To trade or HODL BAT?

To trade or HODL BAT?

By MadMaxx | Psycho Crypto | 23 Jan 2020


With cryptocurrencies, you have two options when you obtain them.

You can choose to hold on to them and hope they appreciate in value, or you can trade them everyday, making or losing money off price swings.

Usually, option 1 doesn't require much education, and anyone can do it.

Someone could buy about 3 BTC today, and hold it till the halving. Then they can sell it at a higher price and profit large amounts.

Holding, or hodling as it's popularly known as in the crypto world, is a big reward way of owning crypto. The rewards are massive if everything goes right, especially if the hodler bought a lot of the cryptocurrency.

I know a guy that bought about 8BTC in 2013, and he's holding off till the halvening to finally sell them. Yes, he has held them for 7 years, and if his calculations go right, he'd have made 30000% on his investment. See? Easy money.

Trading on the other hand is where things get interesting. You could be making a hodlers 8 year money every day if you know what you're doing. Trading is fast paced, and has the potential to make you, as well as lose you, a lot of money.

Trading is better suited for those who don't have $20000 to start investing, and for those who have a lot of spare time.

So, with that brief background, should you trade or hodl BAT?

I believe you should trade it. Here's why.

BAT moves like crazy everyday. Holding large amounts of BAT for a long time is not a very smart decision, as BAT has no deflationary model, and doesn't really have anything special that makes it a worthy godling option. It doesn't compound its own interest like Tezos, and there's no halving that improves its value. You could hodl your BAT for a year or so, but to hodl BAT for about 7 years like that friend of mine won't really amount to much, unless you have a lot of faith in the system.

That's my two cents though. What do you think?

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MadMaxx
MadMaxx

In the eternal quest for crypto fulfilment. I'm an obese frog on the internet, what I say most definitely isn't financial advice.


Psycho Crypto
Psycho Crypto

Fun experiments with crypto!

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