BUY & HOLD
CRYPTOCURRENCY
WHY BUY & HOLD?
Holding bitcoins is also an investment in the network and technology behind Bitcoin. Since Bitcoin is a limited commodity, the price will rise as the demand increases. As a result, the price of bitcoins would be expected to rise relative to dollars, and everyone holding bitcoins would see their investment gain in value.
Whatever the asset class is, holding the asset down until value appreciation occurs is a very effective strategy. From real estate to shares and other exotic assets and instruments, holding out for the long term allows the investor to escape the market noise and distortions of the short-term market trends and moves.
Bitcoin was about $0.06 for more than 3 years from the implementation of the blockchain until it took off around 2012.This then goes to show that maximum exponential gains can be made by simply just walking away from digital assets until the asset prices take off.
So while the superstar traders may still want to wow people with their prowess and through profits made from the highly technical analysis and complicated methods of market assessment, the best strategy was and remains to HOLD.
WALLETS
A Bitcoin wallet closely resembles your bank account. It lets you send, receive and store bitcoins. There are several types of wallets out there to choose from, and they vary in features and devices on which they are used. It is advisable to know these categories so that you always choose one that suits you.
All wallets are classified as either hot or cold. One that is connected to the internet or is online is said to be ‘hot’. On the other hand, ‘cold’ implies it is offline or disconnected from the internet.
‘Cold’ is considered the most secure, thus, recommended for storing large amounts of bitcoins. ‘Hot’ is suitable for frequently accessed funds. Therefore, the best strategy is to use cold storage for long term holdings and a hot wallet for regular use
WEB & MOBILE WALLET
These are HOT WALLETS provided on the cloud by third party wallet service companies. The wallets on these platforms are only accessible through an internet connection.
We use phones for most tasks these days and bitcoin wallets tailored for your Smartphone is therefore very convenient.
PAPER WALLET & COLD STORAGE
If you thought bitcoins were digital only, then think again. Paper wallets and USB can securely hold your bitcoins in COLD STORAGE form for a long time without being connected to the internet.
HARDWARE WALLET
COLD WALLETS which act as portable physical vaults. They are incredibly small devices. They are secure for storage, sending and receiving transactions online. Their developers make use of top grade cryptography and take them take through continual scrutiny.