When it comes to Bitcoin investment, you may have an image that you can’t win without learning difficult chart analysis. However, it is said that ditching Bitcoin can win a lot. Long-term holding can be a shortcut to victory.
Can you make money with bitcoin?
Bitcoin is said to be profitable even if you ditch it. It is said that this is because Bitcoin is a key currency, so it will not end with a big crash. Of course, it is necessary to aim for the timing when the long-term holding starts as much as possible. Here are some ways to increase it while ditching it: The profit margin is said to be 2% to 3%. Therefore, it is also better than depositing it in the bank.
Lending is a mechanism that lends virtual currency to people and earns interest during the lending period. There is no need for difficult technical analysis because it is a mechanism that allows you to earn yield income while leaving the virtual currency and waiting for the price to rise. However, once lending is deposited, it cannot be withdrawn for a certain period of time, so this point is a big risk.
Staking is a mechanism where you can earn yield income as a reward by depositing. Since virtual currencies that use Pos can be deposited, bitcoins that use Pow cannot be deposited. There is also a lock period for staking as well. No withdrawals can be made during the lock period, so if it crashes at this time, it will be a loss.
Advantages and disadvantages of long-term holding
There are advantages and disadvantages to holding bitcoin for a long time.
high price grab
It is not recommended to start long-term holding when Bitcoin has risen significantly. As for the timing, it is better to play at a calm timing after the crash. If you want to see more, it is recommended to start holding after confirming that the daily or weekly level has changed from falling to rising.
don’t look at the chart
When it comes to day trading of cryptocurrencies, you always have to watch the charts. However, when it comes to long-term trading, there is no need to bother to look at the charts in detail every day. You don’t need to watch the price movement, just letting it sit for more than a few months is enough. Therefore, it has the advantage of being less stressful.
Small investment OK
Due to the volatility of bitcoin, many people start with a small investment. In other words, even if you don’t have much money, you will be able to make a profit by holding it for a long time. It is recommended to start with a small amount so that you can take appropriate risks.
Cryptocurrency exchanges have been hacked many times in the past. If you leave it on the exchange for a long time, the risk of hacking will increase. Since the cryptocurrency market is a growing industry, the rewards for hackers are huge. North Korea has trained hackers and started hacking on a national scale, and there are exchanges that are actually being damaged.
Long-term holding does not guarantee 100% profitability. When holding for a long time, there is a certain lock period, so you cannot withdraw during this period. Since there is a possibility that a crash will occur during this time, there is also the possibility that it will become a village. Also, if you hold it for a long time, if you withdraw it in a short period of time, the interest rate will be low, so it will not be very tasty.
Exchange goes bankrupt
Some virtual currency exchanges go bankrupt due to users leaving. As with hacking, the exchange itself may not be able to operate if it loses the trust of its users. You need to choose a reliable and well-known exchange.
Open an account
In order to actually start investing, you must first open an account. MEXC allows you to open an account for free, so you can easily open an account. The article below explains how to open an account, so please refer to it.