What does hoarding coins mean? Why is it better to hoard coins than to speculate in coins? (Tutorial for Beginners)
We found that there is a word that appears in the mouths of investors in the currency circle, and that is hoarding coins. Many people outside the currency circle don’t know much about the word hoarding coins. So, what does hoarding coins mean? The editor below will give you a simple explanation of what hoarding coins means? Why is it better to hoard coins than to speculate in coins? I hope that through this article, everyone will have a deeper understanding of currency hoarding and currency speculation.
What does it mean to hoard coins?
Coin hoarding actually means holding coins for a long time. Coin hoarding is the belief of many people in the industry. Seeing the increase in the number of Bitcoins is the happiest thing for coin hoarders. However, if the behavior of hoarding currency is to be established, it is actually based on a default premise: that is, the price of Bitcoin will continue to rise significantly for a very long time in the future.
And this is exactly their judgment on the future price of Bitcoin! Although the current price of Bitcoin is less than 10,000 US dollars, the public has expectations that Bitcoin will sooner or later break through the high point of the previous bull market, which is more than 20,000 US dollars. Highly expected, I basically think this is 100% going to happen, it’s just a matter of time; at the same time, many people think that it is very promising for the price of Bitcoin to exceed 50,000 US dollars; it is not impossible to exceed 100,000 US dollars; 2 million yuan is my current price. The highest estimate of Bitcoin price I’ve ever heard.
Why is it better to hoard coins than to speculate in coins?
The additional cost of currency speculation
Regardless of whether you are a retail investor or a professional trader, investment is not guaranteed to make a profit. Even API program traders with relatively stable profits may lose hundreds of Bitcoins in a single liquidation.
The increasingly congested Bitcoin blockchain in recent years has made Bitcoin transfer fees higher and higher. As of November 16, 2017, the amount of unconfirmed transaction data reached 85,023,954 Bytes. The transfer fee, which once only cost 40 cents per transaction, has now reached nearly 100 yuan, which is only slightly advantageous when compared with cross-border bank transfers. Therefore, currently for BTC, every on-chain transfer has to "cut off" a piece of flesh.
The editor once thought that the legendary master trader only needs a few keystrokes to spend a lot of time and money on finding girls. The reality is cruel. In the quiet office at night, programmers are not the only ones working overtime. In addition to market dogs, there are probably traders. It is very common to watch the market at any time and late at night. If you don't make enough money to buy Chanel to coax your girlfriend, she will break up with you every minute.
Digital currencies are traded 24 hours a day. Staying up late can easily lead to dark circles under the eyes, mental anxiety and hair loss. In case of short-term losses, you will blame yourself and regret yourself. Don’t let digital currency investment kidnap your life and interfere with your normal work.
Don’t forget the 10,000-hour rule. Professional traders are also trained by paying tuition. The technical analysis indicators of the currency market follow those of the stock market.
So, if I know that I am no longer suitable for currency speculation, can I just invest casually if I am hoarding coins? No!
What does hoarding of coins test investors?
There are now thousands of digital currencies, the market is changing rapidly, and prices fluctuate hugely. Even long-term investment is high-risk and will be affected by various government policies, technological development, intervention of institutional giants, competition between currencies, etc.
In 2014, before the rise of altcoins, the editor asked a friend to learn about Bitcoin. The simplest explanation was - "Bitcoin is a stock." Indeed, at that time, there were only a few currencies such as Bitcoin and Litecoin, and the handful of altcoins could basically be ignored. And now...can you choose the right one?
Don't vote for anything you don't understand. The editor recommends that investors should fully understand its issuance mechanism, operating team, advantages and disadvantages, technical characteristics, etc. before investing in each new currency.
Co-founder Sun Zeyu has a famous saying in the currency circle: It is harder to keep money than to be a widow. When prices are rising, we must overcome the short-term temptation of money; when prices are falling, we must not be afraid of others' doubts and stick to our faith. Usually when people store their coins in exchanges, it is difficult to operate without reading the news. Storing coins in a hardware wallet not only ensures the security of digital assets, but also prevents hacking and keeps your own coins.
no pain no gain. If you are a moonlight tribe like the editor, then hoarding coins is probably just an idea on paper for you. The best thing to buy on Double Eleven and Black Friday is discounted Bitcoin. If you happen to have your first pot of gold, you might as well allocate a certain proportion of funds to invest in Bitcoin and store it in your wallet.
Benefits of hoarding coins
1. A mentality based on long-term investment prevents people from excessive pursuit of high prices and reduces the risk of being trapped.
2. In a few years, you will be able to use a considerable amount of wealth and use it to give yourself and your family a better life.
Finally, the editor reminds investors: Whether it is long-term or short-term, investing in digital currencies carries high risks. It is recommended that you make decisions cautiously and rationally based on your own investment capabilities and characteristics.
