Why Is It Difficult To HODL Crypto?
You buy crypto and hold it. It can be your long-term strategy. HODLing is supposed to be easy. There is no complication in the system. Then why is it difficult to HODL cryptocurrency?
If it is so cold outside, you may not feel how cold it is unless you go outside. Staying at home, it is easy to see anything, but when you go outside, you feel the cold. You realize how tough it is being outside.
Likewise, it seems easy to buy, and HODL crypto. But when you buy crypto and see the wild swing in the crypto market, you feel every move. You are happy when the price goes up which shows a potential gain. On the other hand, you may get worried when the price crashes and how much you already lose due to the crash.
If you do not know where you are investing and why you are investing, you cannot stick to your decision. Lack of understanding is something that can make HODL difficult. Investment is not magic, you throw your money and you become rich. You have to understand the asset or specific crypto where you invest your hard-earned money.
People can predict, but no one can tell you exactly when and how the crypto market will react and makes it move. The stock market has a long history. You will not get a long history in crypto like the stock market. Things are evolving and changing in crypto consistently.
If you make an impulsive decision to buy any crypto, probably you do not have a long-term plan to HODL. You need to have a plan to hold crypto for the long term before making investments. Some cryptos are hot now, so you make an investment there.
When the hype loses its momentum, the price can fall drastically. You can feel the fear and end up selling your crypto at a loss. Due to FOMO, people buy crypto at the top and sell crypto at the bottom.
Sometimes when people see the crypto price goes up, they do not want to lose the potential gain. That triggers them to sell their crypto early and lose the whole market momentum and gain.
There are many cryptos that will not make it to the next bull run. In case you hold any of those cryptos, you will end up losing everything. Having a negative experience can make HODL difficult.
So what do you think about why people find it difficult to HODL crypto? Please feel free to leave your comments. Thank you for reading this post. That's it for now. I'll be back with another post.
That's why its call crypto! I wish someday we'll be able to hodl it