A lot of cryptocurrency firms have attracted investors because of their low fees and fast transactions. They achieve this via proof-of-stake consensus, something that will not be on any cryptocurrencies. However, transaction fees have gotten pretty expensive, pricing out a lot of retail investors from using their network.
As a result, a lot of new tokens like HODL have gained popularity on smart chains. New tokens are made almost every day, presenting opportunities for investors to get to new crypto on a Binance Smart Chain (BSC). It is the same as SafeMoon, but it provides additional benefits to investors or token holders.
What is HODL?
It is a new DeFi or Decentralized Finance token on the BSC. It is named after the infamous currency term HODL which comes from early Bitcoin forum posts. Explaining the advantages of holding crypto back in early 2013, the original poster misspelt “HOLD” when encouraging investors to avoid selling their crypto.
Since then, the word HODL has become a common term used by a lot of cryptocurrency investors. This token categorizes itself as a liquidity generation and yield farming token. It is a liquidity generation token, since part of the investor’s “coins” are sent to the liquidity pool after its sale. Yield farming is an expression used to describe obtaining additional currency through interests.
They do this by taxing people who sell their “coins.” Although terms such as yield farming and liquidity generation may attract some investors to purchase HODL tokens, “Tokenomics” closely resemble the economics common pyramid schemes. The site incentivizes people to hold their investments; the longer they have their assets, the more rewards or tokens they receive.
Just like SafeMoon, when investors sell their “coins,” they will be charged as part of their investment. At least 4% of these charges are sent back to the liquidity pool; another four percent are redistributed to BNB or Binance Coin holders. The last two percent is redistributed to holders as a reward.
Whereas people will only earn Safemoon through their tokenomics, people can also earn Binance Coins with HODL. Since Binance Coins is less unpredictable compared to other tokens, a lot of people would prefer to be paid in Binance Coins compared to these tokens.
History of this cryptocurrency
HODL was released on May 2021; it is considered a new cryptocurrency. While getting in early to this kind of investment can provide excellent returns, spending money on new projects is riskier compared to purchasing more established crypto? Besides the order itself, this platform also lets individuals regularly collect their BNB earnings. In the future, the company is planning to merge NFTs or Non-Fungible Tokens and gamification to their platform.
What is NFT? Check out https://www.theverge.com/22310188/nft-explainer-what-is-blockchain-crypto-art-faq to find out more.
While these features can add value to this crypto, they will not be added to the token’s platform until at least the end of the year. This year, one million tokens are worth more or less 20 cents as of May. With a market capitalization of $160 million, there is a good chance that it will grow significantly this year.
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Use these things as leverage and earn interest
If a person wants to get into alternative coins without selling their crypto positions, solutions are available for them. These solutions let investors take out collateralized loans using cryptocurrencies, allowing them to use them as leverage to purchase more coins.
As long as they pay these loans, the currency they put up as collateral will stay in their possession. If a person is less risk-tolerant, these platforms have interest-bearing accounts that let them earn additional cryptocurrencies on their investments. They can add their crypto to these platforms, and they will start earning five percent to ten percent yearly interest, paid in crypto they hold on the platform.
Is HODL a good investment?
Fundamentally speaking, it is not a very robust investment. But it is pretty new to the game. It plans on adding more features to its arsenal in the coming months. If people continue to adopt PancakeSwap as their main Decentralized Exchange, HODL may continue to increase its value.
Methodology
There is a specific methodology to rank tools and exchanges. People prioritized platforms depending on pricing, promotions, offerings, customer service, user experience, benefits, security, and mobile application.
