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- 1 The question of whether to hold or trade XRP has bothered many traders for a long time.
- 2 Recently, an analyst shared that holding the assets is better than trading them with indicators.
- 3 Experts highlighted the reasons for its price rise and its growing capacity.
It has been a million-dollar question for many traders as holding and trading could both pave the way for profits as well as losses. But things get more complicated when there’s only one crypto in focus. Ripple (XRP) is one of the most traded cryptos in the world. Traders have often mulled over the best way to trade in it. Recently, an analyst has put across their views on it.
Holding XRP Is Better Than Trading: Why?
A few days back, an analyst shared a post on X (formerly Twitter) about it. He stated that holding XRP is better than trading it. Explaining his theory, he said that using indicators and believing that they’ll do any good is a waste of time. It is a futile practice that does not bear any positive outcomes in the long term, he said. Instead, buying a small or a big lot of XRP and holding it for the long term is much more beneficial.
He even suggested that traders should at least wait for a period of 5 years for that. According to the analyst, an investment of $100,000 in XRP in 2018 would metamorphose into $170,000 today. This shows that the investors are getting a straight profit margin of 70% for holding the assets. On the other hand, if the traders continued to trade, they would face big losses.
The analyst emphasized using this particular indicator that saw the profit margins. He said that his own investment of $100,000 would mushroom into $24,000 today. Comparing both methods of investment, he cited some similarities and differences. He asserted that consistent trading would result in 75% losses. But if one just holds the assets, it would yield 70% gains.
However, the investors are doing exactly what they shouldn’t. He also said that many investors will ignore this post and join Confessions Rekt in 2 years. It should be noted that the recent bullishness of XRP had its own peculiar reasons. The price spiked at the time when the court rejected the SEC’s interlocutory appeal. Now, everyone knows that an uptrend due to such causes won’t last long.
Still, the silver lining is the ability of the XRP network became more prevalent among the investors. Alex Cobb, a popular crypto influencer, highlighted the efficacy of this blockchain to his followers. He said that the platform’s transaction per second (TPS) on the ledger is 3400 TPS. Cobb pointed out that a longer timeframe increased the blockchain’s capacity. He mentioned that XRP handled 204,000 transactions/minute, 12.24 Million/hour, and 293 Million/day.
Upshot
With this capacity, XRP can become a great utility asset for banks across the globe. The recent small yet significant feat against SEC resulted in positive outcomes for XRP. Besides the price rise, the network’s expectancy of growth has also increased. Consequently, its potential of being a fintech solution for large institutions has gained more weight. Investors are hoping for more positive news for this powerful blockchain.
Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
