My Argument For Re-investing Cryptocurrency Earnings Into The Cryptocurrency Market Instead Of Withdrawing Into Fiat Currency.

While exchanging into fiat may be great for extra disposable income, individuals are taking the risk of missing out on the future value of the token.

While all individuals have different circumstances and have different income requirements, the choice to hold the majority of earnings and gains in the cryptocurrency market is by nature more risky compared to exchanging for fiat. While it may be nice to have extra disposable income, individuals are running the risk of missing out on a portion of future gains in price level that the token is able to achieve. I have the ability to re-invest all of my earnings and gains without taking any income for myself, which has proven to be very successful over the past several months. When an individual is continually increasing there stake in various tokens as there revenue comes in, they are able to achieve a position that was accumulated at a range of different price levels which leaves them less exposed to over-paying. Projects like Steemit give a wide range of individuals the ability to take part in 'mining' through posting and interacting on the platform, which gives many individuals the ability to acquire stake, that wouldn't have been able to otherwise. 

The structure of the reward system on Steemit is very beneficial and important in my opinion because it gives individuals the liquidity that some users desire, while promoting and offering incentive for long term investment. The powerdown period seems suspicious to many new users, but in reality it is a huge factor in enabling the trading price of Steem to remain more stable than it otherwise would be. I haven't powered down at all in the last months, but I have been using the SBD I have earned through posting to diversify and increase my other cryptocurrency investments. I did withdrawal sufficient funds for the purpose of disposable income for a month awhile back, but have seen much better success with the position of re-investing my liquid earnings into long term buy and hold positions. 

While short term income is important, I am much more interested in taking positions to increase my potential to accumulate long term wealth. 

I am by no means a man that is motivated mainly by money, but achieving long term financial security is something that I have a very strong desire to achieve. While holding cryptocurrency is thought to be more 'risky' compared to holding traditional financial assets, I believe that the short term volatility is something that is to be expected before projects gain adoption. The majority of the volume traded in the cryptocurrency market is conducted by speculators and short term traders, which inevitably cause much greater levels of volatility compared to individuals purchasing for long term positions or for use on the platform. The heavy presence and influence of speculators also cause an increased amount of liquid supply, and as the liquid supply of a token falls it often causes an increase in the price level of that token. As more individuals begin to purchase tokens for the purpose of use on the specific platform rather than speculation, I believe we will begin to see serious differences between the liquid supply and the active demand. 

Protecting your initial capital investment is often a very smart practice when a position experiences serious gains, but it is likely a tough choice for many large investors. I am by no means a large investor or stakeholder in any projects, but I have been able to acquire a great deal of stake proportionate to my initial investments into the cryptocurrency market. The amount of stake that I have been able to acquire because of the Steemit platform really isn't nearly as important as all that the Steemit platform has introduced me to and 'taught' me. I stumbled across the Steemit platform about 3 months after my first cryptocurrency purchase for the purpose of investing, and I really don't think I would be nearly as informed and involved with cryptocurrency if it wasn't for the Steemit platform. 

I had and still have a great interest in blockchain technology as a whole compared to trading/investing in cryptocurrencies, and Steemit introduced me to so many different great projects and realities that I didn't realize prior to joining. There are so many new users within the cryptocurrency space who are involved in trading, but still have little to no idea on what the token they are trading actually does and stands for. I was definitely one of those users for my first several months of involvement, and Steemit really opened the door to the power of many technologies that I had prior experience with. One of the biggest events that has had a major impact on my opinion relating to holding my capital within cryptocurrency for the long term was when I sold out over 1000 Steem for less than 10 cents, only to see it begin it's price reach over 1 dollar just 2 months later. I considered that possibility at the time, but it really seemed like the safest and best way to protect my investment at the time. Looking back through my prior trades on Poloniex serves as a great reminder of the potential benefits from remaining in a long term position, regardless of how grim things may look at the time. 

I believe that by the end of this year the price levels across many cryptocurrencies will be substantially higher than many imagine them to be, and I am very excited by the opportunity to have increase the size of my positions while the price levels remain comparatively low. I believe that we are on the brink of a major increase in both investment and adoption of various cryptocurrency projects, and I believe that the risk associated with holding capital in long term cryptocurrency positions are extremely minimal when compared to the potential for growth that many projects have. I believe in Steem and the future success of the Steemit platform, but I also acknowledge that holding a diverse range of different positions is a safer strategy with the same potential for success. Being able to cash out Steemit earnings into fiat is a great feeling, but being able to acquire a larger stake in the platform and other platforms could be much more rewarding in the future. 

I really hope that you enjoyed this post, and I urge you to leave any comments, input, questions, ect. in the comments below! Thanks for the support and for reading!

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