HODL vs HOLD: The main features of effective cryptocurrency traveling – Bits Media

Cryptocurrency investors adhere to different strategies. One of them is the Hold, or holding (from English Hold - keep). At first sight, it is as simple as possible - I bought a coin and watch, How it gets more expensive. But in reality everything is more complicated.

Hodling

The holding is not unique The phenomenon in the world of finances - many traders go along this path. BUY and HOLD strategy (Buy and hold) It has long been known to the stock market as the asset based on the investor's faith in the faith and profitability in the long run. Why sell an asset, If he will grow stably in price?

In the world of cryptocurrencies, the holding strategy is primarily applied to bitcoin, one of the most conservative assets, since its current position and potential deflation (BTC mining will end after the last of 21 Million coins, and many BTCs for one reason or another have already found themselves or will be lost forever) The BTC price in the long run is quite a lot of faith in the faith in the stable increase.

Cryptocurrency against the stock market

Many of those, Who practice the holding, They believe him in the best strategy.

There is an interesting example, associated with the American exchange index S&P 500. I'll introduce myself, that someone has invested $10 000 In this index in 2006 year. Holders to the beginning 2021 The years would have $41 100. If we leave the brackets of this equation by the most successful days for the index, then on the balance sheet will already be $18 829. This indicates, what if, with active trading, skip at least a few important prices of the price (which, It is not always possible to predictly predict), then the total income can be significantly reduced.

Of course, There is no guarantee, that the asset will be able to steadily grow in price - and this is the main problem. Moreover, the problem is often psychological - crypto is able to make significant fluctuations in a matter of hours as up, So down (Typically, this class of financial assets is referred to high -voltage). Panic sale of crypts out of fear of a stronger drawing - a dangerous strategy.

Holding and Hodling

Often the strategy of the holding in cryptotraining is called hodling. The word with a typo has become a meme, When, one dramatic for the price of Bitocoin's day a few years ago, the Reddit user under the nickname Gamekyuubi created a thread with the name "I am hodling" (instead of the correct I am Holding - I hold). The blogger wrote off the mistake for a little one earlier than the whiskey, And he explained the investment strategy with the desire to maintain funds, By investing them in a reliable asset. Since then, in relation to cryptocurrency, the word hodl is often used instead of hold.

Later, the crypto community even came up with the decoding of the term Hodl - “Hold on for Dear Life” - cling to a precious life. However, such an interpretation seems far from always true - instead of panic holding bitcoin at all costs, many holders are guided by cold conviction in the long -term prospects of the first cryptocurrency. In other words, There is nothing panic or convulsive in their strategy, what, How can it seem, It follows from the word "Hodl". Against, They are guided by calm (fanatical?) confidence: no matter what, Bitcoin will grow in price. Therefore, short -term fluctuations in the course, cryptosims and other similar bearish moods of such investors are not interested in.

The word "Hodl" went into use, However, you should not neglect the investment strategy, which it describes. In the end, There are hodler, who bought bitcoin year, Let's say, in 2017 for $4 000 and since then they hold it on their wallet - and can their strategy be called unsuccessful?

Strategies and features

What should you keep in podling? Perhaps, The main thing is not to panic. If sure, that cryptocurrency will bring you a lot of money in the long run, it is useful to develop reasonable immunity to adverse signals. If many people sell on the nerves, You should think tightly, Before you join them.

Bitcoin has already sagged many times in price and after that he had more than played. If you are a Kholer, You can calm down with this. Of course, pattern is always capable of violating, But if your long -term strategy is based on faith in an asset, It should be fed. Credo hodler: Minor losing weight, Kholer eventually win. Therefore, patience, Calm and reasonable faith are the main resources of all, Who is goals.

An important sound measure: Do not keep bitcoins on the exchange. First of all, You will add excess risk, not with bitcoin itself, And with the reliability of the exchange. Secondly, You will have an extra temptation to put the crypt into the circulation, And this is already a betrayal of the Hodler strategy. therefore, The best option is a cold wallet.

Theoretically, you can consider the steaking option-in this case, the very fact of possession of cryptocurrency will allow you to receive some income.

Of course, Opponents of the Hodlling (More specifically, Traiders and scalpers) They may object: Active speculations on crypto -rhms are potentially more profitable. It may be true, However, the more operations, The higher the risks. Yes, certainly, they, who see and do not miss the possibilities, capable of earn a lot more. But for this you need to understand the technical analysis, develop your own trading methodology and actively monitor the market signals, news. Not everyone has the time and possibilities for this. Of course, Active trading is a great way to earn. The problem is, that it is associated with additional dangers. Hodling - much more conservative strategy. Of course, With your risks, but still much less adventurous. Moreover, Do not think, that active trading and hodling are two mutually exclusive strategies. It can be useful to diversify not only your portfolio, but also their strategies.

This material and information in it is not an individual or other other investment recommendation. The view of the editorial office may not coincide with the opinions of the author, analytical portals and experts.