Cryptocurrencies are causing a significant impact on digital finance after the constant fall in their price, which has significantly destabilized the market.
Crypto investors have a second thought when they are in a state of panic and susceptibility is relatively high since it continues to decline, placing it in one of the most extreme downtrends that the pioneering digital currency has experienced worldwide.
Cryptocurrency sales, for this reason, have caused the market to weaken in a more significant proportion, only this is a factor that for many is quite positive, and these are the cryptocurrency depositors.
What are cryptocurrency holders?
Every financial market has investors of various characteristics who make the most of any of the phases generated from the supply and demand process, which is why the digital market also has multiple investors, and one of these is the Holders.
Holding refers to storing or maintaining various digital currencies for the long term, where the sale of these digital assets is mainly avoided.
One of the most exciting aspects of this crypto investment strategy is that newbies or digital investment professionals can employ it.
Crypto investors who adopt this tool to obtain returns tend to diversify their investment portfolio to see results from highly consolidated projects and emerging proposals.
It is one of the tools that usually generate significant returns; for example, 1 Bitcoin in 2018 was worth around 29,000 dollars, for last year in October, it was worth 60,000 dollars, a profit of more than 200%, just for keeping it stored.
In 2013 its value was so low that it was at 13 dollars per unit; by 2017, it reached a historical maximum of 20,000 dollars, generating more than 1500% profitability.
What is the strategy of the holders?
The records of Bitcoin in recent months regarding the valuation of its assets surprised the entire world and, of course, its followers.
The constant downward trend could be being driven by a series of external factors such as inflation and the drastic measures that the Fed has taken in terms of interest rates, and of course, the war in Ukraine, causing panic in crypto users driving them to get rid of their digital currencies.
Let’s thoroughly evaluate the situation of the digital financial market. We will find that those who have maintained the market have placed all the trust in cryptocurrencies by storing them and not letting themselves be invaded by the need to sell.
The fall of terra, without a doubt, also had an influence, but it was the holders who maintained the market so that the fall was not more resounding.
For example, the holders that have a significant effect on market trends are those who have accumulated more than 100 units of Bitcoin in their assets.
Holders ‘ strategy is to wait for a trend reversal where their cryptocurrency units increase. Still, in a downtrend, they tend to buy to take advantage of the decreased value and store them with their other holdings.
This strategy could change the valuation of crypto assets since it has reached a relatively low value. But, on the other hand, it could be considered the ideal price to make more significant investments and wait for the rise to get 70,000 dollars per unit.
Who are the pioneers in Bitcoin holding?
There are a large number of digital currency users who have been in charge of executing this strategy of storing cryptocurrencies.
The first to incorporate this term into the cryptographic market was GameKyuubi , which at the time of making its strategy public, transcribed it in a wrong way and thus became known as HODL.
If it is about storage, the largest is Satoshi Nakamoto, creator of Bitcoin, who holds more than a million Bitcoins.
Other major stockists include Barry Silbert, creator of Digital Currency. Group and the Winklevoss brothers.
On the other hand, the various exchange platforms and the famous whales should also be considered; both are fundamental for developing the traditional financial market.
Latter usually stores more than 6% of the Bitcoins that are issued to date; the whales are in charge of fulfilling their functions since they can influence the movements and development of the price of crypto activities.
Conclusion
The fluctuations experienced by the digital market are due to the unity of some elements among which users play a key role according to the type of investors.
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