Imagine, that you are on the plane and you have a choice – go left, to the cockpit or to the right, to the salon. There are many buttons and levers in the cockpit, control over the situation. But you need to learn aerobatics for many years.. Comfortable seats in the cabin, porthole, table for food or magazine. In case of a successful flight, the pilot and passengers will be satisfied. If the flight is unsuccessful, then everyone will suffer without exception. So where do you turn? Left? Then you trader. Rightwards? Then you're a hodler.
The terms "hold" and "hodler" are used in the world of cryptocurrencies. What do they mean??
«Hold» – new term, meaning investing in digital coins, avoiding trading on short-term value movements, as opposed to trading.
Hodle – it's the word "hold", which means "store" or "keep".
One of the not quite sober users of the official bitcoin forum published a post with the topic "I am hodling", trying to say, that he intends to save coins, despite the short-term depreciation. The post became an internet meme, and the typoed word "hold" (Keep) later began to be used as an abbreviation of the phrase "hold on for dear life" (to hold on to the last forces), meaning a call not to sell cryptocurrency during a fall in value and wait, until it starts to grow again.
We are talking about long-term storage of coins, despite what is happening with their course. In this way, hodler – it's that person, who is ready to keep hiscoins and tokens for many years and does not plan to sell them in the near future, until he makes a profit. He doesn't sell coins., even if there is a collapse in the market.
Hodlers don't make predictions. For hodling you do not need special skills – only calmness and patience. Hodlers are the main support group for the collapse of the value of cryptocurrencies on 25% per day or on 50% per month. Moreover, on such collapses they only make purchases. In other words, hodlers are the basis of the value of cryptocurrency.
A funny illustration of the hodling method is the following example.: in 2008 An experiment was conducted with a circus monkey named Lukeria.. Lukerye was given thirty cubes with the names of Russian companies. She chose eight cubes to invest in.. Experimenters mentally invested a million rubles in these shares. TO 2009 year, the monkey's portfolio has risen in price by 194%. At the same time, the exchange index rose by 107%. During the hodling, Lukeria earned hypothetical 1.94 million rubles.
Everyone knows the story of buying two pizzas for 10 thousands of bitcoins. At today's rate, it's about 5 million $. One of the sites, monitoring the rate of bitcoin, even cites in his statistics "pizza rate" – you can always find out, how much is the failure of this grief-buyer estimated today?.
Similar cases, there are a lot of impatience-related holders. There were those, who in 2017 year bought Bitcoin on 20 000 $. The subsequent fall in value to 3 000 $ caused many hysterics, leading alarmists to sell Bitcoin and, respectively, loss of money. The same, who coolly looked at such a terrible drawdown, were able to sell Bitcoin in 2020 by 60 000 $ and earn. There are among them and those, who still holds coins, being confident of the potential for growth in the price of Bitcoin.
These and many other examples give wise investors to understand in any drawdown of the price do not be afraid, panic. It is worth waiting - and everything will return to normal and it will be possible not only to return your money, and earn. The one, who knows how to wait, in the end wins.
Tips for hodlers:
- The secret of the hodlers' profit – in the ability to wait. Forget the market, do not pay attention to price fluctuations.
- Reduce news noise, causing anxiety and panic.
- Buy cryptocurrency with free money
- Invest in cryptocurrency feasible amounts, so as not to worry about possible losses.
The "hodle" strategy helps to protect yourself from emotions in the crypto market and increases the chances of profit. Perhaps themes, who believes in the future potential of cryptocurrency, it is necessary not to look for data, which would help predict intraday price movements of acoin or token, and just hold the asset against all odds. No one lost, until he sold.