HOLD coin or HODL coin is a term you must have heard when participating in investing in the cryptocurrency market (Crypto), on forums, Facebook groups, Telegram about Bitcoin, Crypto you will often come across. phrases like “should hold coin”, “hodl brothers, don’t sell”, “hold to die”, “should hold or discharge”, ..if you are a newbie, you may be “overwhelmed” by these terms. So what exactly is Hodl? What is Hold Coin? In 2021, which coin should hold the most effective and profitable, safe and potential? This article I Love Bitcoin will share with you some experiences of holding coins.
What is Hodl or Hold coin?
Hodl and Hold – you can immediately see these are 2 different words in word order EASY and OFFER, but in essence they all mean the same thing as “holding“. In the cryptocurrency market Hold coin is understood as holding a certain coin without selling (discharging) even if the market fluctuates or drops in price. Or you can simply understand Hodl coin is a form of long-term investment, different from short-term investment (Trade Coin surfing).
Eg: You can choose one Altcoins well, you feel this coin has great growth potential in the future, you buy some amount of this coin and decide to store it for at least 1, 2 years, until it reaches the expected price to sell, in that 1.2 year period you will not sell even if the price drops, now you are called “Holder” (holder) and your holding of your coin is called Hodl coin.
History of the word HODL
Many people find it strange that the community uses the word Hodl instead Hold, because in terms of meaning, Hold is literally “holding the middle”, and Hodl is a word “written incorrectly”. The reason that the community used this word “wrong” is because a nickname named “Game Kyuubi” on the Bitcointalk forum posted an article with the title “I AM HODLING” on December 18, 2013.
By the time this guy’s post was published, it was also time Bitcoin price There was a strong fluctuation when it dropped from 1,130 USD to more than 500 USD, the community was very confused at that time, when Game Kyuubi posted a forum to cheer up with an article with messy content, typos.
The content of the article is briefly translated as follows:
BTC plummeted, why am I still HODL? Simply because I am a bad trader, and I know I am a bad trader. If you are good, just sell at the top and buy at the bottom to earn millions of dollars. Meanwhile, the weak people are GOOD THE PRICE IS SO MUCH DOWN, I SELL EVERYTHING (BITCOIN) HERE, and then they go GOOD I was wrong when being bought cheap goods by INTELLIGENT people who know WHAT I NEED. . I am not one of those groups. Full of articles calling for YOU to SELL (BITCOIN) OUT. LONG LONG I’M SELLING. I ONLY SELL BEFORE EVERYONE SELLS AND BUY NOW BEFORE ANYONE BUYS BUT NOT EVERYONE CAN DO IT. You only sell when the market is falling if you are a regular trader or a delusional fool. In a zero-sum game, the trader only gets your money when you sell.
The misspelled title plus the humorous content calling for enthusiasm that this guy wrote was quickly responded to by the community. Many people unanimously shouted “HODL“, from which the concept of “HODL” was born.
What is the difference between Hodl coin and Trade coin?
“Trade coin“Hay is also known as”surf“, is a form of short-term investment, buying when prices are low and selling when prices are high for a short period of time (maybe days, a few hours and even minutes). Coin trading is done by the “Trader“, to win in trade coins requires traders to have knowledge of technical analysis, read charts, understand the market and especially have a strong psychology, in general, Trade coin is quite difficult for newcomers.
Meanwhile, Hold coin does not require the Holder you must know technical analysis, read charts, ..you just need to have basic knowledge of the market, have experience in choosing good coins based on evaluation criteria, then buy and hold long-term. , hope to add value in the future.
Hodl coin will be suitable for those who do not have much time, want to have an additional source of income from coin investment. To become a Holder is very simple, you just need to have basic knowledge of cryptocurrencies (see article What is Bitcoin? for a better overview), know how create coin wallet, choose a coin that you think is potential and then buy it, transfer it to your wallet and hold until the price reaches your expectation, then sell it for a profit. The risk level of Hodl coin is lower than that of trade coin.
As for Trade coin, it has been recognized by the community as a “profession”, which means you will have to spend a lot of time to learn, learn, practice and gain experience, from which you can hope to earn money from trading coins. . Trade is a difficult job, if you do not have enough patience, you cannot follow this profession, most newcomers to trade coins will lose, the risk of trade coin will be higher than Hold coin. See more articles below to understand more about trading coins:
Which Hold Coin is Effective in 2021?
