The author explains that holding onto a coin, such as hbar, for too long after it pumps may not be an effective strategy. This is because even if the coin reaches a high price, holding onto it for too long could result in not making any money at all. In addition, holding onto a coin for years during a bear market could also result in not making any profit. Therefore, it is important to take profits when the coin pumps and not rely on a “hodl” mindset. The author suggests using the profits to invest in tangible assets like a house or car instead of just relying on numbers on a screen.
The Harsh Reality of What Happens After HBAR Pumps
Investing in cryptocurrency can be a great opportunity to make some extra cash. However, it is important to have a realistic approach to investing and not get lost in the hype of market pumps. In this article, we will be discussing the harsh reality of what happens after HBAR pumps and why it is important to spread your investments.
The Huddle Mindset
Many cryptocurrency investors adopt the huddle mindset where they hold onto their coins for dear life. This may seem like a good strategy when the market is pumping, but it can lead to stagnant returns in the long run. For example, if HBAR were to go up to 58-60 cents, holding on to it for too long could potentially lead to lost opportunities.
The Problem with Huddling
The problem with holding onto coins for too long is that it wastes years of bear and bull markets. In bear markets, the value of the coin decreases, and in bull markets, the value of the coin increases. When holding onto coins for too long, investors can end up breaking even after a few years of holding. Moreover, the cash value today is worth less than cash tomorrow, especially after inflation.
Take the Money and Run
The main message here is that whenever any coin, including HBAR, pumps, it is important to take some profits. In other words, don’t just sit and watch the numbers on the screen increase. Instead, take the money and invest it in something tangible like a new house, car or vacation. Remember, the numbers on the screen are just numbers until they become real money in your bank account.
In conclusion, investing in cryptocurrency can be a great way to make some extra money, but it should be done with a realistic and practical approach. The harsh reality of what happens after HBAR pumps is that if an investor holds onto their coins for too long, they may miss out on opportunities to make money. Instead, it is important to spread investments and take profits whenever possible. By doing this, investors can make their investments work for them in the long run.