What option is good – Buy and Sell Cryptocurrency or hold it for the long time?
Cryptocurrency is in news these days and everybody wants to know how can I earn using this option. It is always tough to do valuation of any Cryptocurrency as it fluctuate a lot. So the big question is whether I should buy an Cryptocurrency like Bitcoin and hold it for big gain or just do trading for short term gains?
Whether you buy and hold it or sell it there is always a risk associated with any Cryptocurrencies. The inherent value in any Cryptocurrency is always based on faith and fear. Faith can build in one day can can be lost in one day because of any big regulation or news. Support after 5 years all governments ban the use of Bitcoin or any Altcoins then all your investment will go to dustbin as legally you can not use it. So as long as people has believe and no government is banning it then your price is expected to rise overtime as the coin supply become less and less and it approaches maximum possible mining. Once you reach that level or once it reached to your expected level then you can sell it for big cash.
As Cryptocurrency market is very volatile and the price fluctuate a lot on daily and weekly basis which are also totally depend on faith and fear. You can take advantage or these temporary loss and gain by doing trading. Trading will also preserve your currency as ultimately your aim is “Buy low and sell high”. Trading will take some of your valuable time as you need to keep your eye on current market price of Cryptocurrencies. If time is more important for you then don’t follow this route but if you have some free time then you can read my blog article on trading cryptocurrencies for more information on this topic.