Wednesday, February 21, 2018

Even Ethereum co-founder says that HODL is not the way to invest or trade in cryptocurrencies

The volatility of cryptocurrencies like Bitcoin, Litecoin, etc... make it difficult to trade or invest based on 'old school' analysis like fundamentals and technicals.  And yet despite many of them moving both up and down by 75% in price over a single month's time, there are alot of 'gurus' of cryptocurrencies who advocate the ideal of Hold On For Dear Life (HODL) trading.

However there is one individual who is a major player in the crypto sphere who is dead set against the HODL mentality, and as a co-founder of the Ethereum cryptocurrency, his opinion carries a great deal of weight in the industry.

Looking for good financial advice? Vitalik Buterin, co-founder of the digital currency Ethereum, jumped on Twitter to offer just that, but it’s probably not the advice you’d expect. He believes traditional assets are still best for those who want to generate lucrative interest from long-term investments. Cryptocurrencies on the whole are still in the infancy stage, and don’t generate interest.   
“Cryptocurrencies are still a new and hyper-volatile asset class and could drop to near-zero at any time,” he states. “Don’t put in more money than you can afford to lose. If you’re trying to figure out where to store your life savings, traditional assets are still your safest bet.”  
The problem with cryptocurrency is that its value is volatile. For instance, on November 19, 2017, one Ether coin valued at $355 in real-world cash. By January 13, 2018, the value skyrocketed to $1,139 and then plunged to $591 per coin by February 5, 2018. Investing in cryptocurrency is obviously risky business.  
Investing in this emerging technology does sound promising, but as Buterin points out, now may not be the time for those looking to build a large investment value over time. Cryptocurrencies appear to be a high-risk investment that require constant monitoring to determine the ideal time to purchase and/or sell digital coins. – Digital Trends

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