In the recent months, I've seen an increasing adoption of the word HODL and its association with positive connotations in almost all crypto currencies. However, the problem lies within the behavior of self-rationalisation. Many individuals and investors attempt to rationalize their losses through the HODLing strategy. Sure, we're both aware that the crypto world is very resilient and are quick to recover from big damages. But, let me ask you one thing. What is your opportunity cost for HODLing?
Two days ago, I moved all of my cryptos into FIAT at $2.8k/BTC. And yesterday, I wrote an article detailing my short strategy for the coming week. Needless to say, My shorts have already netted me more than $300 per BTC, and this does not include my opportunity to buy those sold Bitcoins at a much lower price.
So, if you are a HODLer and didn't take any action in times of these opportunities. Tell me. How much did you REALLY lose?
Don't get me wrong, I believe that HODLing is a great strategy in most cases. In a highly volatile market where the price movements are unpredictable and frequent, it is often wise to ignore micro-volatility, and HODL the coin. However, do not fall into the trap of self-rationalisation bias, and understand the significance of the opportunity costs in your HODL strategy.
