2 min read
In the crypto world there are dozens of terms (most in English) that try to explain different situations or movements. If you do not know English, we understand you and that is why we are going to explain to you: what is hold?
If you have seen Game of Thrones surely the term “Hold” will take you back to the character of Hodor holding a door, if you have not seen Games of Thrones you will surely be saying: say what the fuck does that word means?
Holding into the crypto environment means keeping the possession of one or more cryptocurrencies for a long period of time without selling them. This is the most popular strategy used in the crypto market since most users do not have the necessary knowledge or desire to trade cryptocurrencies, that is, buy and sell cryptocurrencies waiting for the price to rise or fall.
Holding vs trading
Although both strategies have the same objective of generating profits, we can see that each one has its own characteristics.
To be a holder you don’t need much knowledge, just buy cryptocurrencies at the best possible price and keep them in a safe place. On the other hand, to be a trader you have to train, study the market and develop strategies based on future data and estimations, since when buying and selling cryptocurrencies there is also the risk of ending up losing. This does not mean that knowledge is not required to hold, since the holder must investigate in which projects he is going to invest in the long term, taking into account which are the work teams, what is the solution proposed for the future etc.
Now that you are clear about what “hold” is, you can say that you already know the simplest and least risky strategy, but that it has still provided many benefits to those who have chosen to follow it. Sometimes, even above those who have spent years dedicated to analyzing the markets to try to determine the right time to buy and sell cryptocurrencies in Spain and the rest of the planet.