As always, this article is made for educational purposes. This does not constitute financial advice nor trading advice. Past performance does not indicate future results.
Do not invest more than you can afford to lose. This is not financial advice; always do you own research 🙂
I’m never selling my ETH.
I feel like people give me a weird look whenever I say that.
“What do you mean never sell?”
The same definition as everyone else:
Two reasons for this:
- I believe in Ethereum’s vision of the future
- I can get cash when I want without selling — through internet bonds and collateralized loans
Today’s Use
I’ve written about Ethereum and its native coin Ether ad nauseam — talking about its utility as the most useful cryptocurrency right now.
You can so much with Ether, and that reason is enough for never selling Ether — simply because you need it in order to participate in DeFi and other Web3 applications.
I need to have ETH to use as gas in order to power my transactions on Ethereum, so that I can manage my DeFi apps, purchase NFTs, register a decentralized user name, and so much more.
Selling ETH would be like selling gasoline when you need it to power your car.
Future State Use
Zooming out, Ethereum still has so much room to grow into its vision as the world’s supercomputer: a permissionless, open platform for building anything.
David Hoffman of Bankless says it better than me:
Ethereum is the settlement layer for the digital economy… I’ve said for a while that the extent to which ETH is money is a function of how much Ethereum is the economy…
I expect the global economy to become synonymous with the Ethereum economy… As Ethereum becomes the canonical economy, ETH becomes the canonical store of value asset.
Ethereum will enable the next wave of the internet, Web3, where not just information but the entire economy — and the transfer of money and value — are digital-native.
As a result, ETH will be the asset that powers this new internet.
It’d be analogous to if today’s internet had a tokenized representation — the combination of all the intertwining networks, the fiber cables, the electricity, etc. And everyone needed to have this token in order to use the internet.
Wouldn’t you want to hold that asset?
Can’t Time the Market
I’ve resolved to the fact that I’m not a good trader — meaning that I can’t read the candle charts and indicators and accurately predict whether an asset will go up or down.
There’s a stat that 90% of day traders lose money, and while I haven’t assessed if I fall into that bucket of net-loss traders, I’m definitely either making less money than I would’ve if I had just HODL’d, or I’m making the same amount of money with considerably more investment from a time and emotion perspective by day trading.
I’m definitely starting to subscribe to the age old adage that time in the market beats timing the market.
Instead of quickly buying and selling ETH, I’m just going to hold onto it — and slowly accumulate more over time with periodic buys.
As a result, I free up the time and mental exertion of watching the market, allowing myself to do other things (like write blog posts lol).
On a day to day basis, it seems like ETH has wild up and down swings, but zooming out, ETH actually closed 8 straight months of gains — something I would have never realized by trying to time the market.
If the market crashes, then I’ll still hold, and I’ll accumulate even more ETH during that time period. That’s how high of a conviction I have for Ethereum’s vision and that Ethereum will be a foundational part of the new internet.
I’m definitely either making less money than I would’ve if I had just HODL’d, or I’m making the same amount of money with considerably more investment from a time and emotion perspective by day trading.
Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://medium.com/coinmonks/never-sell-eth-a9b2789d1725?source=rss——-8—————–cryptocurrency
