#HODLTradingStrategy

1. Defining goals and time horizon

• Long-term growth vs. short-term gains

Consider whether you plan to hold assets for many years (e.g., 3–5+) or rather cyclically realize some profits.

• Capital allocation

Determine what percentage of your total investment portfolio you want to allocate to cryptocurrencies.

2. Choosing high-reliability assets

• Fundamentals first

Focus on projects with:

• Practical application and real adoption (e.g., leading smart-contract platforms)

• An active developer community

• Transparent tokenomics

• Diversification

Instead of many small projects, focus on a smaller basket (3–7) of well-recognized assets.

3. Optimal entry points

• Dollar-cost averaging (DCA)

Spread your planned investment across fixed tranches (e.g., weekly or monthly purchases).

• Buy thresholds

You can set additional purchase points (e.g., buy more when BTC drops ≥10% from the last purchase).

4. Rebalancing and profit-taking rules

• Periodic adjustment

Quarterly or biannually, restore asset allocation to target weights.

• Profit realization

When the value of an asset doubles, consider selling a small portion (e.g., 10–20%) to lock in profits while retaining the majority of the position.

5. Risk management and position sizing

• Acceptable maximum drawdown

Invest only as much as you are willing to see decrease by 50–80% in a bear market cycle.

• Stop-loss (optional)

For more conservative HODLers, a loose stop-loss (e.g., -30% from the purchase price) can protect against total capital loss.

6. Secure storage and psychological discipline

• Cold storage

Store long-term assets in hardware wallets or multisig.

• Avoid emotional decisions

Turn off price alerts for the main HODL wallet to avoid succumbing to panic or FOMO.