Why it is so important to HODL in crypto
You have likely heard the term HODL thrown around quite a bit, but there really is some serious math to back that up in regards to cryptocurrency investing.
To start with, HODL originated as a misspelling of the word "hold" and it has stuck on pretty well ever since.
It most literally means to:
- Hold
- On
(for) - Dear
- Life
HODL!
In regards to BTC, especially the way it has traded lately, I am sure many out there are wondering if they should just sell the coin and then buy back in when it is near the bottom.
It's a nice thought I know.
However, if you need any more convincing that you probably won't be able to time it correctly, take a look at this chart:
(Source: https://twitter.com/fundstrat?lang=en)
What does this mean exactly?
Basically that chart is saying that each year, on average, if you miss the 9 best days out of the year, you miss all of the gains.
Which means that if you are out of bitcoin waiting to get in, you may miss the 9 best days and miss the majority of the big moves up for the entire year.
Tom Lee, the creator of this model says exactly that:
“The reason ‘buy and hold’, or HODL, makes sense for Bitcoin is that a handful of days each year account for the bulk of gains for Bitcoin."
(Source: https://bitcoinist.com/market-strategist-tom-lee-hodl-bitcoin/)
There you have it, if you are scared right now, just HODL and hope everything turns out alright.
Perhaps some praying might be warranted as well. ;)
Stay informed my friends.
Follow me: @jrcornel
Short and sweet.
HODLING is the best in crypto, no matter what.
Bitcoin's hype cycles form a fractal-like pattern when you zoom out on the time scale. It will continue to do so until mass adoption finally brings the price to an equilibrium point.
And yes I created this poorly photoshopped picture. Also I know the price went higher than $18,486 but I couldn't get the cursor to pinpoint the top ($20K).
This is really interesting. Thank you for sharing.
:-D I am a little bit obsessed with Bitcoin haha! I also spend a lot of time chatting online with Bitcoin poker friends and they are very knowledgeable.
True
Bitcoin has fallen more than 80% 5 seperate Times. This will be the 6th then it’s game on. Must eclipse 80% though.
FollowBack every day 100%
Thanks for the informative article. Keep up the good work.
Tom Lee, who used to be the former Chief Equities analyst for JP Morgan is one of Wall Street's top Bitcoin bulls. He is advocating for investors to HODL. His Bitcoin Misery Index currently stands at 28 which is at the 'misery' level. Whenever this has happened before Bitcoin has rebounded and gone on to another bull market phase.
Mass adoption is coming to the West it just might take abit longer than S.Korea where a third of the working population have crypto investments. Bitthumb exchange is planning to roll out an app allowing thousands of stores and landlords to accept crypto in payment. In Japan the infrastructure is being rapidly developed to enable mass adoption.
Demand is not going anywhere. The millenials will continue to drive demand for cryptos forward over the next period.
Excellent comment. Good times ahead, just have to be patient, don't sell at least until 2020 and look at how much of the world has changed.
HODL and keep buying the dips!
This might help viewers and bitcoin lovers
Wow 2017 was crazy. No wonder we are having this sell out before taxes.
Yeah bro its been a crazy ride but good Times are around the corner.
Complete agree mate. I don't have much, but I'm holding until June 2020 at least. So I don't worry much about today. Cheers!
Team #HODL
i am also hodl hope it will rise soon
Great post! Here's an article I just wrote about the recent crypto bubble https://steemit.com/cryptocurrency/@crypticat/what-s-happening-meow-crypto-bubble-bursts
At this point, nothing left to do but HODL. I haven't tried praying, but I'm trying to shame Bitcoin into moving up... hasn't worked so far, but if I get really mad it will come to the point where I won't be checking the crypto markets for a whole day, so Bitcoin will know I'm really pissed!
Say it like a Lady should!
I tried to stop watching crypto markets for a few days. It was 4 days ago and I was holding half of my capital in ethereum. It hearts but 100% my bad. Which hearts even more !
I'm glad that you posted this and have the sentiment of HODLING! I'm a huge fan of Bitcoin/Litecoin and it's not easy keeping a smile on my face right now during all these dips and mini-bounces. I feel that we'll hopefully have some nice volume and gains at the end of the summer and around the new year. I'll continue to smile and stand strong when the non-believers and no-coiners mock and laugh....while I keep filling my bags and crossing my fingers. Great post. -Respect
Very informative, thanks for sharing. I've smashed the upvote button for you!
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