Over the years, there have been different methods when it comes to investing in cryptocurrencies such as XRP. As usual, investors have seen successes using these different methods but the argument remains about whether it is better to hold a coin or to continuously trade it. Along this line, a crypto analyst has come forward with their own research on which is the better of the two.
Better To Invest And Hold In an X (formerly Twitter) post, an analyst outlined why it is better to buy and hold XRP rather than to try trade it for higher profits. He points out that buying and holding XRP over the last five years would yield better results than trying to use an indicator investors believe would bring more profits.
According to him, investing $100,000 back toward the end of the year 2018 would translate to $170,000 today. This means there is a 70% profit margin for holding the altcoin for the last five years. However, trading consistently during this time period would be disastrous.
Better to hold than trade | Source: X The analyst explained that using this indicator would see $100,000 in 2018 turn to $24,000 today. So the returns on $100,000 using both methods when investing in XRP are almost identical but in different directions, as trading would result in a 75% loss compared to a 70% gain for holding.
Additionally, the analyst said that investors are choosing not to hold when that is in fact what they should be doing at this point. “Many will ignore this message and end up on Coinfessions Rekt in 2 years,” he adds.
Becoming A Global Asset The recent bullishness surrounding the XRP token has not been without merit. The altcoin’s price had surged following the court’s ruling to reject the appeal filed by the United States Securities and Exchange Commission (SEC).
In addition to this, the capabilities of the XRP Ledger are becoming even more apparent to investors. As crypto influencer Alex Cobb points out to his over 150,000 followers on X, the transaction per second (TPS) count on the Ledger is 3,400 TPS.
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Putting this on longer timeframes means that the XRPL can handle 204,000 transactions in a minute, as well as 12.24 million in an hour, and 293 million transactions per day. “XRP is truly designed to be a global utility asset for banks all around the world,” Cobb said.
As Ripple marks victory after victory over the SEC in the US, XRP’s reach is expected to continue to expand. This also drives its global asset narrative, especially with Ripple’s services being tailored to large institutional investors.
Fluctuations remain while token tries to climb back up | Source: XRPUSD on Tradingview.com Featured image from CoinMarketCap, chart from Tradingview.com
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