Nothing is safe. Trade and hold both have their own risks, if we cannot determine the trend (uptrend, downtrend) of the market and the appropriate entry point, it is very dangerous. Hold has the advantage that we are less affected psychologically and have more time for other jobs.
First of all, we need to determine the market trend and choose the right time to hold.
Determine the market trend
- Observe with the eyes
Can we observe the market capitalization increase/decrease? Are BTC and Altcoin uptrend/downtrend? This requires some experience.
- Technical analysis
Through analyzing the 1D, 1W, 1M time frames… of BTC and Altcoin, we can determine the market trend relatively accurately. You can visit tapchibitcoin.vn to receive the most reputable market and technical analysis
- Update market news
Update information but it is selective information from developers, from reputable news sites that have been widely accepted and used by the community. Nowadays, there are also news applications to track market fluctuations because the news is updated in real time.
Choose the right time to Hold
If you have this thought, you are extremely wrong. If you buy regardless of the price because you think this coin has too much potential to hold, there is nothing to worry about. It sounds reasonable, but if unfortunately the market or that coin is in a downtrend, it will take you a long time to return to its original value. Bitcoin once fell from $1000 to $200. Or like in mid-August, early September 2017, many holders lost 80-90% of their accounts. There was a friend who invested all his fortune of 400 million, then almost lost everything, and was so shocked that he wanted to commit suicide. The stories sound unbelievable, but that is the reality of this market. Anyone who has participated for a long enough time will understand that what I said is not wise. And the final goal of investors, whether they are TRADER or HOLDER, is profit, so be a smart investor to earn a lot of profit and minimize risks.
- Should you buy when the market is going up?
Not necessarily, guys. There are green candles that are traps, coins that are easily manipulated to pump prices, they are using methods to push prices up, attracting investors instantly, when reaching a certain threshold, they will sell off coins in an instant, the price will fall vertically.
- Market storm
You need to determine which is the storm, which is the technical adjustment of the market?
A storm is when in a short period of time BTC or Altcoin drops 20-30% or more and all virtual currency markets fall in price.
When a coin pumps strongly and quickly, of course there will be an adjustment to a reasonable price. It’s as simple as when we invest, see the coin pump strongly and quickly or the coin pump continuously, we will ask ourselves a skeptical question: Is this coin pump abnormal? Should we take profit or not? and the majority will take profit, the price will be adjusted to a reasonable range that investors can accept. This is called price adjustment.
- The bigger the storm, the more opportunities there are for Holders
When determining the market trend or predicting an upcoming storm. Sharks will take profit and wait for a good buying opportunity, while investors compete to sell off. As a professional holder, we must learn how to follow the sharks, analyze market trends, take profits and wait for good prices to buy and hold. When choosing a good price zone to hold, we do not need to care too much about it.
- How to wait for a good price to hold
You should carefully analyze the technical aspects of the 1H, 4H, 1D, 1W, 1M time frames, draw support lines. There will be weak and strong support zones. After determining a good support zone, you divide your capital into small orders in these zones. Note that you should not put all your money into one support zone to avoid risks when the storm is too strong.
Which virtual currency is suitable to hold and the real value of a virtual currency
- Which virtual currency is suitable to hold
A basic principle is that we should choose “mined coin” to hold. We should not hold issued coins. Issued coins, to put it simply, are like paper money, you can print and issue as much as you want. But anything that is inflated is not liked by the majority.
- The value of a virtual currency
The nature of a coin, even BTC, is actually worthless if it is not recognized by society. This is easy to see, just a relatively bad piece of information about BTC, BTC immediately drops 40 – 50% in value and we see the storm again.
A coin is considered good when: Mined coin + Good technology + Low transaction fees + Clear development schedule + strong development team and most importantly, it is interested and accepted by the community. Typically, some pure ICO coins that have recently been listed on the exchange but meet all good conditions, are highly appreciated by the community and have a relatively fast growth rate are very suitable for us to hold.
