Live by HODL… Die by HODL?
Up until this point, everyone who HODLed (for those of you who don’t know, HODLing basically means being a die-hard buy and hold investor, an investor willing to #HODL during periods of massive price turbulence) bitcoin and cryptocurrencies did very well… remarkably well, even!
However, today’s One Minute Economics animation about HODLing bitcoin and crypto tries to make it clear that there are many misconceptions in the world of crypto at this point.
HODLing is one, thinking Dollar Cost Averaging is the best thing ever (hint: it isn’t) is another and the list could go on and on.
In a space as booming as the crypto world, you can make money even if your strategy is sub-optimal and many people have been able to do just that. While there’s nothing inherently wrong with this state of affairs, we do need to understand this can not continue indefinitely.
Perhaps, in 2019 and beyond, it’s time to add a little bit of money management wisdom to the mix and… of course, incorporate this into your existing cryptocurrency strategy.
Do you love HODLing? No problem at all, just make sure it isn’t the only tool in your arsenal.
Please remember that past performance is not indicative of future results (investing 101) and understand that as the crypto space matures, the market might not be as forgiving as it has been during the previous market cycles :)
