Are you new to investing and buying cryptocurrency?
Have you heard about it but don't know what Hold coin is?
Encountered concepts such as: “hold to die”, “if you haven't sold it, you haven't lost yet”, “which coin should I hold”,….
In this article, Tra Dao Crypto (@Trà Đạo Crypto ) will explain what the term Hold coin is? At the same time, I introduce to you the top 3 highly effective methods of holding coins.
What is Hold coin?
Holding coin is buying and holding coins without selling them immediately, waiting for an opportunity to increase in price to sell for a profit. Depending on your investment strategy, the holding period for coins can last several months or several years.
“If you can't HOLD, you won't be rich.” i.e. “If you can't HOLD, you won't get rich”.
Changpeng Zhao (@CZ ) – founder of Binance
Holding coin is a form of long-term investment, different from short-term investment which is trading coin.
See more: 🔗 What is Hold coin, Trade coin? How to play coins suitable for newbies.
How to hold coins?
Previously, traditional coin holding (using a storage wallet) needed to create a wallet and password to restore the wallet. Then search for projects that have not been released on the exchange (potential IDO projects).
The purpose is to catch the first wave with the hope of bringing high profits, true to the saying "buy low, sell high".
Currently, holding coin derivatives makes holding coins easier.
Holding derivative coins (using an exchange) has the advantage of not needing to create a storage wallet, simple buying and selling operations, and the ability to choose trading strategies and leverage according to personal preferences.
Tra Dao Crypto has a series of instructions on investing in OKX coins, you can refer to:
🔗 Detailed instructions for registering an OKX exchange account using a computer.
🔗 Instructions for depositing money into OKX are detailed and easy to understand using a computer.
🔗 Detailed instructions for withdrawing money from OKX to the bank using a computer.
🔗 Instructions for buying Bitcoin and investing in Altcoins on OKX using a computer.
How should I hold coins for the most optimal profit?
How to choose coins to hold
You should choose projects that have been developed for many years and are highly secure such as Bitcoin, Ethereum, SOL, etc.
New, small-cap projects can be many times more profitable than BTC, ETH. But in return, the risks of these top coins will be much lower.
Suggestions when deciding to choose a project to hold coins:
Large capitalization and systematic development plan.
Community and activity level.
High practical applicability.
Investor and Backer behind the project.
Development team.
Competitive advantage of the project.
Technology potential.
How to choose when to buy coins
When you first join crypto, HOLD coin is the first step for you to get acquainted with the crypto market.
After choosing one or a group of coins to hold. The next thing to do is choose the right time to buy. The top coins on the market have a lot of news, it will not be difficult for you to observe and make your own predictions about coin price trends.
For example: Economic recession, the market fluctuates strongly, you start buying Bitcoin and hold it long-term until the market returns to a new equilibrium. So then profits will also be much higher.
The coin holding strategy is effective
Taking profits when you reach your target profit is the most basic and least effective coin holding strategy. Because if the value is close to that level but turns around, you will have to wait a little longer.
Long-term coin holding is the core strategy of holding coins and long-term holding should only be applied to projects that are truly worth believing in. Long-term holding has huge risks and low success, but if you choose the right project, the results are worth it.
Flexible coin holding: This strategy is considered optimal and achieves the highest efficiency. The secret is to always focus on coins to help maximize your assets.
For example: Starting purchase of 10 BTC at $1000. When the price of BTC reaches 3000$ you will sell all the BTC for 30000$, then use 30000$ to buy BTC at the price of 2500$. This process repeats so that your BTC number always increases over time.
How to allocate capital when holding coins
This is an important step in any form of coin investment. Putting all your eggs in one basket is very dangerous, instead divide your capital.
Based on your strategy, you can find a suitable way to allocate capital. Should be fully divided including Bitcoin or Ethereum, top coins and potential projects.
For example: After allocating capital, using the strategy of increasing the number of coins, your money will almost always increase gradually. It can also be said that without the coin price increasing, your assets have increased. In case the coin price decreases, the increase in your coin number can compensate for the decrease in coin price.
Top 3 highly effective methods of holding coins
Average purchase price (DCA)
DCA is a buying averaging strategy that puts you in a good position when holding coins.
Note that this is only the average price decrease, not the average price increase. Always leave 10% to 20% of Stablecoins in case the price plummets.
For example: You have 10000$ and the current price of ETH is 2500$. Instead of buying all 4 ETH, you apply the DCA strategy as follows:
Use 50% of the available amount of $5000 to buy 2 ETH.
If ETH drops to $1500, you continue to use the remaining 30% to buy 2 more ETH. The average purchase price will be $2000 instead of $2500.
If the price continues to drop, you can use the remaining 20% to buy more ETH.
Combination of Hold coin and Trade coin
Tra Dao Crypto has a detailed article on choosing the form of coin play right below.
Refer to the article 🔗 What is Hold coin, Trade coin? How to play coins suitable for newbies.
Taking profits is never wrong
Always observe and close the base when the coin price reaches a certain profit. Then HOLD the rest until the target profit is reached.
You should maintain a non-greedy mentality and always take profits when the coin price has reached the target profit. Helps you avoid panic and worry when the coin price drops far from your previous goal.
Risks when holding coins
Psychological risks
FOMO (fear of missing out) is considered the number 1 phobia for new crypto investors. When suffering from FOMO, you will often buy coins at bad price areas, making it difficult to bring high profits.
Therefore, it is necessary to carefully study the project, have a clear plan such as: coin holding time, profit target. To avoid making decisions based on emotions.
Price fluctuation risk
For people with weak psychology, not steadfast with the initial decision, especially for those new to the cryptocurrency market. When the market fluctuates up and down, it will create great fear and psychological pressure.
Therefore, in addition to psychological risk management, you need to follow the initial plan set out.
Project risks
When investing in low-quality projects such as dead projects, deleted from the exchange, scams, etc., it brings huge risks.
Equipping yourself with investment knowledge and updating daily news is extremely important.
Join the community and follow Crypto Tea Ceremony News Channel on Telegram to not miss any news.
Epilogue
Through this article, you have been explained what the concept of HOLD coin is and the issues surrounding holding coins. For those new to crypto, HOLD coin is definitely a good choice.
No need to spend a lot of time reading charts, no need for technical analysis. Simply realize the potential during certain times of the market.
What strategy have you used to maximize profits when holding coins? Leave a comment below or Join the Crypto Tea Ceremony community to discuss together.
Don't miss out on basic to advanced crypto knowledge. By saving the DETAILED CRYPTO INVESTMENT MANUAL compiled by the Tea Ceremony Crypto team (@Trà Đạo Crypto ).
