🔻Is "HODLing" during a downturn a wise decision? Here's the answer in brief!
In the world of cryptocurrencies, many advocate for "HODL", meaning holding onto your coins and not selling even during significant crashes. But is this decision always right? The answer: not always!
Long-term holding can be beneficial for strong coins like Bitcoin or Ethereum, especially if the project has a future and real use. However, holding onto a weak or fake coin during a downturn might lead to complete loss, as some coins never recover.
🔹 When is HODLing a smart decision?
If the coin is from major and established projects.
If the downturn is due to general market conditions (and not because of the coin's own failure).
If you do not currently need liquidity.
🔸 When is it a grave mistake?
If the coin is unknown or its project is dubious.
If indicators confirm that the coin is on its way to extinction.
If the downturn continues for months without signs of recovery.
📌 In summary:
Holding during a downturn is not a golden rule for everyone; it requires a logical assessment of the project and an astute reading of the market condition.
