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HODL is a cryptocurrency trading strategy that means keeping and not selling. HODL traders often hold cryptocurrency assets and ignore short-term market volatility.
There are two reasons why a trader wants to make HODL: the first is that they really believe in existence or technology; And secondly, if they hodl for long enough, the gains from their initial investments and patience will be repaid in the long run and they will make a larger percentage gain than the daily transaction.
Trading and HODL: Who Makes the Biggest Profits?
The crypto market crashes that occurred in 2018 and 2020 are excellent case studies supporting the HODL investment strategy. In December 2017, the Bitcoin price reached $19,700, but in November 2018 it dropped as low as $5,500. Then, from 2018 to mid-2020, Bitcoin's price remained (more or less) below $10,000 and rarely exceeded $10,000. However, a bull market began in the summer of 2020, and the Bitcoin price rose from $10,000 in June to $60,000 by April 2021. It became parabolic and as a result some day traders made money, but at the same time many people lost
When Should I Stop Doing HODL?
People always ask these questions: How long should I HODL? Should I continue to HODL or take the profit? Which is better, HODL or day trading? Should I HODL or sell?
The ending of the game changes for different people. Some say you should HODL until your coin is worth an amount you're happy with, then sell it and take the profit. However, there is always the possibility that prices will continue to rise after you sell, and you may regret your decision not to wait any longer.
Others say HODL your token until it becomes a fully spendable currency so you don't have to worry about having to sell it back. Instead, you will be able to spend what you have as is. The risk is that not all coins are created equal and no one can guarantee the future and ability of any crypto to become a full-fledged currency. This is especially true of all the new Central Bank Digital Currencies that many governments around the world are developing.
If you are undecided between HODLing or selling, you should ask yourself: Do I believe the price of this cryptocurrency will increase in the future? If the answer is yes, you should HODL.
What do you think about Hodl and trade? Please comment.