#HODLTradingStrategy Is holding onto a cryptocurrency during a downturn and not selling the right decision?
- Answer:
In the world of cryptocurrencies, many advocate for "HODL," meaning to hold onto the currency and not sell it even during major crashes. But is this decision always correct? The answer: Not always!
Long-term holding can be beneficial for strong currencies like Bitcoin or Ethereum, especially if the project has a promising future and real use. However, holding onto a weak or fraudulent currency during a downturn can lead to total loss, as some currencies never recover.
🔹 When is HODL a smart decision?
If the currency is from a major and established project.
If the downturn is due to general market conditions (and not because of the currency's failure itself).
If you currently do not need liquidity.
🔸 And when is it a grave mistake?
If the currency is unknown or its project is questionable.
If indicators confirm that the currency is on the path to extinction.
If the downturn persists for months without signs of recovery.
Conclusion:
Holding during a downturn is not a golden rule for everyone; it requires a logical evaluation of the project and an intelligent reading of the market situation.