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Long-term investment in crypto assets is very simple and the most profitable option that has ever existed in the crypto industry since the f...
Cryptocurrencies are a virtual form of money as all we know it. Their issuance and operating rules do not depend on any central bank or other financial institutions; instead, they’re managed by advanced algorithms. Just recently, it was announced that Elon Musk and his company, Tesla Motors have purchased $1.5 billion in Bitcoin, which is one of the biggest investments in cryptocurrency in history. Up to now, he still holds firmly his investment position.
To provide the necessary confidence to the investors, a minimum of one year and ideally a three- or five-year lock period is recommended.
Holding cryptocurrency long-term is less risky as compared to trading. It is essential to admit that holding digital asset, whether it is Bitcoin, Ripple, Monero, or GIFA Token for a long-term crypto portfolio requires no hiccup since it doesn't require investors' physical involvement. Plus, there is no central authority over your investment. You are the only one who can control it. And most of all you are not incurring any fees.
Buying and selling crypto isn’t the only way to make money in the industry. If you want to gain some great exposure to the crypto industry starts now expanding your holdings beyond Bitcoin, the best way to do so is by buying any altcoin that meets your requirement.
What is HODL?
HODL was originally a misspelling of the word ‘HOLD,’ which later morphed into an acronym for the phrase ‘Hold On (for) Dear Life’ through ups and downs. HODL is simply meant an investor resists selling his/her investment despite drops in value that might scare other investors into selling.
Being a holder it takes a strong argument to believe that the market for sure will bounce back stronger than before—To provide the necessary confidence to the investors, a minimum of one year and ideally a three- or five-year lock period is recommended. This would also allow ample time for your digital assets to grow so that the network can able to provide a liquidity pool to every investor. There are three steps of HODL strategies:
- Step 1 – Acquire cryptocurrency;
- Step 2 – Do not sell; (lock period)
- Step 3 – Sell at the right time.
It is important to know when the right time is because this metric varies from one individual to another. The right time to sell will largely depend on the goals of investing as well as the condition of the asset. If these goals are met, the crypto holder can sell at any price in the market; otherwise, the investors will continue to HODL on. Many financial advisors are starting to recognize the value of long-term crypto investments as part of a financial plan. Some advisors still classify crypto as a speculative investment and only recommend investing money you can safely afford to lose, but others are taking a different approach.
Why Make a Long-Term Crypto Investment?
Both the volatility and liquidity of the crypto market have drawn in people with the attitude of ''get-rich-quick mentality'' and they are always looking for a fast way to cash out in a short space of time, but that’s not what this is about. Holding crypto assets is simultaneous to long-term investments and can be seen as a decent way to build a foundation of wealth and beat inflation.
In crypto patience often pays off well, thus after some sleepless nights, weeks, months, years with the constant fear of losing… one day you check your wallet, and to your surprise, you find 6 figures. Although you did very little effort, you got a very big reward at the end of the day. As a bonus, you won’t pay taxes until you cash out the earnings and your tax deduction is going to be very lower.The point here is, in almost every respect, holding makes the life of investors much easier and prevents them from being carried away by the burden of responsibilities. Crypto investment may have had huge peaks and troughs, but when you look at it from the long-term perspective, it's a good option if you’re happy with the level of risk and believe that cryptocurrency has a big future in modern society.
Long-term investments in cryptocurrency should be a part of your financial plan.
That being said, we don’t know where crypto is going and there are still plenty of novices associated with this investment. You’ve got to be willing to lose the money, otherwise, it’s going to be even more difficult to be financially independent; at least avoid making an emotional decision or pulling out your investment prematurely at the wrong time. Well, if you weather the storm and the crypto asset you had invested in sails to the moon then so too would your investment.
Crypto is a fairly new phenomenon with complex technology and processes. When you dig into how crypto works, you’ll find a lot of companies and investors who pour more millions into the industry. In the distant future, many industries will come to rely on this technology, which means it’s ripe for a long-term investment. Yes, there'll be a time for profit-taking!
In this way, there are more chances that some of them will increase in value, thus bringing profit and income into the pocket. If the crypto market continues to make big gains then you will obviously benefit, but even if it doesn’t there’s still something to fall back on. To build a strong crypto portfolio, one should consider adopting a diversified strategy and analyze the market to choose potential investment options. Every experienced crypto investor knows these important investment essentials:
- Portfolio diversification
- Long and short-term instruments
- Constant market research
Is GIFA Token a Good Long-Term Investment?
Frankly speaking, yes! Over the past months, GIFA Token (GIFX) value has increased and this has drawn in huge sums of money into its network. GIFA Token which was worth just $1.00 in 2020, has now reached $540.92 at the time of writing.
As the world of blockchain and cryptocurrency is moving towards mass adoption so too GIFX becoming valuable as its revenue grows steadily. It’s indeed a good idea to familiarize yourself with GIFA Token, in order to study the market so that you can make a knowledgeable investment decision.
Start investing as little as you can able to spare and afford.
GIFA Token is among the best cryptocurrencies to invest in 2022 the project is futuristic very promising and arouses the interest of institutional investors and individuals alike. If this is your first time, you are most likely eager to invest in cryptocurrencies, but we advise you not to anticipate the profit-taking, be patient, and take your time to build your investment portfolio. Yes, of course, the path is very challenging, but if you do it well and calmly, you will be better off and most likely see high returns on your investments.
GIFA Token has been on the market for long enough to prove its credibility and trustworthiness. Having a GIFX in a long-term crypto portfolio might be a good idea. The peculiarity of GIFA cryptocurrency is that it ensures your privacy and the crypto project is backed by self-sustaining physical assets. Moreover, the project is an infinitely scalable network where users confirm the transactions of other users.
Bottom Line
As the industry provides access to more than 1,000 crypto assets on the market that can potentially make you rich, one can choose any digital assets he/she likes. It is crucial to be prepared for the day when digital currencies will be a vital part of our daily lives. We’ve put this in writing to help you get started building a long-term crypto portfolio. Invest wisely, and may the lucky side of volatility be with you.