HODL strategy: how to really behave with cryptocurrencies on hold

The approach to cryptocurrency can be conditionally divided into two types: trading (that is, trading on special platforms) and holding, or holding assets, including on crypto-deposit platforms. But experts note that many novice investors combine this with trading and, accordingly, incur losses.

The English-speaking crypto community calls the holding HODL, after GameKyuubi, a user of the Bitcointalk online forum, once the main place to discuss the first cryptocurrency. In 2013, a user posted a post titled I AM HODLING (“I’m holding!”), misspelling the word “hold”. Readers liked the “cry of the soul” of the man so much that his expression went viral.

But you also need to know how to walk correctly. OBOZREVATEL got acquainted with the advice of cryptanalysts and learned how to get the most out of HODL.

holding with income

Experts from the largest crypto exchange in Europe WhiteBIT recommend that novice hodlers invest money only in the strongest assets like bitcoin.

“In order for a HODL strategy to have a winning outcome, for most investors, holding an asset on a balance sheet means one thing: how can I win on my investment if I only hold and do nothing? The secret is that bitcoin and gold are the only “games of survival” during market turmoil, as evidenced by history, these are the only so-called games in which investors have won by beating the so-called “game.” In other words, not playing with the most stable assets is the most optimistic strategy “, the experts said.

The first most popular HODL strategy among investors is a cryptocurrency deposit. Cryptolending service is offered by various platforms, including trading platforms.

At the same time, the conditions for different sites are different, and WhiteBIT offers the highest annual interest. The 360-day plan of this company allows you to receive 28% of the income from a contribution in bitcoin.
Even without being traded on the exchange, bitcoin can generate income for the owner

The annual plan for the stablecoin Tether (USDT) offers even more benefits – 30%. At the same time, the maximum rate on other specialized crypto lending platforms reaches 17%.

Safety first

In turn, experts from the manufacturer of hardware cryptocurrency wallets Trezor advise following several rules:

follow the publications of trusted experts to keep abreast of the latest developments in the market;

be patient and not react to short-term fluctuations in the cryptocurrency rate, but it is possible to regularly buy an asset for a fixed amount (for example, $20 per week);

be vigilant when buying cryptocurrency, referring only to trusted exchanges with a good reputation.

To keep your investments safe, you should take the necessary precautions: store them in a cold wallet (the most popular models are Trezor and Ledger) and create a backup copy of the seed phrase, but store it in the most secure place. Also, no matter how much you want, it’s better not to talk about your possession of cryptocurrency even to your acquaintances.

Cryptocurrency loves silence

On top of that, Exodus recommends thinking long term. “Typically, bitcoin follows a four-year market cycle, and many hodlers keep their cryptocurrency for several years or longer,” experts say, advising beginners to be ready for HODL within 3-5 years.

In addition, they believe that it is better to forget about trading for this time. “The worst thing you can do as a hodler is intraday cryptocurrency trading. The whole idea of ​​bitcoin hodling is that anyone can do it,” according to Exodus.

As OBOZREVATEL has already reported, the holding is one of the methods of passive income on cryptocurrency. The same strategies include the already mentioned cryptolending, as well as staking and ETFs.

We have only verified information in the Obozrevatel Telegram channel. Don’t fall for fakes!

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