One of the biggest questions in the cryptocurrency universe is this:
Is it worth holding some cryptos?
Each day, this question gets asked hundreds of times across Twitter, Instagram, Reddit, and various other public forums.
Usually, the people who ask this question are beginner investors. However, industry pros will also pose this question when discussing particular cryptocurrencies that are experiencing volatile price changes. After all, nobody wants to hold on to a cryptocurrency that is only going to continue decreasing in value as the future unfolds.
Holding Crypto Is a Good Investment – If You’re Willing to Take the Risk
As of 2022, there are quite literally thousands of different cryptocurrencies that you can invest in.
There are big names like Bitcoin, followed by smaller, lesser-known cryptos like OKX.
Market forecasts vary in reliability. For example, some people believe there will be a crypto market crash soon, whilst others believe there’s never been a better time to invest your money into long-term cryptocurrencies. The idea behind this is that you invest your money, hold the cryptocurrency (or currencies) in your digital wallets, and then sell them when the market value peaks.
Of course, it doesn’t always work out this way. Sometimes, cryptocurrencies can decrease in value and never return to their original standings. When this happens, the investor loses money – simple. This is why you must choose carefully when it comes to your crypto investments.
For instance, Terra is a fast-growing cryptocurrency that many pros believe is a worthwhile investment. You can start by taking examining Terra’s current prices at OKX, which will help you to understand its market performance over the past year.
Where Can I Store My Crypto?
There are various places where you can store your crypto.
Firstly, there are exchanges.
Exchanges are where you get to buy and trade cryptocurrencies.
Essentially, if you buy crypto from an exchange and then choose to hold it there, you can generally expect faster transactions.
If you don’t want to hold your crypto directly in the exchange, then you can transfer it to your crypto wallet instead.
The main type of crypto wallet is a hot wallet. This is a type of wallet that is always connected to the internet and crypto network. Of course, this makes purchasing and trading a lot easier.
Cold wallets are offline crypto wallets that are not connected to the internet.
Cold wallets are protected by private keys and addresses given to the owner of the wallet.
Generally, cold wallets are safer because they aren’t connected to the internet or crypto network. As a result, this makes it impossible for cybercriminals to hack them from a remote location.
Think of it as storing a valuable art piece you have in a padlocked safe. The art piece is automatically safer and more secure – however, if you want to use it, you must go through the effort of unlocking the safe and taking it out. In the crypto world, this means slower transactions and less convenience, which is why day traders don’t use cold wallets.