#HODLTradingStrategy ✅ #HODLTradingStrategy simply means the "long-term holding" strategy (HODL = Hold On for Dear Life) in the trading world, especially in cryptocurrencies.
It is completely different from day trading or short-term trading.
Here's a quick overview of this strategy:
🚀 What does HODL mean?
A term that originated from a misspelling of the word "HOLD" in a Bitcoin forum in 2013.
It has become a popular word indicating the holding of coins or assets for a long time without selling them despite market fluctuations.
📊 Principles of the HODL strategy: ✅ Buy the asset you believe in (like BTC, ETH) after good fundamental research.
✅ Hold it for years (usually 3-5 years or more).
✅ Ignore daily, weekly, and even monthly fluctuations.
✅ Do not be affected by fear (FUD) or greed (FOMO).
💡 When to use HODL?
When you believe that the assets will rise in the long term due to technological developments or widespread acceptance.
For example, BTC investors who bought in 2013-2015 and held until today.
🛡️ Advantages of HODL:
You avoid emotions and random selling decisions due to market fluctuations.
Less effort in daily analysis and monitoring.
You may benefit from huge returns in the long run.
⚠️ Disadvantages of HODL:
You may go through very long periods of floating losses (drawdown).
If you choose the wrong asset, it may drop to levels that are hard to recover from.
There is no protection unless you have an exit plan or levels, etc.).