Throughout the world of crypto there are many strategies which people will take with regards to what they are looking to gain. Most experts like Robert Testagrossa however, are keen on reinforcing the fact that most people should simply invest, and then hang on to what they have. This is mainly true when it comes to the coins which have the largest market capitalization that you can invest in on platforms like https://www.sofi.com/invest/, such as Bitcoin, Ethereum and Cardano. If you have heard phrases such as having diamond hands and ‘hodling’ then this is exactly what they are referring to.
But why is it that so many are keen for you to hold on to what you have at first investment? Here are some thoughts on exactly that.
There is no doubt that crypto is the most volatile financial market in the world, and there are a number of factors behind why this is the case. In the main however it comes down to the fact that there is still a lot of people who simply don’t trust this area of finance. Beyond this, we still have massive investors, often called whales, who are able to invest huge chunks and sell huge chunks, which greatly influences the price of certain currencies. If you try to buy and sell with the wind, most people will end up failing.
Long Term Plan
One of the main reasons why people suggest that you shouldn’t buy and sell is based on the long term outlook for cryptocurrencies. The large majority of people understand that crypto still hasn’t really blown up, at least not in the same way that it will do in the future. This is not a passing trend for most people, but the future of money. Given the outlook for most of the largest currencies, there really is no point looking to cash in on small gains, as the reality is that prices are likely to go through the roof.
Unless you are fully committed to investing your time in studying crypto markets every day, which very few people really wish to do, you will only add stress to your life if you try to stay on top of market trends. For this reason it is always better to simply invest your money at what you believe to be a solid price, and then ignore the changes in the market and just let the money ride.
The biggest issue with cryptocurrency investing is a fear of missing out. This means kicking yourself that you didn’t buy more when prices were low, or that you didn’t sell when prices were high. There is little point in putting yourself through this kind of turmoil when there is no reason behind it. If you do like the look of crypto then get in, set a stop-limit to avoid losing any investment, and then just let things ride.
These are the reasons why hanging on to your investment is what is often recommended.