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Cryptocurrency has continued to gain more attention as an investment opportunity due to the remarkable breakout in 2017 and 2020. Investors that held Bitcoin before then sure made lots of returns. There are many risks but the markets are exciting and people have made and lost fortunes in these markets.
Hodling is a long-term strategy that helps investors generate gains from long-value appreciation rather than losing it in short term to the highly volatile crypto market. Hodling is the safest, easiest, and less demanding way to make money on your investment in the crypto market. Generally investing in crypto is risky but some critical information guides people on how to be a successful hodler.
Fundamental analysis is an aspect of market research for cryptocurrency that tries to detect the authentic and objective value of crypto or token regardless of the market price. When you have done adequate research into the cryptocurrency you will know if the cryptocurrency is undervalued or overvalued and also you will know if it is a good coin to hodl or not.
Fundamental analysis looks at how external factors control the price of the cryptocurrency and some of the metrics it uses include:
How the company provides a valuation for their coin
The whitepaper and understand the functionality and usage of the coin to see its formidability in the future
Economic forecast and News
Government position and regulation
Usability and adoption
Project development and media coverage
Fundamental analysis is extremely important in the crypto space because of its high volatility of price and irregularity. One has to do his diligent research objectively without fear and emotion.
It provides you with knowledge of the right investment and a credible understanding of the value of an asset.
It allows you to collect and analyze information that is external to the internal reality of the market
It provides you with information that makes you differentiate between a bubble and a credible coin.
It is less complicated than technical analysis
Most times we make bad decisions because our skepticism has been overshadowed by emotions, fear, and greediness. Skepticism is normal when it comes to your money. Avoid extremely risky platforms, exchanges, and wallets, and don't leave anything to chance, however, your skepticism should be coupled with a reasonable and conservative investment approach. Always beware of orchestrated pump-and-dump schemes and scams. It is your skepticism that will inform you whenever things don't add up. When something looks too good it's probably a wrong choice.
Hodlers need to have a full understanding of the technology behind blockchain, its functionality, and shortcomings. It does not necessarily have to be to a doctorate level, just some basic knowledge adequate to guide your investment.
Information is key in the crypto space. You need every possible information available to you. Some of this information can influence the price of the cryptocurrency. All hodlers should all news and development with no exception because the blockchain space is rapidly evolving, socially, technically, and legally and staying updated is important to keeping money safe.
A working strategy is also paramount, you need to have an investment plan, how you plan to invest, a target to take profit, and the duration of the investment.
Security is very important, Your wallet password must be kept securely both online and offline. Do not share your private key and trade on highly secured platforms and exchanges. Any breach in the security of a platform can result in the loss of fortunes.
Choose a trusted and reliable wallet and exchange to trade and keep your cryptocurrency.
Do your own diligent research
Do your fundamental analysis
Be up to date with news
Do not invest all your lifesaving, only save the amount you can afford to lose
Diversify, do not put all your eggs in one basket
Lock up your crypto and tokens. It will relieve you of mental pressure.
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