Trading vs HODLing: The 101
It’s a pretty simple comparison, but why do people prefer to do one more than the other?
To make money trading you need to know what you are doing.
To HODL you don’t need to know what you are doing.
If you simply just buy and HODL, you have nothing to worry about because the price could go up or down but if you don’t plan to sell it then it shouldn’t matter what the price is at.
Life is easier when you HODL.
But why do people choose not to HODL and Trade?
Couple factors:
- Professional Traders. These are the ones who know what they are doing following candlesticks, volume, etc etc. But even the professional are wrong a lot of times and become unprofitable.
- Over-investing and Fear. In crypto, price is very volatile, so when price goes down rapidly, this causes panic selling for fear you will lose it all, which in turn then makes the price go down even further — except when you sold the bottom which only to see the price move rapidly upwards leaving you feel even more sick.
- Following Traders. There are a lot of novice traders in crypto that think they can follow a trader on Twitter and copy trade them. But since they have no idea what they are doing they buy at the wrong time only to sell at the wrong time.
- Chasing Green Candles. People will be invested in one project and see it go red while another project is ripping a green dildo candle faster than Zeus’ lightning bolt that doesn’t seem like it will ever come down. So people will sell the project going down to chase a quick pump. However, with this strategy they will most likely buy the local top of this green candle only to see price go down just as fast. Leaving you with nothing but dust.
- Thinking you are smarter than the market. No one is smarter than the market.
Those are just some examples.
People will try and find the most flashy project and jump there while leaving the one they believed in because it wasn’t progressing fast enough.
However, this is where the HODL meme comes in.
We are a community that is growing with the belief to just HODL. We don’t care if the price goes up or down, we just remain level headed and keep HODLing — because we follow the ticker HODL goddammit !
Crypto is hard. Investing is hard. Trying to outsmart these is a losing battle. The winning strategy always has been DCAing (dollar cost averaging) and HODLing.
The great Warren Buffet has said, if you invest in a company you shouldn’t think about selling it for 10 years.
Yeah, I’ll take that advice from one of the greatest investment minds of all time.
It’s simple. You just buy and HODL. You don’t worry about price movement in the short term. It’s a long term game. Everyone thinks it’s a short term game which is why the majority gets wrecked.
IT’S TIME TO STAND TALL AND HODL.
Do you have what it takes to do it?
Come check us out and see: https://t.me/hodltokensol
