Crypto returns are based on price appreciation or simple/compound interest concept?

[Aman_369]

Hello everyone recently I started investing in cryptocurrency so I want to know how crypto returns work basically it means it works on price appreciation or simple/compound interest....
For example if I hold cryptocurrency tokens like we hold stocks for 2-3 years it generates more returns or I buy just before bull run ... Which will be more profitable???
Is power of compounding also works in cryptocurrency field ?? If not then why should we hold it for long period of time ?

 

[Tax with Ria]

Hello everyone recently I started investing in cryptocurrency so I want to know how crypto returns work basically it means it works on price appreciation or simple/compound interest....
For example if I hold cryptocurrency tokens like we hold stocks for 2-3 years it generates more returns or I buy just before bull run ... Which will be more profitable???
Is power of compounding also works in cryptocurrency field ?? If not then why should we hold it for long period of time ?

But before getting lured for profits, remember that the profit will be taxed at flat 30% u/s 115BBH, and no loss will be set off from any income.

 

[Anant1221]

Crypto currencies are just like stocks. They work on the principle of price appreciation.
However, crypto is much more volatile and risky field than Stock markets. If you want to invest than its better to go for Bitcoin or Ethereum.
As investing in other crypto tokens is very risky and should be done with proper research of the token and its use case in current and future scenario.

Holding bitcoin and eth for long-term ensures that you are kind off safe from rapid ups and downs of the market and will gain from average price appreciation over the period of time.

 

[sundernarwat]

Hello everyone recently I started investing in cryptocurrency so I want to know how crypto returns work basically it means it works on price appreciation or simple/compound interest....
For example if I hold cryptocurrency tokens like we hold stocks for 2-3 years it generates more returns or I buy just before bull run ... Which will be more profitable???
Is power of compounding also works in cryptocurrency field ?? If not then why should we hold it for long period of time ?

Dear Aman, Because you have already started investing, you must be aware of a few things

1. Crypto Investing is a high-risk high reward thing - you can lose all of your funds and also gain high returns in short periods (only if you time markets properly )

2. Learn about crypto market cycles to time markets, also this will help you get maximum returns

3. This time is before the bull run phase, you can start purchasing by following the "dollar cost averaging strategy"

4. Choose Crypto Exchanges & Crypto Projects after doing research

5. BTC & ETH are the most safe investing if you want to be on safe side, but the returns are less, these returns are also possible in stock markets by reducing risk

Let me know if any other queries