Holding currencies
It can be said that holding cryptocurrencies (HODLing) can be smart or foolish based on the following circumstances:
✅ When it is smart:
If you believe in the technology (like blockchain) and the project behind the currency, often holding it for years can be a smart decision.
Just like what happened to those who held Bitcoin since 2012 or 2015.
The market is in a temporary downturn:
If you are in a bear market and the fundamentals are strong, selling may be a loss, while waiting may lead to future profits.
Diversification:
If you don't keep all your money in one currency, and your distribution is good (Bitcoin + Ethereum + other strong coins).
❌ When it is foolish:
If you hold a currency without studying:
There are thousands of fraudulent or worthless currencies. If you buy based on rumors or advertisements only, you are taking a risk.
When you lose control of your emotions:
Holding onto a currency that loses 90% of its value and thinking it will recover just because you don't want to acknowledge the loss.
Poor timing of entry:
If you bought at the market peak based on hype and did not set an exit plan.
💡 Tip:
Cryptocurrencies are a high-risk investment tool. Only invest what you can afford to lose.
Combine technical and fundamental analysis and monitor market developments.
Always think of a plan: when to buy, when to sell, and what the profit or loss ratio is.
