Bitcoin hodl strategy
Even if the price of Bitcoin (BTC) drops off a cliff, investors committed to the HODL strategy shouldn’t do anything unless the fundamentals have changed. Once you’ve set yourself up with HODLing, this is a passive investment strategy. Simple, But Not Stupid. Despite its simplicity, HODLing . Aug 16, · During this moment in the Bitcoin market, with the price surging over the past three months, there is a notable shift in the hodling market. A recent report by Chainalysis stated that North American investors are opting for a “conservative buy and hold strategy,” especially compared to their eastern counterparts. Jul 11, · Hodling Bitcoin is a strategy that comes especially during hard times in order for BTC holders to avoid selling when the price is falling and increase the selling pressure. At the same time, this strategy can be used by users that believe that Bitcoin could reach massive prices in the future.
Bitcoin hodl strategyHODL: What The Best Crypto-Trading Strategy Should Look Like | Hacker Noon
As an example, Palihapitiya highlights his experience within the Tesla community. In , Palihapitiya says he found a community of investors who were crowdsourcing knowledge on the company, which led him to bet on Elon Musk. It existed in this long tail of people who took it upon themselves to build a community that wanted to understand the company, not necessarily to be a blind cheerleader, but they would really go and double click and they were doing a level of work that was incredible.
We are starting to create financial increments attached to everything that you can imagine. It used to be the case that you would only buy sneakers. As for his stance on Bitcoin, Palihapitiya he says he remains bullish on the number one cryptocurrency.
Please check your inbox or spam folder to confirm your subscription. Thank you. What Is Blockchain? What Does Hodl Mean? Rather than getting nervous and analyzing the charts on a daily basis, you would be able to follow the real developments that take place in the crypto and blockchain industries. Despite price drops and bear markets, companies continue to invest in the long run. These are the firms and startups that we should pay close attention to in order to understand how the industry is evolving.
Hodling will definitely be a good way to reduce the stress you may have when handling cryptocurrencies. You know that you are paying attention to the developments taking place in the industry rather than focusing on the price drop. Remember, you are here for the long term, not a trader, which is a different activity and strategy. One of the interesting things about hodling Bitcoin is related to the fact you can start playing an original HODL game. The name of this game is Hodl: The God of Crypto and it would be a great way in which you can hodl your funds but getting some emotion as well.
The game is an 80s inspired arcade racer and side scroller that would allow you to move the prices of Bitcoin as you move forward in the game.
In the future, new games could be created related to Bitcoin and cryptocurrencies. Nevertheless, we thought this could be a good way for you to start enjoying cryptocurrencies and getting some emotion while hodling Bitcoin. As we have previously explained, one of the main advantages of hodling Bitcoin is not experiencing the REKT feeling. Also, this is something that traders can explain better. In particular, this is something that happens to those that actively trade in the crypto market.
For instance, when they have an open position and the market moves to the contrary side they were betting. As a result of this trade, they can be considered REKT. Moreover, if they do not create a tight stop loss and if they leave their trading platform for a few hours, they can definitely be liquidated. With the Bitcoin hodling strategy, this does not happen because you are already prepared to hodl for the long term. This is contrary to traders that speculate for just a short period of time.
Also, you are not looking for fast gains when hodling but instead, you are waiting and planning for the future. If you are a Bitcoin trader and you have a large position in Bitcoin for which you are expecting to make some profits. Instead, the market falls, then you will experience the REKT feeling.
Nonetheless, hodlers would rather average buy instead of buying at the top or at high prices and waiting for the price to grow. Thus, this is something important to take into consideration as well. Finally, the dichotomy between Holding and trading is definitely something you can think about. In addition to that, take time to find out and evaluate whether your ideal strategy is to trade or hodl for the long term! Disclosure: This post could contain affiliate links. This means I may make a small commission if you make a purchase.
Share this! Hodling BTC is safe. Injection of new money in the markets. About Latest Posts. Carlos Terenzi. Carlos is an international relations' analyst specializing in cryptocurrencies and blockchain technology.