In the world of cryptocurrencies, large fluctuations can be intimidating for beginners, but there is one strategy that has proven effective in the long run: HODLing.
What is HODLing?
The term HODL started as a misspelling of the word 'HOLD', and over time became a motto for the crypto community. The idea is simply to buy a strong coin like Bitcoin and hold it for a long time, without being affected by daily fluctuations.
Why is it suitable for beginners?
1. Simplicity of execution: You don’t need to monitor the market all day or analyze charts.
2. Reduce stress and losses: Instead of selling due to fear or greed, you commit to a long-term plan.
3. Benefit from overall growth: In the long term, major cryptocurrencies like Bitcoin often experience significant growth.
Does this mean buying and just waiting?
Not exactly. You need to:
Choose a suitable entry time (preferably during corrections).
Choose a strong and reliable currency like Bitcoin (BTC).
Knowing when to take profits, usually after a significant rise or at specific targets.
When is HODLing not suitable for you?
If you are looking for quick profits.
If you don't have the patience to wait for results.
If you invested money you cannot afford to temporarily lose.
A final word
The HODL strategy does not mean completely ignoring the market, but rather trusting your decisions and investing rationally and patiently. It is an excellent step for a smart start in the world of cryptocurrencies.