Things that you need to know as a crypto-holder!

Things that you need to know as a crypto-holder!

By Laurenceuuu | Mind++ | 11 Jun 2021


They said that holding your crypto is the “safest risk” in crypto-verse because you only have one thing to do—invest or buy an asset and hold it for long term or maybe short term…

…but as what I have said on the term in the introduction, it is still risky and considered as the safest risk. Why? It is because there are things that you need to know as a crypto holder. What are the possible risks? What are the things that you need to know?

In the end of this article, you will know the following:

  • What is HODL?

  • Why holding is the safest risk?

  • Things that you need to know as a crypto holder.

We always heard the term HODL but maybe you are thinking that it a misspelled term of HOLD? Oh well it is correct, but this word has a funny but historical story.

WHAT IS HODL?

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In the year 2013, GameKyuubi, a drunk, semi-coherent typo-laden rant about how noob he is when it comes to trading, so he posted in bitcointalk forum, “I AM HODLING”.

Read more: Definition of HODL

According to Investopedia, it is a term derived a from a misspelling of “hold” that refers to buy-and-hold strategies in the context of Bitcoin and other cryptocurrencies.

To make this definition shorter, it is like buying a promising asset and hold it for a long term. Random people said that holding a crypto asset is better than trading because when you sell earlier, you may lose an opportunity if the price surge more up to the “moon”.

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WHY HODL IS THE SAFEST RISK?

We consider it as the safest because when you hold it for long term, it is possible to surge up the price more than you expected and take the opportunity to gain more profit than day traders.

On the other hand, the possible risks are if you chose the coin that is worst for long term investment—in short, meme and shitcoins, it is possible that you will lose something bigger.

There are also coins that surged up the price on its release or launch but after few months or years, it did not move again because there are no investors anymore.

THINGS THAT YOU NEED TO KNOW AS A CRYPTO HOLDER

In holding your assets, there are different things to consider, and you must be mindful on what you click and share to other people. One of the things that you need to know is don’t share your seed phrase.

Seed phrase is commonly 12 words and each wallet have a unique seed for them to access their wallet. It is like your password that you don’t want to share because once the person have your seeds, they can access your wallet and possible to take your money without your permission.

Hence, be mindful on who you trust and where you put your seed phrase. Additionally, if you are a crypto holder and you are holding your assets on a non-custodial wallet, much better if you will write your seed phrases in your notebook or any medium for the safety of your assets.

If possible, do not save it on your email, messages, or even on your phone because these things are prone to hacking and put your assets in threat and lose it in one snap.

Hold it with interest!

Since you are just holding your asset, you may consider holding it while you are earning interest. In this way, you will have more gains because if the price increases, the USD value of your asset will also increase PLUS (+) the interest that you will earn by holding it.

On the contrary, holding them with an interest is quite risky. Why? It is because most of the platform who offered an interest are centralized, meaning, they don’t have a seed phrase and you are not the one who hold your asset.

Remember this statement, “NOT YOUR KEYS, NOT YOUR COINS”.

There are different platforms where you can lend or store your asset to earn an interest such as Nexo and Celsius…but you can do more research between these two platforms, HODL at your own risk!

Conclusion

In the end of the day, you are still the one that will decide if you will hold your asset or choose day trading. In my opinion, holding asset is better than trading. Also, I will not choose the risk of having interest in holding my whole asset on centralized exchanges. I will probably put some of my asset to lending platform for the sake of interest but not all in.

If you are using different wallet and exchanger in holding your asset, you will love to monitor it in one screen and the CoinGecko will solve your problem! Collect candies by using it and click this to know more!

Published: June 11, 2021

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Laurenceuuu
Laurenceuuu

I'm still on a process of learning when it comes to crypto. Trust the process! We 💚 BCH


Mind++
Mind++

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