ust as a start for those of you who haven’t noticed already, then “hold” in crypto language is called “hodl”.
Now, for 3 years I have been trying to figure out whether I should HODL or trade cryptocurrencies on their wild volatility. In a world where there is a lot of manipulation going on. The market is not regulated yet, so basically everything is allowed. It is the wild west. Even insider trading, rate manipulation etc.
When I started in 2014 the strategy was to HODL for 5 – 10 years and then if everything went as predicted, I would be able to retire after those years. But I could not resist the volatility in the market and started to sell when I believed Bitcoin was peaking and bought again when I felt it was at a bottom. But because Bitcoin continuously went up and drastically went up with certain events, I basically lost Bitcoins. Well, converted to fiat money I still made a profit, because Bitcoin has increased so much in value. It is still easy to make money then the asset just keeps going up.
I will bet you all, that a lot of early adopters to Bitcoin has faced the same issue a hundredfold higher than I have, because they were able to buy thousands of Bitcoins. It is, in my option, quite difficult to be a good trader. You really need to know your backyard and who you are playing with.
Like this famous guy on twitter who tweeted the following May 16th 2011 :
Almost needless to say, that if he had HODL his 1700 Bitcoin till today, he would have had almost 14 mill. US dollars.
I have to acknowledge, that if I had HODL all my coins, actually all the various coins I have, I would have made a lot more money than I have. I’m not complaining, I’m just acknowledging. That said, I’m getting better at trading my coins and I’m over time increasing my profits from trading. So, my strategy has changed a bit. Firstly, of course I’m diversifying, not putting all my eggs in the same basket. Common sense. Secondly, I’m dividing my coins into a pool which I HODL for number of years and a pool of coins which I’m trading frequently.
So, my message to all of you who are new to the crypto world. Unless you have ambitions in the direction of being a trader, HODL your coins. Don’t try to make quick money. You might be able to make money that way, but you will make more by HODLing. It takes a lot of experience to be a good trader. If you can increase your inventory of coins over time only by trading with coins you already have, you are getting there.