1. I select quality cryptocurrencies based on fundamental analysis.
2. I will set an investment plan and goals.
3. I will buy cryptocurrencies (ideally gradually).
4. Regardless of fluctuations, I hold long-term.
5. I regularly check the development of projects and security.
6. I plan to realize profits according to predefined rules.
1. Selection of cryptocurrencies
•I would focus on cryptocurrencies with long-term potential, such as Bitcoin or Ethereum, which have a history of growth and a strong community. •Before buying, I would analyze the fundamentals: the technology of the project, the team, real-world use, adoption, and security.
2. Establishing an investment plan
•I would decide how much of my portfolio I want to dedicate to cryptocurrencies and invest only money that I can afford to 'lock up' for a longer period. •I would set goals – for example, to hold until a certain price target or time horizon (e.g., 4 years, one halving cycle).
3. Buying and diversification
•I would buy cryptocurrencies either in a lump sum or gradually (so-called dollar-cost averaging) to reduce the risk of poor timing. •I would diversify among several projects to reduce the risk associated with a specific cryptocurrency.
4. Long-term holding (HODL)
•After purchase, I would hold cryptocurrencies regardless of short-term market fluctuations, even during significant drops or rises. •I would avoid panic selling during downturns and not let emotions influence me – the key is patience and faith in long-term growth.
5. Regular checks and security
•I would regularly check the development of projects and possibly adjust the portfolio if the fundamental situation of the selected cryptocurrency changed. •I pay attention to the safe storage of cryptocurrencies – ideally in a hardware wallet, off the exchange.
6. Realizing profits
•I would set in advance when and how I will realize profits – for example, selling part of the portfolio upon reaching a certain price or regularly withdrawing a percentage of profits. •It is important to have a plan, as holding 'forever' does not make sense – the goal is to appreciate the investment and possibly enjoy or reinvest the profit.
Advantages of the HODL strategy in crypto:
•Utilizing long-term market growth and the compound effect.
•Lower transaction costs and less stress from frequent trading.
•Protection against poor decisions in panic during market downturns.
Risks:
•Cryptocurrencies are extremely volatile – the price can drop significantly for several years.
•The risk of losing keys or hacking if security is not ensured.
•The possibility that selected projects may fail or lose value.
