Hodl or Hodler means to hold depending on your philosophies with Bitcoin of holding the coins rather than using them on daily transactions so that it can carry on going up in value, then you are a hodler. A lot of people just prefer hodling crypto currencies for the long run other than using them to transact. Some think it is better off just holding than playing the trading game.
There is often a misconception about how the spelling of ‘hold’ and hodl’ as to how they could mean the same thing but one seems to be spelt wrongly. HODL simply stands for ‘hold on for dear life’ it is classified a training strategy. A lot of institutions hodl Bitcoin while some just do Ethereum.
There are three strategies when trading in crypto currencies and hodl, you trade and then you stake. The idea of hodl is, when you have a specific amount of Bitcoin is to “hold on for dear life’ which means you would not be selling the coins even when the value depreciates. You can learn more about Hodl definition.
The hodl strategy does not only apply when it is going down but also when it is going up. Even when the price of the coins is going for as high $10,000 to $30,000 the idea of hodl comes in with not selling and “holding on for dear life” because you have foreseen a better thing hanging in the future. Trading is simply buying and selling actively. The trading strategy has not exactly worked a lot for some people seeing that they have lost a lot to that but if done right, you can make quite a lot doing that. Staking is more of investing to get in on the interests that come with, some actually value the staking strategy because it is more efficient and gives this win-win thing to it.
In the world of holding crypto, or something, longer than others, as well as managing risks as markets go up and down it is a good idea to hold on and also to make great use of tools made already available which enables you to earn interests staking. The types of coins to hold on are to be core assets. The idea is selling a little of it, while holding on to the stable coins or currency. In the situation whereby the market is going low and you want to keep 20% of what you have, the best idea would be to stake that 20% and then hold on to the rest of it in stable currency and then the capital can be re-introduced when it is nice. This is a way of hodling while you are still holding in a bit of the asset and not all of it and also thinking long term.
HOW TO HODL CRYPTO
Be prepared for market volatility
One of the most volatile coins or assets in the world is Bitcoin as well as altcoins. When there is volatility the hodlers get the opportunity of big returns. The big price swings in crypto, especially Bitcoin can mentally destabilize; it is often advisable for hodler to be mentally fit for drops and accommodate the loss. Investing in crypto currency is something that risk takers do and are prepared for anything that can or has occurred.
Get or own a hardware wallet
Hardware wallets help safe keep crypto currencies and are almost immune to theft. This is a very great way to have your hodl crypto stored even from hackers.
Have long term thoughts
The idea the behind hodl to invest is to hold the crypto for a long period of time. Most hodlers plan to hold their Bitcoin a little bit longer than four years (a 3-5 year time period), while some keep theirs for more years.
Do not trade (day trade) without skills
Trading is great when you are good at it and when the profits also come in quite high. When it goes wrong losses would obviously be sustained, the one thing to avoid is day trading, except in the situation whereby you have the skills to take on it; do not day trade as taxes are quite high in most countries. Buying Bitcoin is not so hard a task as it is something we can all do; it does not require technical analysis or charts. With little or no experience and skills, day trading can go horribly wrong.
Being involved in the Crypto community
To trade or to do HODLing is a common question often posed but a more rampant idea is that of 98% of traders not making it profitably enough; so much so that it cannot get those full-time earnings. Trading can be very difficult and it requires the natural attitude, confidence, risk taking ability, emotional control and dedication as well as patience. Most people do not possess all these and this successful habits in traders that earn them their profits. Contrary to the sayings of people HODL is not the acronym for “Hold on for dear life.” The acronym actually stands for a reference to a famous post on the BitcoinTalk forums.