KNOWING WHEN TO HODL
Deciding when to hold or sell cryptocurrencies is a personal choice, and investors should do their research and due diligence before making those decisions. Some investors choose to adopt a HODL strategy across the board, meaning they buy cryptocurrencies to add to their portfolio and don’t plan to sell them for many months or years.
While this is a good move for people who believe in the long-term value of cryptocurrencies, it’s unclear what the outcome might be. The future of the industry is yet to be seen: hacks, bad news, and other world events can affect crypto prices (as they can in any market sector).
Some choose to HODL certain coins, but actively trade other coins that they don’t believe have as much potential for growth. Some HODL coins tend to be more established and stable, although HODLing a coin with a lower market cap could result in higher profits if it grows significantly over time.
The HODL strategy may be a good choice for investors who don’t want to spend a lot of time on their cryptocurrency portfolio or are new to the technical analysis of crypto investing.
No matter what sector you’re investing in, it’s always smart to build a diversified portfolio, so that if one market segment drops, others might be doing well and help to mitigate losses elsewhere. There are thousands of different cryptocurrencies available to invest in to build a diversified portfolio.
Don’t let FOMO trick you into HODLing your coins.
Fear Of Missing Out is a pain. We all have had currencies that we sold, only to see the price spike the next day. It’s part of the game, and that’s why most people tend to want to HODL when they really should just enjoy the lower profits they could get.
In other words, don’t get greedy; you could lose everything much faster than you expected.
Much of when to HODL or sell depends on how scared you get — and how much cash you need.
If you notice price dipping significantly and banked all your investment money, you probably need to read up on new investing strategies. However, there’s still a way to recover things and let your cryptocoins climb up a bit.
Cryptocurrency is volatile, enormously so. It’s enough to make many people panic-sell when they shouldn’t. This can lead to a lot of potential losses as currency could jump back.
