Bitcoin. You can calculate how much profit we will get from it.
Of course, this situation looks just perfect, and not always long-term investment can bring such solid dividends to crypto investors. However, as practice shows, the strategy of “hold” really works. The problem is different - not every trader is able to follow it, because in this case he will have to wait for years until he finally gets his profit.
The greatest dividends from the use of the Hold strategy are received by those crypto traders who are able to predict the nearest increase in the value of the crypto currency by buying it at the lower price point.
And here you can once again argue: But few could have predicted that Bitcoin is waiting for such a huge growth. It might as well have fallen in value, causing serious losses to investors.