Hodling: the secret in cryptocurrency success
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In less than a decade, the cryptoverse is no longer hype but something from which one could profit. A lot has become a millionaire overnight, and a lot already used it as a means of conveniently transferring value for goods and services. In some countries, it is even legal tender!
As time goes by, people in all walks of life have slowly recognized how beneficial cryptocurrency is, and this has expanded to the point that many cryptocurrency projects are offered and started today that aim to solve real-world problems. These projects are not only revolutionary but could change the way we do things, such as banking.
However, not all have utilized the potential of cryptocurrencies with real-life applications and the potential to have a great deal of value. This is because some traders or hodlers sell their holdings either when they see the market collapse or have already obtained a small profit.
A short search on Twitter and other major social media platforms could lead you to people regretting having sold their assets prematurely. Some have over 1,500 BTC, which was bought at 0.3 USD. Some had billions and billions of Shiba Inu tokens only to regret after selling a few months before its surge. These are the recurring regret stories online, which has led us to conclude that the secret to cryptocurrency success is through hodling.
Also Read: What to do after the presale? Buy and Hodl!
If you don’t need the money at the moment, just hodl it tight
A lot of people has sold their tokens simply because it has already gained in value. However, if it were only hodl a little further, that value would have folded 10x, and even 100x. Contrary to the regret stories we hear online, the success stories have a recurring theme also of either they had forgotten that they bought tokens when it was still cheap or have patiently waited for the token’s market value to surge.
For them, if they really need the money, that’s the only time they will sell. Seasoned traders do this as they already know that hodling tight is the key to growing their money. This was also mentioned by the Binance CEO, Changpeng Zhao, on his tweet, which reads “ If you can’t hold, you won’t be rich”.
Panic selling is the one thing to avoid
Legitimate cryptocurrency projects have their surges and dips; they are normal. One should not worry about short-term market corrections as these will bounce back in a given time. Panic selling is common to neophyte traders as they fear that their token value will diminish, only to find out that it surged later that day. However, for seasoned traders, market dips is an opportunity to buy more token and expand the profit curve.
One of the recurring themes you can see online is that the majority of neophyte traders only incur loss rather than profit. This is because when the market value of their tokens goes down further than their capital, they sell as they have the mindset of preventing further loss. With this practice, they perpetuate the common mistake of trading, buying at ATH, and selling at ATL.
Importance of DYOR
To avoid loss, one should always do their own research about a particular project they intend to put their money in, and a part of that research is when to sell for profit. Before anyone starts trading, one must first understand how trading works, and they should have a working knowledge of how the market operates, rather than wait for the prices to go up or down.
Also Read: On avoiding cryptocurrency scams: Squid Game Token (SQUID)
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