The vast crypto universe and its rising popularity has generated, in addition to great profitability, a jargon of its own.
Words like Altcoin or Stablecoin are often present, but also somewhat strange ones like HODL.
It is important that you always remember the importance of familiarizing yourself with each term of the cryptocurrency ecosystem. In this way you can develop correctly and avoid confusion.
If you want to know more about the HODL strategy and its many benefits, we invite you to continue reading.
What does HODL mean?
The expression “HODL” is a retroacron of “Hold On for Dear Life”, from the word “HOLD”. Translated into Spanish it would be “Keep it for your whole life”.
And that is precisely the central motive in crypto terms, to keep or hold your cryptocurrencies for a long time. Its meaning is identical to “buy and hold”. The idea is to acquire your virtual currencies, but without spending them.The HODL consists of storing your cryptos and waiting for their revaluation after a long time. Click To Tweet
It is important that you keep in mind that this “conservation” behavior would be maintained even in less flattering times. Keeping your assets even if the market trades down seems like a mistake, but it is an efficient strategy.
As long as the value of your cryptos increases, the initial investment will be revalued. You just have to be patient and wait for the right time to make your move.
Why is HODL associated with the Crypto world?
The crypto community has used the word HODL since 2013, when a user posted a post on a Bitcoin forum. He himself made a typo by placing “I AM HODLING”, in an apparent state of drunkenness.
What he actually wanted to write was “I am holding.” He explained the reason for keeping his tokens despite the low price at that time.
This funny error became so popular that it is now commonly used in the cryptoglossary. So much so that there are already HODLERS, now we invite you to know the advantages of being one of them.
Benefits and advantages of a HODLER in the Crypto world
First of all, do you know what a Hodler is? He is an investor looking to buy services and products with his cryptos in the near future. It is that person capable of waiting for a long time keeping his wallet still.
The Hodler’s strategy has been and continues to be profitable. An example is the case of the famous “Whales” or whales and exchange houses or exchanges worldwide. These are the largest crypto holders in the market.
Definitely, being Hodler generates many advantages, so we mention some points in favor:
- As volatility influences assets, there are ups and downs that allow you to analyze and learn from the market.
- The HODL is the best long-term investment in terms of profitability.
- Through the HODL strategy you will be able to obtain a good return on investment with your cryptos.
Hodl’s main strategic moves
The HODL technique aims to obtain profits strategically. First you invest in a digital asset, the cryptos and save as long as necessary. Until its value rises exponentially.
Now, how to guide yourself? What to do during the process? You have several very useful alternatives according to your needs.
Buy more cryptocurrencies when they are cheap
This formula can help you in your beginnings as a Hodler. Study the market and its fluctuations, acquire your cryptos when their value is below your estimate.
Buying fewer cryptocurrencies when they’re more expensive
In this case you can choose between waiting for your cost to decrease or buying a smaller amount when the value rises.Define your HODL strategy and start earning more than profitability in the crypto world. Click To Tweet
The positive part of acquiring fewer cryptos is that you will not allocate your entire budget to the purchase of expensive coins. However, you will be taking a small but significant step, which will later translate into profits.
Sell cryptocurrencies when they are really expensive
A Hodler never sells his cryptos, but if you decide to sell them you can allocate a controlled and calculated percentage without decapitalizing.
How to avoid risks with the HODL strategy in the crypto market
It is essential to ensure the survival of the cryptocurrency you choose to make HODL; remember that you should not take this type of investment lightly.
Keep in mind that the strategy applied in cryptos is also functional in investments such as real estate.
- Select an asset that really appeals to you. Then research all aspects related to your crypto, platform, etc.
- Try to allocate a risk capital, an amount that you can lose.
- Never spend more than you earn, it is a rule that applies in almost any business or investment.
- Remember that safety is paramount. Always have a wallet and keep your private keys under full reserve.
HODL’s strategy is present in the crypto market and is a good investment idea. If you want to get more performance in your digital operation, you can take this route, as long as you are cautious.
Remember that information is key, so study the market and the various assets. This will give you a clear picture to know how to perform and achieve success. So, do you already know what to do? In CCOINS we can help you, since we have a platform that brings together all the necessary functionalities to carry out your operations with cryptocurrencies. Whether you are a Hodler, trader, investor or simple crypto enthusiast, here we are for you.