HODLing is a popular method of purchasing cryptocurrency since it is straightforward and has been there from the beginning. Today, cryptocurrency users are soaring to all-time highs. However, not all users know the specifics of this new digital economy and how it operates.
The worldwide spread and adoption of cryptocurrencies have increased the availability of services and information. Navigating this sea of applications, wallets, tactics, and market-mixed data might be difficult for some consumers and may turn them away. However, if consumers can recognize accurate information and avoid dubious websites and frauds, there is plenty to gain in this new digital economy. HODL is the most widely used crypto strategy for stable and volatile currencies such as Bitcoin, Ethereum, and Litecoin. All of these currencies can be bought through Altalix’s secure payment gateway. The phrase HODL, which is popular among cryptocurrency traders, is thought to have originated as a typo of the word “HOLD.” The word immediately gained popularity in trade forums and became ingrained. According to others, the phrase also means “Hold on for dear life.” In any case, the word refers to a basic approach. Always purchase and never sell cryptocurrency, regardless of whether the price rises or falls.
Believe In The Long Game Like The Others?
Even when cryptocurrency’s price falls, it does not seem to be a prudent trading strategy to constantly purchase and never sell. HODLing, on the other hand, is a unique trading strategy. Why? Because customers are not purchasing to resell in the near term when margin gains are low, and dangers are great. They are buying to save and generate long-term returns. If someone examines a volatile cryptocurrency such as Bitcoin, they will see that the price fluctuates drastically over one or three months. However, if people examine the history chart of Bitcoin from its inception, they will notice one thing: it has constantly been increasing in value. Short-term trading strategies are aimed at profiting from brief price fluctuations that are dangerous due to cryptos’ unpredictability. While long-term trading entails risk, traders cannot ignore the rising trend. If somebody purchased 500 USD worth of Bitcoin in 2011, they would now have between more than four million dollars (At time of writing). However, 11 years is a lengthy period to keep onto crypto. HODL strategies often last longer than a year, so be prepared to hold and purchase on dips.
Times Have Changed The HODL
The days of becoming a Bitcoin billionaire have passed. However, HODL remains an option for those looking for a long term approach. It all boils down to one fundamental question that you must answer for yourself. Do you trust the long-term viability of cryptocurrencies? The strategy does require nerves of steel not to sell Bitcoins during a market crisis. Do your own research and make an informed decision.