- Sommi underscores the advantage of holding XRP with a 70% ROI on a $100,000 investment.
- Trading based on a commonly-used indicator would have resulted in a 76% decline over the same period.
The Allure of Holding XRP
Crypto pundit Sommi recently championed the merits of holding the cryptocurrency XRP over actively trading it. His perspective stemmed from an impressive case study: a $100,000 investment in XRP back in late 2018 that blossomed into $170,000, reflecting a notable 70% return on investment (ROI).
❤💛💚💙
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
Sommi’s insight revolves around the seductive world of trading and the potential pitfalls that accompany it. While many traders utilize a plethora of indicators to augment their strategies, predicting the trajectory of altcoins can be akin to gambling. It demands not just skill, but also a blend of fortune and intuition.
To illustrate, Sommi referenced an indicator popular among traders and juxtaposed its outcome against the buy-and-hold approach. The results? Relying on this indicator would have shaved 76% off the initial investment, dwindling it to a mere $24,000 during the same period.
An Insightful Analysis of XRP’s Movement
In an examination of Sommi’s data by The Crypto Basic, it was identified that the pundit’s analysis leaned on historical XRP price movements. Digging into the numbers, Sommi’s initial investment would have garnered 235,620 XRP tokens at a rate of $0.4244 each in November 2018. Fast forward to March 2022, and the XRP price touched $0.7215, thereby propelling the investment value to $170,000.
However, it’s essential to recognize that, as of the current update, XRP is trading at $0.5275. While this marks a 26.8% decline from its March 2022 peak, the initial investment remains significantly in the green, now valued at over $124,000.
Endorsing the notion of long-term holding, another interesting revelation came from Ripple’s CTO, David Schwartz. He revealed that an initial investment by his father of $5,000 in 2013 (buying XRP at $0.005 each) has now catapulted to an impressive $527,000, translating to an astronomical 10,450% ROI.
It’s evident that the crypto landscape is riddled with both opportunities and risks. And while holding assets like XRP has showcased impressive returns, it’s paramount for investors to align their strategies with their comfort level and financial goals.
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