Why Most Crypto Bloggers Sell Too Early
When blogging on platforms such as Publish0x and Hive, many choose to cash out their earnings as soon as they take custody of their earnings. Blogging on multiple platforms will, in most cases, provide bloggers with multiple income streams. These platforms typically reward their users in altcoins. On Read.cash, rewards are in Bitcoin Cash, while on Publish0x, rewards are currently in Ampleforth and Statera.
I think that, because earnings are in altcoins, users are afraid that holding on to their coins will ultimately result in a loss. However, one needs to look at the time frame involved. Holding your coins for six months, or even a year, could realistically result in a loss. On the other hand, locking away your altcoin rewards for a much longer period, say, two to five years, could have the exact opposite effect!
Another very important aspect is considering the stage the cycle is at. Essentially, the HODL approach is only beneficial when earnings are held throughout a bear market and then sold at the next cycle peak, or as close to it as possible. If earnings are in stablecoin, a better alternative would be to convert those earnings to alts. However, stablecoin earnings in the height of a bull market are better left as stablecoin holdings.
Why HODLing Is The Common Trait Of Successful Crypto Investors
When you look at those who secure incredible gains in the crypto space, there always seems to be a similar story. Either they got in early on a project, or they held a position for an extended period. Either way, it comes down to HODLing! I know a lot of investors tend to get excited about doubling or tripling their initial investment. This would be impressive if they were in any other market.
Despite growing into a multi-trillion-dollar asset class, crypto remains relatively young compared to traditional financial markets. I look at some of the tokens I earned blogging back in 2020, and the growth is incredible. I only wish I could have held on to all of them, but at least I was able to retain some. If you can, holding on to your blogging earnings can actually add up to a significant amount of money over a two- to three-year period.
Another option is for bloggers to sell 50% of their earnings while retaining the remaining 50% in altcoins. This is a decent hedge that helps you lock in some value while holding out for greater gains in a bull market. Either way, you want to be holding some altcoins when the market shifts bullish. This ratio can of course be adjusted to any percentage—for example, 30/70 in favor of either altcoins or stablecoins.
Lending is another effective strategy to incorporate while you HODL. Earning an additional 5% to 14% per year can go a long way in increasing the compounding effect. Platforms such as YouHodler and CoinDepo are excellent for smaller investors, while Nexo is often the preferred choice for larger investors. Either way, it’s another avenue bloggers can utilize to increase their earnings while they wait for preferred market conditions.
My Personal Approach
I am currently holding onto my earnings from the Hive ecosystem. This is mostly HIVE and LEO. There is not only the incentive of price appreciation in the coming years but a present incentive in the form of HP. When I suggest the coming years, most people think in terms of months. This is why so few experience significant gains in crypto. They do not appreciate the correct time horizon. They think that because prices appreciate so quickly, they can generate a quick profit, which is true but only half the story.
Regarding Publish0x and BCH-based platforms, I am holding back a small percentage of my earnings. I am, however, selling all my AMPL earnings, as there is no chance of significant upside due to the rebase mechanics. Over the years on Publish0x, I set aside some BAT and LRC, both of which have increased significantly. As I mentioned, I would have been much better off had I held on to all my Publish0x earnings.
Choosing The Right Rewards To Hold
Not all reward tokens are created equal, and choosing which ones to hold over the long term is important. It is imperative to study and evaluate each opportunity, as there are multiple, unique contributing factors, including utility, community support, exchange listings, and liquidity. Very low liquidity would personally discourage me as an investor, and I think many investors would share my sentiment.
Riskier or more speculative assets can always be converted to Bitcoin (BTC) or Ethereum (ETH), allowing you to participate in a bull market. Reward tokens that have strong fundamentals are, of course, your strongest and quite possibly your safest tokens to HODL. The objective is not to hold these coins indefinitely but to hold them over years or multiple cycles, ultimately increasing your earnings substantially.
The Power Of Compounding Crypto Rewards
Earning a few dollars a week per platform might not seem life-changing. However, the compounding effect over a multi-year period, together with price appreciation, can produce a more favorable result. In fact, given the right circumstances and asset allocation, life-changing results are possible through an avenue many overlook because they are too short-sighted. Compounding can produce incredible results, provided enough time is provided.
Final Thoughts
Blogging across multiple crypto platforms is a great way to stay in touch with the market and continue accumulating crypto without having to buy it! You will be surprised how many people have built their crypto foundation utilizing these opportunities and others. Constant yet modest accumulation has a way of producing unexpected results. I remember buying very small amounts of BTMX tokens in 2019 and 2020.
BTMX was the token of BitMax, which was later rebranded to AscendEX. I was purchasing at $0.03-$0.05 and was shocked to see this token hit $3.26 in 2021! The moral of the story is not to despise small allocations, especially when they are in the right place. Thanks for stopping by, and see you in the next edition!
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