Those of you who are involved in the crypto market certainly know very well the speed of this market movement occurs in minutes or even seconds. It is natural that many traders often panic suddenly because of the increase or decrease in coin prices. Hodl is a strategy that you can take when the market is pressing and you are confused about determining the best move.
What is Hodl?
What is Hodl? The world of stocks, capital market investments, and cryptocurrencies is a huge market that moves very, very fast. Such a world automatically also demands decisions made quickly.
In a sense, if you are interested in becoming a trader, you must learn to analyze quickly. You must learn to read situations, opportunities, possible predictions of what will happen in the next second.
There’s no time for the term “think about it.” Because in the next second, everything will immediately change. You could miss out on the biggest profit opportunity or escape losses worth millions.
Hodl is one of the strategies in dealing with the speed situation of the crypto market. Hodl or should be written hold is a strategy to survive or maintain assets while market conditions are very unstable.
Hodl is a term that first appeared in December 2013. At that time the price of Bitcoin rose dramatically from just a few cents to USD $1,100.
However, entering December 18, 2013, the price of Bitcoin fell by 39%. From USD $716 to USD $438. Crypto market conditions are immediately boisterous. The price decline was allegedly due to the release of the Chinese government’s response to the rejection of Bitcoin.
An account in the name of GameKyuubi then responded to the chaotic situation. He uploaded a message with his account, “I AM HODLING”. He meant to write “I AM HOLDING”. Perhaps the urgency of the situation made him panic and make a typo.
At that time the decline in the price of Bitcoin made many traders panic and decided to sell their assets. The GameKyuubi account is trying to convey a message for people to “hold on”, keep their assets because selling them when the market falls will only enrich the traders.
Before long, this term became widespread. And so the word hodl became a popular keyword in the cryptocurrency world.
The term hodl is then associated with a certain abbreviation of a sentence. Crypto market activists know Hodl stands for hold on for dear life. The basic meaning of the sentence is no different from the meaning of the term hodl as hold.
The popularity of this term makes Quartz (one of the crypto currency providers) list it as one of the most important slang terms in cryptocurrency activity. The term is defined as staying invested in bitcoin and not giving up in the face of falling prices.
Of course, no one suspected that the term hodl was a term born from a typo event. In later developments, this term is not only used in the Bitcoin market but also cryptocurrencies in general.
Implementation of the Hodl Strategy
Hodl is a strategy that you can choose if you rely on long-term investment fluctuations. That is, hodl is the thing that is applied to those who do not like to be tempted by short-term price fluctuations.
As mentioned above. The crypto market goes by very fast. Beginner traders usually do not build investments with careful consideration of capital.
They are easily tempted by profit offers in coin buying and selling transactions that take place quickly. They do not have a clear predictive picture of the fate of their asset coins in the future. Finally, when the price slumps, these novice traders fall victim to their own decisions.
Hodl strategists do not base their investments on short-term speculation. They are aware that the crypto market is moving fast therefore no matter what happens now, it will change soon.
This thought seems simple but in practice it really requires maturity and calm. Because it is not uncommon for market news to tempt you to sell assets with the lure of profit. Or an increase in the price of a certain coin makes you want to buy or sell.
Even though it’s possible it’s just a Pump and Dump game. Or because one or two things happened in the world economic market and made crypto assets shift.
Hodl is the answer. You don’t have to be tempted by the many narrow possibilities and opportunities that appear on your crypto market screen. Hodl!
Keep your assets if you’re not really interested in short-term fluctuating positions.
Hodl is Medicine of FOMO and FUD
Did you know there are two diseases that are most often experienced by novice traders? The crypto community calls it FOMO and FUD.
FOMO is the disease of fear of being left behind. This disease allows players to make high purchases for crypto assets that they are not really familiar with. While FUD is fear, uncertainty and doubt that causes players to set low selling prices for their assets.
These two diseases can be overcome if you apply the HDL strategy. No need to fear that you will be left behind or lose for no reason. The crypto market is a place for people who dare to make decisions but also conduct analysis with a clear head.
A beginner who knows the value of his assets is going down will easily make a cut loss, which is to sell all assets with the aim of minimizing total losses. In fact, many possibilities can happen in the crypto market.
As in the case of Bitcoin in 2013. Those who hodl finally get a win because the price of Bitcoin is rising again.
Studying the history of Bitcoin fluctuations to this day, you don’t have to worry about losing. Bitcoin does continue to move because things outside the crypto market, such as the global pandemic, also affect Bitcoin’s decline. But you can rest easy because the long-term scale of the benefits of this asset investment remains above 100%.
Hodl is the safest and most sensible move for FOMO, FUD, or other emotional temptations. Because people who implement hodl believe that cryptocurrency is the currency of the future.
What is happening today is considered the instability of the world in accepting cryptocurrency as the currency of the future.
To successfully implement a hodl strategy is certainly not the same as sitting still doing nothing. The following are things you can do as long as you hold onto your crypto assets and watch out for the best opportunities to come:
- Learn new things about cryptocurrencies. This will be useful to increase your data analysis skills.
- Read the latest news related to crypto market and global economic market.
- Maintain confidence and confidence that you are speculating for the long term.
- Have a long term vision. Change your mindset in entering the crypto market. Bitcoin or altcoin is a new money system that is used to replace the physical money system. So Bitcoin or altcoins are not basically a get-rich-quick tool. It is therefore healthier to make long-term storage than to participate in short-term price fluctuations. You can own Bitcoin and wait for this potential money system to reach its destination.
It is in this number of advantages that crypto assets can be an alternative investment. But what you need to remember is to do an analysis of financial health before starting to jump into the crypto market. Thus, you can play with a stable and healthy psychological condition. Not consumed by market diseases that can actually bring losses that you never want.