here are two strategies to survive – Corriere.it

The bearish trend that still bitcoins below the psychological threshold of 20 thousand euros seems destined to last until the first half of 2023. Its trend is influenced by both the distrust derived from the failures of the Terra Luna and Ftx platforms, and the collapse of the shares of technology companies which have lost between 50 and 99%. Many small savers are now losing what they set aside over the yearsthe, recovering only part of the investments. Instead, those who believe in the long-term value of the protocol are choosing to “hodlare”.

Blame the whiskey

Behind what seems like a simple typo there is actually a rather curious story. In 2013, user GameKyuubi opened a conversation on the Bitcointalk industry forum titled “I am hodling”. Halfway between a drunken rant and a brilliant publicity stunt, the post railed against those traders who can predict market swings and brag about their successes to those who sell everything on the first wobble. Not so GameKyuubi who, despite the price of bitcoin having dropped, decided to keep what was accumulated. Since then, the community has been using the neologism “hodlare”, a mispronunciation of the English word to hold, to block cryptocurrencies while waiting for better times.

The expert’s voice

Usually “hodla” those who trust in the underlying technology – says Gianluigi Ballarani, author of the book “Homo Crypto” and the podcast “Cryptoland” -. Already in 2018 everyone gave Bitcoin for dead, yet we are still here talking about it. The entire ecosystem is engaging human and economic resources to innovate and correct the errors that have emerged. However, true mass adoption will only occur when we are no longer forced to buy cryptocurrencies, but will begin to receive them as an alternative means of payment to the euro, dollar or yen. In the meantime, it is advisable to proceed with a careful and gradual strategy, betting only what we are willing to lose.

“Cryptobonds”

Staking is another tool to consider. Some blockchains link the validation of new blocks to passing a proof of work in which miners compete with each other using their own computational powers to solve complex mathematical problems. Others, on the other hand, bind it to a proof of stake, a sort of “proof of participation”. In this case, the more virtual coins you manage to stop, the more chances you have of being chosen to approve transactions. To win the challenge, therefore, companies are forced to borrow more in exchange for interest, on the model of a normal bond. The promise of earnings varies according to the flexibility, the type of digital currency and the period of time granted by its holder to the company.

Follow the money

By staking we mean the blocking of funds or tokens in exchange for interest or prizes – warns Ballarani -. It is wise to ask who pays these rewards and whether there is a cash reserve behind them or lenders ready to provide it. Usually it is the blockchains that do this, but it can also be third parties such as exchanges. a good rule of thumb is to always read the white paper, the information document issued by the project promoters, to get an idea of ​​the seriousness of the initiative.