Basically, this strategy of holding / holding digital assets for a longer period of time does have a number of advantages and disadvantages for crypto investors. Here are some of the advantages and disadvantages of the hold strategy in holding digital assets that need to be known :

1. Advantages

• Long-term advantages
  One of the main advantages of the hold strategy is the potential for long-term gains. While digital asset prices can experience significant fluctuations in the shorter term, many investors believe that crypto has long-term growth potential due to the adoption of blockchain technology and the potential for wider use in the future.
• Reduces stress levels
  By adopting a hold strategy, it can also reduce the level of stress and anxiety associated with frequent price fluctuations in the crypto market. By not actively trading/trying to capitalize on short-term price changes, investors can avoid the mental stress that often comes with attempting to speculate on the market.
• Avoiding Short-term Price Fluctuations
  As is well known, digital asset prices can fluctuate sharply in the shorter term, especially due to the relatively low market liquidity compared to traditional markets. With a hold strategy, investors do not have to worry about short-term price fluctuations and can ignore the temporary instability of their assets to focus on long-term growth potential.

2. Disadvantages

• Market Volatility
  The crypto market is known for its high price volatility and that refers to large and rapid price fluctuations in a short period of time. While the hold strategy aims for long-term gains, this volatility can create sharp price changes in a short period of time. While the price of digital assets can rise rapidly over a period of time, it can also fall dramatically in a short period of time. Such market volatility can cause anxiety and mental stress for crypto holders, especially if they are not prepared for extreme price fluctuations.
• Security Risks
  A hold strategy can also lead to security risks in a number of ways, including when storing digital assets for longer periods of time on unsecured wallets or exchanges, it can increase the risk of losing assets due to potential hacking or security attacks. In addition, there is also the risk of missing out on opportunities to profit from price fluctuations. During periods of time when digital assets experience rapid price increases, there is an opportunity to sell them and secure profits. However, with a hold strategy, that opportunity may be missed as the asset is retained in the portfolio.