The Hold Tab Explained
Whether you’re new to the BOTS app or you’ve been using it for a while, you must’ve definitely explored the Hold tab in the BOTS app. In this post, we explain all there is to know about this tab.
When you visit the Bot store, the third tab in there is the Hold Tab. Here, you will find all the hold bots - old and new. Let’s dive in deeper.
What are hold bots?
Hold bots buy and hold the asset of your choice. Do you believe Bitcoin or another asset of your choice will grow in value long-term? Or do you always want to hold the top 10 alt-coins?
Recommended: What are altcoins?
If you’re looking for a straightforward way to get started with crypto, the ‘Hold’ tab could be for you. Start investing today by adding funds to bots in this tab with the push of a button.
Pros of hold bots:
✓ Hold bots can be an option for investors who believe that an asset has strong fundamentals and will appreciate in value over time.
✓ It is a simple and passive investment strategy, requiring little day-to-day attention or management.
! You should be ready for long-term investments as this type of investment includes the potential for significant losses if the asset depreciates in value.
! Hold bots can limit the diversification of your portfolio, and having all eggs in one basket can be risky. So mix your hold bots with other types of bots.
The different categories of Hold bots that you may come across in this tab:
- Buy and Hold: Once you have picked your HODL bot, the trading bot will automatically buy the asset. It will then hold on to this investment for as long as you like. You can always invest more in the asset by simply making more funds available. Or you can close your position whenever you want. The advantage of the Buy and Hold bots is that it becomes relatively easy to get simple exposure to the crypto market.
- Rebalancers: Rebalancer bots automatically rebalance your portfolio and make sure you have the right amount of exposure to the right cryptocurrencies. The rebalancing happens with an algorithm, the DNA of a trading bot. However, not all Rebalancer algorithms are the same: thus, finding a bot that fits your risk appetite and strategy is important.
And there you have it! A short yet helpful crash course on everything you need to know about the Hold tab.