“HODL”

If you’re even vaguely familiar with the world of cryptocurrency, or trading in general, you’ve probably heard the phrase “HODL”. It comes in both noun and verb forms: to HODL is to Hold On for Dear Life. Hodlers, as they are called, are the ones who are HODLing their assets. We see this acronym used especially when value starts to take a dip.

So why is HODLing such an important and key factor when it comes to trading? Well, as we’ve stated before, everything takes a ride on the rollercoaster of value. It’s inevitable that your assets will, at some point or another, go down (even if it is to rise again). 

No one likes to lose money, so it’s only natural that we’d want to HODL our portfolio balance, rather than the assets causing it to dive. However, there’s a substantially significant payout for those who can take a temporary loss, especially when it comes to crypto.

These digital tokens are in their beginning phases; either in their development or in making their way to becoming mainstream currency. The coins were in no way intended to be a get rich quick scheme (unless you take a look at some $h!*-coins). Even so, some coins like DOGE continue to shoot to the moon in price, amongst a series of dips and dives. HODLers are keeping some assets alive. Nevertheless, trading is never a get in and “cash-out” game. It takes knowledge, a little bit of faith, and patience. 

It’s important that we all look into the assets which we are investing in, so that we know the value that truly lies behind it. Knowing is why people HODL. They HODL their ETH, BTC, favorite stock, gold, etc. because they know that the value is real. They have information that gives them a trusted hope in the increase of their portfolio. When putting your money anywhere, you must ask yourself: can I HODL? It would behoove any trader, especially the crypto traders out there.

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Written by SMH from ofthefreemarket.com on May 10, 2021