The debate over the merits of long-term XRP holding versus the volatility of trading the cryptocurrency has been reignited by influential figures within the crypto community. Sommi, a prominent influencer, recently shared insights into the advantages of “HODLing” XRP, emphasizing the challenges and risks associated with trading in a highly dynamic market.
❤💛💚💙
I used an indicator out there which people think will get them to outperform holding via trading.
It only benefits you, if you know which Altcoin will go Really Well in the next few years.
That's a skill itself, and luck + gambling.
XRP starting $100k capital worth… pic.twitter.com/fcOCEesidK
— yourfriendSOMMI ❤️💛💚💙 (@yourfriendSOMMI) October 4, 2023
In a recent post on a popular crypto forum, Sommi revealed that he had explored an indicator that many traders often seek to leverage for short-term gains. However, he cautioned that success in trading largely hinges on the ability to predict which altcoins will thrive in the years to come—a task that combines skill, luck, and, to some extent, gambling.
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Holding XRP Is Analysed and considered the best. here’s why
To bolster his argument, Sommi presented a compelling case study involving a hypothetical investment of $100,000 in XRP in late 2018. According to Sommi, this investment saw a remarkable 70% increase, reaching a valuation of $170,000. This substantial growth served as a testament to the appeal of holding onto XRP for the long haul.
Drawing from the indicator he previously mentioned, Sommi highlighted that traders using the system would have experienced a starkly different outcome. They would have witnessed a discouraging 76% decline in their initial investment, with its value plummeting to $24,000 over the same timeframe.
Sommi’s calculations are based on the performance of XRP, which traded at $0.4244 in November 2018 and climbed to $0.7215 in March 2022—a 70% increase over this period. However, as of the present moment, XRP is trading at $0.5275, reflecting a 26.8% decrease from its March 2022 price. Despite this drop, the investment remains significantly profitable, with a current worth exceeding $124,000.
It’s important to note that while this analysis favours the “HODLing” strategy over active trading, market participants should always choose strategies that align with their risk tolerance and investment goals.
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Interestingly, this discussion on the benefits of long-term XRP ownership echoes a recent revelation by David Schwartz, the Chief Technology Officer of Ripple. Just two days ago, Schwartz disclosed that his father had purchased over 1 million XRP in 2013 at a mere $0.005 per XRP. Today, these tokens would be worth an astonishing $527,000, showcasing a staggering 10,450% return on investment over the years.
These instances underscore the potential for substantial gains through patience and conviction in the cryptocurrency market, serving as compelling examples for investors to consider their long-term strategies carefully.