This is for Crypto Newbies that wants to know about HODL and pointers on how they can earn in this method.
What is HODL?
Many people who are familiar with cryptocurrency may often hear many experts say "Just HODL your Bitcoin! Your HODL BitcoinCash! Your HODL Etherum!" But, what is HODL anyway?
The definition of HODL is slang in the cryptocurrency community. This term is used to handle cryptocurrency rather than sell it.
HODL is a kind of important slang term in cryptocurrency culture described as a stand to keep investing and not give up in the face of falling prices.
In other words, HODL means a cryptocurrency trading term, which means Hold On for Dear Life. This is a favorite mantra for Bitcoin holders.
The term HODL seems to suggest handling your Bitcoin and do not be careless no matter how high the price.
HODL VS Cut Loss
Cryptocurrency like Bitcoin was first created to be a transaction tool to convert currency. However, now cryptocurrency has become an asset. In fact, many people compare cryptocurrency to a commodity such as precious metals that can be stocked or stacked. That way, it is hoped that one day we will become rich by selling it. It seems to show that when we enter the world of Bitcoin, our wealth is Bitcoin. A trader will enter a buy position when the price starts an increase and a sell position when the downtrend starts. The problem arises when a trader enters a long position, but in reality, the price drops or falls. That is when he is in a dilemma, will he break the loss or stay in the HODL position? For a beginner, this is considered a disadvantage. Therefore, usually, a person will reduce losses to reduce losses. But not for a bitcoiner.
Regardless of the current Bitcoin price, keep handling Bitcoin as hard as you can. Here the term HODL becomes a mantra for holders of Bitcoin or other cryptocurrencies. When the price of Bitcoin falls, one has to be patient. When the price goes up, that is an opportunity to get more.
HODL Strategy Income
Many use the HODL approach. Especially Bitcoiners. As a result, Bitcoin maintains a 100 percent annual return (YTD). Despite the recent decline, Bitcoin has a YTD of 111 percent indicating that “HODLing” could be a profitable strategy. I do not know what other bitcoin experts say or what their Opinion on HODLing is but you should know that the best way to maximize profits on your assets is to keep it handled even with value the prices and do not cut your losses like every newbie will do.
Are you interested in earning cryptocurrency income using the HODL approach? Of course, the advantage is not just HODL it. You should know other techniques, such as:
Technique 1: Learn New Things
The world of cryptocurrency can be said to be something new that has emerged in the last ten years or so. Therefore, you need to be motivated to always learn new things. The science of cryptocurrency is not studied in schools or in the traditional education system. Therefore, not everyone is equipped with an understanding of how money works.
Technique 2: Have High Confidence
You must have high confidence. Moreover, if you decide to become a HODLer. True, the temptation to sell is common. However, here is the challenge. If you do not have high confidence, you will have a hard time surviving the cryptocurrency revolution. For example, when the price of Bitcoin fell in March 2020. The price dropped to US $ 3,200. Many decide to sell at a loss. Even the HODL option can be made if you believe the price will return.
Technique 3: Be patient
Storing Bitcoin for the long term is a tedious strategy for some individuals. That is the right time, honestly, to be careful. Patience in the sense of not buying altcoins pretending to be the next Bitcoin, not having enough skills an investor in cryptocurrency, and of course not selling losses for fear of a dramatic price fall. You may lose and struggle to perform the HODL strategy if you are bored.
Technique 4: Good at Controlling Emotions
The temptation to make a big profit cannot be ignored. However, you must control your emotions. Cryptocurrencies like Bitcoin are strategic investments. All you have to do is control your emotions and wait for the right time to earn.
Technique 5: Have a Long-Term Vision
You must have a long-term vision. The reason is, cryptocurrency is not a tool to get rich quick, but a tool to break free from the fiat money system. So, the easiest strategy is for HODL to buy and store Bitcoin until its potential is fulfilled.
Conclusion
From what you just read, you now know that HODL means slang to bitcoiners. When you are about to dive into this investment, it is a good idea to remember the following. Many say that cryptocurrency is not an investment. Whatever the opinion, you need to trust yourself. Before playing cryptocurrency, you should first pay attention to your personal financial health. Financial condition needs to be evaluated like the body, which requires medical examinations. Are you financially healthy, before spending money on cryptocurrency?