It is often said that long-term holding of cryptocurrencies is safer because short-term trades can repeat sudden surges and crashes. Why? In this article, we will explain the basis for cryptocurrency beginners.
What is Gachiho?
Gachiho means long-term holding of virtual currency. It means investing over a very long period of time, from a few days to a few months, rather than competing in the short term. Some people hold stocks for a long span of 5 to 10 years, but it can be said that this is a highly recommended investment method for beginners to invest. This is for the following reasons.
The cryptocurrency market is on the rise
One of the reasons is that the cryptocurrency market is in an uptrend. In the virtual currency market, the NFT market is expanding, and the market price is improving in tandem. As a result, all currencies tend to rise steadily. Of course, if you want to own it, Bitcoin is better. Bitcoin is the most stable cryptocurrency.
No short-term thinking required
If this is doing something like day trading, then the charts are so distracting that you can’t do anything else. However, in the case of long-term holding, it will be a game over a really long period. Therefore, you can also do other work while you leave it, so it is also efficient. But no investment is 100%, so there is no guarantee that you will win.
No knowledge required
In the case of short-term trading, the entry timing is the lifeline. If you miss the timing, you may not be able to take advantage of the points, and you may not get much profit. But when it comes to long-term investing, technique and analysis are less important. Whether the price goes up or down, you just have to have it without thinking about it, so it’s very simple.
The advantage of long-term investment is that you can start with a small amount. Because if you win, you can take a big price range. On the other hand, in the case of short-term trading, the price range that can be taken is small, so the number of entries is large, and the larger the capital, the greater the profit, but the greater the risk.
There are also disadvantages to using virtual currency. Of course, it’s not all good.
Takes time to turn a profit
The risk of long-term investment is that it will take time before you can make a profit. Moreover, it is not always profitable. And since it takes at least a few days to get results, the number of trades will be very small, so efficiency is poor.
Bitcoin is safe, but other minor coins are highly liquid and often crash more than when you bought them, making them almost worthless. This is the most scary part of virtual currency, so we recommend coins that are stable to some extent.
Exchange hacks are actually quite common. Virtual currency exchanges often report that some exchange has been hacked every year, so there is a risk of large losses. However, it is safe if the exchange has high security capabilities. Bybit is highly recommended for that.
Recommended by Bybit
Bybit has solid security measures and is an exchange with a large number of users around the world, so even beginners can invest with peace of mind. If you are interested, please refer to the article below to open an account.