The great popularity that cryptocurrencies have acquired has made it possible to diversify investment strategies based on fundamental and technical analysis adapted to users’ tastes.
Previously, financial concepts were strange and sometimes unintelligible, as cryptocurrencies have gained ground in the financial market, and therefore more people have joined this investment trend. You can further explore the site Big Money Rush to learn more.
What does HODL consist of?
Unlike cryptocurrency trading, in which operations of up to 1 minute of reference are carried out, the Hodl, which represents the term “wait” in English, only that it is misspelled, describes the long-term financial investment strategy with cryptocurrencies.
This strategy is based on the acquisition of cryptocurrencies, where they are left in the long term waiting for an increase in value that generates the profits estimated by the investor. There, the crypto asset is sold.
Although predicting the value of a digital currency at a particular time requires arduous analysis, it is one of the most profitable strategies in terms of cryptocurrencies.
The volatility of these digital assets is extremely high, making many investors increase their fear of risk, which is why it is assumed that cryptocurrencies always increase their value in the long term.
Cryptographic history shows that cryptocurrencies, like many of the actions in the traditional market, have cyclical behavior. Therefore, what makes from time to time assume a repetitive trend in terms of the rises and falls of its value?
Background of the Hodl
It originated from a comment made by a cryptocurrency user where he assured that he would not change his position regarding investment in cryptocurrencies; where he misused the term HOLD and therefore went viral on social networks.
Let us remember that cryptocurrencies are mobilized in the market due to the impact generated by the comments of their users about them.
Digital currencies to make Hodl
Cryptocurrencies are used in the digital finance market and are used more frequently to make online payments. Therefore, it is quite attractive for many, not knowing that this strengthens the digital currency market.
The globalization of cryptocurrencies allows them to be used from anywhere on the globe, but since any entity does not regulate them, additional expenses, such as commissions for the transactions carried out, are not generated.
No matter where you are located, cryptocurrencies will be worth the same in any location; they are not controlled or manipulated by third parties.
Anyone can use, buy and sell cryptocurrencies; you only need the capital to do so, and there are no requirements to trade with them.
The most reliable cryptocurrencies to trade are those listed below, there are thousands of cryptocurrencies, but not all have the same market capitalization and user support.
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Bitcoin
It is considered the leading and most popular digital currency among users of crypto assets.
Although it has been the one that has received the most criticism, this makes it stronger; nobody believed in it at first, but now many want to invest in it.
Its origin dates back to 2009, and its creator is still unknown; we only know the pseudonym under which it became known, and it is this Satoshi Nakamoto,
Its market capitalization is the highest, reaching a peak value of almost 60,000 dollars.
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Bitcoin cash
After the search to increase the number of coins issued, Bitcoin cash arose; it is well-known and supported by Bitcoin.
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Ether
It emerged in 2005 as a digital currency to compete with Bitcoin, it bases its operations on Smart Contracts, just as Bitcoin operates with Blockchain, and its most attractive point is that it has no digital currency issuance limit.
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Ripple XRP
It is a computer platform anchored to the Blockchain-based primarily on P2P technology and is the cryptographic representation of the company Ripple Labs.
It allows its users to create their cryptocurrencies through the open-source protocol that it offers.
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Litecoin
A cryptocurrency on the rise, like Ripple, works under P2P technology, allowing money generation through executed transactions.
Its action time is speedy no matter where the user is.
Conclusion
The HODL is assumed to be the best strategy because of how the value of Bitcoin is discussed above; it always suffers ups and downs, but in the end, its value will always be higher than at the beginning of the year, and this is a trend.