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Author: Admin | 2025-04-28
Often your return on investment would be much higher if you had bought early with a lump sum. However, this is quite hard to predict, particularly for beginners.HoldingHolding (known in the crypto community as HODLing) can be a very effective long-term trading strategy. It is favoured because it requires a lot less work than many other methods. It involves buying a crypto asset and holding onto it for an extended period whilst avoiding urges to sell a digital asset if it rises or drops dramatically. The idea is that although the market can fluctuate wildly, good projects will generally follow an uptrend over higher time frames.The downside is that you could have made good profits off your cryptocurrency investment, but you held expecting the price to go even higher. Additionally, sometimes you can be stuck holding a bag (keeping your coins without selling) for a lot longer than you ever planned to. Tip If the coin you want to hold also offers staking, that is an excellent way to increase the size of your position through staking rewards while holding and waiting for an increase in the asset price. Buying the dipBuying the dip is a strategy that should only be used on crypto assets with very solid fundamentals. It is a form of trend trading that is primarily concerned with identifying and buying dips or short-term price corrections in an uptrend. The amount the asset has to drop by to be considered a “buyable dip” varies from trader to trader. There are many different ways to calculate these dips, but as a rule of thumb, some traders will buy the dip if the asset has fallen by 10-20%.The disadvantage of this method is that you might keep buying a falling asset thinking it’s a dip every time. Key Takeaway
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