Thread by @thegreatola

Is #HODLing better than trading #cryptocurrency ? 🧵

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First, HODL is a purposeful misspelling of “hold” that implies holding on for dear life through crypto’s ups and downs. It’s a very good advice, but very hard to pull off through 40-80% price corrections.

HOLDing through 40% – 80% corrections takes a level of grit most people don’t have… and 40% – 80% corrections are common in crypto.

It’s like what you’re seeing right now in the market. Some will sell at this point bcos they can’t stand the loss

HODL simply means to buy & hold #cryptocurrency. For someone that’s new into #cryptocurrency, HODLing is much a better strategy than trading bcos of the risk. Just buy & hold it till price goes up and you can sell. This strategy can also be hard for newbies to execute. Why ??

1HODLers tend to HODL to the top and then back down again (i.e. they tend not to take profits). Always take your profits

2. Most people aren’t great traders. Especially when it comes to the insanely difficult to navigate and volatile cryptocurrency market. So how do you win ?

Always have an exit plan when you’re HODLing. Set a target to yourself when you want to sell or take partials, and have some stable coins to buy the dips. You can also mix both strategy so you win both sides of the market (bull & bear).

You can pretty much develop your own strategy too, what works for me might not work for you and vice versa.

Just make sure you’re not giving the market free money.

the main reason HODL is good for new traders is that it helps to keep them from panic selling at a low price and keeps them from getting itchy fingers and taking profits before a bull run.

It can also be dangerous if you HODLs into a bear market only to give into the pressure to sell eventually anyways. To avoid being in loss, when price are lower compared to the new highs, increase your positions. Then, take partial profits when you see some really good profits &

...Don’t take all your profits.

HODLing doesn’t expose you to so much risk unlike day trading. For a new investor this strategy is best for you

HODL is simple. You buy the coins, you put them in your wallet, and then you do nothing.

If you are going to trade, start of with small trades, use like 1% of your portfolio per trade and no more than a few trades a week. use stops, and start learning about technical analysis, this will give you better understanding of the market structure & how to predict the trends

Trading is harder and has more risk than HODLing, but it’ll set you on a path where you will be conditioning yourself to do what you’ll need to do eventually, that is “buy and sell at opportune times to realize profits over time.”

there are different styles of trading, and not every trader has to be a day trader. If you trade without having a proper experience, you’re a taking a big risk & you’ll get rekt soon. One or two trades a week is a good pace for a new trader.

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