Hodl or hold on for dear life is a type of investment that grows widely in the crypto world especially when some people purchased crypto at a low price and didn’t sell it till the price goes up insanely later on and they made a lot of money
In other words, hodling is buying any asset to hold or not sell for a long time regardless the market volatility
Why is hodl popular?
The holding strategy is popular because as mentioned above you could gain x profits in the long term without the need to stress out when the price of this specific coin is going up and down in the short term
I think the idea of getting x100 or more profit is alone driving everyone to stick to this strategy without even doing the needed research and understanding the whole process
So in this post, I will talk about my own experience with crypto for the past 4 years and why I think that holding is not for everyone
Disclaimer: I am not a financial adviser, I am just sharing my thoughts with you
From personal experience and testing, I think holding is not for anyone who has a small amount of crypto or portfolio, or someone who doesn’t have a lot of cash to start an investment
Also, I know a lot of people online who only get crypto from games or faucets
What the holding will do to these amounts over time? Gaining them a couple of dollars!!!
Let's mention an example of a small balance amount
Let's say I am holding $10 of dogecoin when the price was $0.064 which is equal to 155.57 doge, and you know that the price can stay like this for months and years before getting a bullish move
So after a year and a half for example, the price goes up to $0.09 and I am still holding my 155.57 doge
What I gained so far?
I will tell you my $10 goes up to $14 in a year and a half, see not much earning but if I had a big amount the earnings will be quite good
Example: having $500 of doge when the price is $0.064 (7778.25 Doge)
And holding them till the price reach $0.09, now if I sell them I will get $700 which means I earned $200 just because the price goes up $0.03
Note: dogecoin is just an example, the process applies to any other crypto
That's the main reason Hodl is the best strategy for the ones that have a big amount of crypto in their portfolio, and personally, i tried sticking to the holding strategy and the profit was so small most of the time but on rare occasions, I gained a good amount
That’s why it’s best to think of growing your portfolio first before start hodling
You need to think of a good plan to trade when there is an opportunity to grow your balance and divide your portfolio into 2 parts
For example leave 40% of your gains or whole portfolio for hodl, and 60% for trading or buying low selling high
Final words
Hodl alone won't make you rich or earn you a decent amount of cash if you don’t have an out plan for your coins
You need to know when to sell your crypto otherwise the earnings you could make will vanish when the price goes up in front of your eyes without really selling it
If you only get your crypto by faucets and games, then it's better to sell them when the price goes up and buy more when the price is down, and when you have a decent amount start holding some of your coins but with the intention of selling when the price reaches your target goal
If you have a large amount of crypto to hold then you can forget about them and don't stress out about the daily changing of price and only sell them when the time is right for you
What is your strategy for your crypto portfolio? Are you a daily trader or a Hodling person