Currently on the market there are about 3,000 different coins and tokens, in the midst of such a coin forest, which coin should be held effectively? This is also the question of many investors when participating in the cryptocurrency market. It is not safe to hold Top coin (big coins like BTC, ETH, XRP ..) is safe, it is good, nor is it to hold junk coin, small cap coin is not safe, the problem is not only with coins Whether that is good or not depends partly on when you buy it.
If you join the market in the middle of 2017, almost every coin you hold will be profitable, because at that time the market was uptrend, the price of Bitcoin peaked at $20,000, leading to a strong increase in the entire market, but by the end of 2018 came the end of 2018. Now, holding any coin will lose because of the downtrend market, no matter how good the coin is, it will fall. Therefore, in addition to choosing a good and potential coin, you must know the right time to buy, besides, you must have a reasonable holding strategy, know when to buy, when to sell and buy again. Enter to hold. Here I will share some effective coin holding experience.
Instructions on how to effectively hold coins to bring the most optimal profits
1. Select coin to Hold
This part I can divide into 4 types of coin selection to Hold are:
- A – Coins with the most influence on the market: Bitcoin (BTC), Ethereum (ETH), Ripple (XRP)
- REMOVE – Top 1 coin group (mining coin) with great support from hardware manufacturers, mining factories.
- OLD – Group of coins with potential, or superior technology that have been released and circulated on exchanges.
- EASY – Group ICO coin with long-term projects, clear vision, strategy and feasibility.
2. Choose the time of Hodl coin
Time for long-term coin holding all three groups A, B, C including 02 time points:
- 1. In a long-term and long-term downtrend.
- 2. When the market trend turns bullish.
Thus, the most effective holding time is the period when the market starts from freezing to warming up and bursting. Basically you don’t need to hold early, when the market starts to warm up on a large scale, it’s time to buy.
For example, now will not be the time to hold, you should not try to find a hold. When it stops hot, it will turn cold, when it starts to warm again, it will be the safest time to buy. Because if you try to buy when the market is falling, you will most likely end up buying at a relatively high price and quickly get bored as it continues to fall.
For group D, you can buy right after the ICO. (Update the latest ICO projects here).
3. Coin Hold Strategy
With coin holding strategy Then we can divide into 3 main strategies as follows:
A. Hold to target then sell
For example buy BTC at $3,500 and only sell when BTC reaches $20,000, this is buy and let sell only at the desired price. This is the most basic and least effective hold. Assuming BTC goes to $19,800 and turns around then you might have to wait another year (Illustrated).
B. Flexible coin holding
This is how to hold coins effectively and the most optimal. The key of this way of holding is to focus on the number of coins, for example, Hold ETH only makes the most ETH, Hold XRP seeks to increase the maximum number of XRP and sell at the time that feels right. Let’s give an example to make this hold better:
At the time ETH is priced at $200, you buy 10 ETH. When the price goes up to $300 you will sell these 10 ETH for $3,000, then use that $3,000 to buy ETH at $250. This process keeps repeating so that your ETH keeps increasing over time.
The key point to remember is that you are holding, not trading, before determining to sell ETH for $ 300 you must determine a price that it will definitely return, and lower than the price you sell. That is, suppose the price is $1000, but if you can’t determine if it will drop to $900, do not sell, but if the price is $600 but you determine the price will drop to $500, you can sell.
Remember to only sell when you can buy back at a better location. In case you sell and the price goes up (due to a low level), you will immediately buy it back, even at a higher price. Remember that you are holding, not trading, at all times to make sure your coins do not decrease. To limit this, please limit buying and selling, but there will be certain points where you can buy a better price, you should do it, the number of coins will be increased very quickly.
C. Hold coins for a long time
Long-term hold mainly applies to investing in long term projects/coins that you really believe in. You can buy and wait until the market saturates as well as the market becomes more clear (For example until a coin you invest in can be practical and become a popular platform). This is a real investment, it involves a lot of risk and low success rate, but choosing a good project can also make you successful later.
4. Allocating capital when holding coins
Based on your strategy, you can find a suitable allocation of capital, but it should be fully divided including BTC, top coins and potential projects. And most importantly, never forget your position and…