Core Question
Once you receive an airdrop, should you sell immediately, wait and see, or just plain hold?
Sell Immediately
You might be tempted to sell immediately. That way, you lock in gains from a volatile crypto and transfer that capital into something else. You are also riding the wave, as the time surrounding an airdrop has the most speculation and craze going around. Thus a high price to sell at.
However, a drawback is that many people choose this strategy, and so with so much supply crashing down into the market, that will drop the price. So unless you are a literal bot with no latency, you will probably sell at a lower price than intended.
Wait and see
Since selling might not right for you due to the price volatility from all of that trading, you might want to wait out the market and then decide what to do. But, this method brings a few things, and particularly FOMO.
We try to get the most out of something, which in this case is selling for the most amount possible. So, if we sell immediately and price rises say 50% over the next month, we feel like we are missing out and we regret our decision. This makes us do impulsive decisions, which could lead you to lose actual capital.
Holding (HODL)
If you decide, "You know what, I'm not going to sell. I think that this token will hype up and gain traction.", then you might be inclined to hold (or HODL, hold on for dear life) since this cost you nothing. However, again with this, you are susceptible to the chance that the demand just dries up and you are left holding a token worth $0. At that point, you should've just sold it.
Is there a definitive answer?
Short answer no. Since this is free, you might want to take a gamble. On the other hand you might just want to get it for some other crypto like BTC, ETH, SOL, or whatever.
Here is my general advice:
If you want to keep it to get more gains, then go ahead and hold.
If you want to wait out the volatility to make a more concrete decision, then wait a little bit and then reevaluate.
Or, if you think no one will use it/buy it or you just want another large cap crypto, then you will probably want to trade immediately.
DISCLAIMER
I am not a financial advisor. Please only use this for informational purposes only. All cryptos carry a risk. Always do your own research before deciding. I am not responsible for any of the outcomes that you may encounter.
