23 Mar Hold On for Dear Life to your Cryptocurrency
Posted at 16:25h
in Crypto Art
The HODL Phenomenon
The concept behind holding on for dear life, or “hodling” is nothing new to the world of invsting, nor is it only applicable to cryptocurrency investing.
You should manage your crypto portfolio as you would any other investment portfolio. The fundamental idea behind hodling is to let the winning trades run because doing so is both the easiest and most certain way to make large returns over time.
At first glance people often assume that hodl is just a typo of ‘hold’. This is partially correct.
The term “hodl” originated during the 2013 December where a Bitcoin investor vented his frustration with a post titled “I AM Hodling”. Here, he explained that only good traders know when to sell Bitcoin and identify bear markets. He also admitted that “Hodling” was a typo.
Hodling has moved on to become a strategy for investing in cryptocurrencies and an abbreviation for “hold on for dear life”. But should you always hold on for dear life or hodl each cryptocurrency?
FUD in the Crypto World
The crypto world moves very fast. So much so, we sometimes refer to “crypto time” as a different scale of time, similar to “dog years” in which there are so many new projects popping up almost daily, price pumps and crashes, and of course media stories promoting FUD (fear, uncertainty, doubt) causing novice investors to panic or at best feel uneasy.
While there is little we can do individually about any of this, having an understanding of these factors and their regularity can pay off for the newbies. They will keep calm and HODL.
Be like Chad HODL, not the Virgin Panic Seller
Prices should continue to be wildly volatile, governments should continue to threaten to ban crypto and then rescind these threats, and new projects certainly will continue to emerge claiming they will dethrone major cryptocurrencies and blockchain projects with their superior technology.
If you truly understand this, you will be able to see through the FUD and be more like the Chad HODL.