HODL Strategy

Start course
Difficulty
Beginner
Duration
28m
Students
51
Ratings
5/5
starstarstarstarstar
Description

This course covers a hot topic in the world of cryptocurrencies: investing. We look at which investment strategies to consider and which to avoid. We also look at initial coin offerings, tokens, and how to track the cryptocurrency markets.

Transcript

In this lecture, we're going to dive into the safest strategy for those getting started on their cryptocurrency investment journey. Not only the most safest strategy, but also one which has been slightly profitable, slightly highly more profitable for many of those who have gotten involved in this ecosystem. So, to begin with... Nope, it's not a spelling mistake. Well, it initially was back in December 2013. I am hodling, which was intended to be, "I am holding." So, that's right. HODL. It's a slang term that has been adopted by the cryptocurrency community now, which at its core means holding cryptocurrency rather than selling it. It follows the principles and philosophy of a buy and hold strategy. The actual acronym, HODL, has been referred to as meaning, Hold On For Dear Life. This HODL approach is perfect for avoiding that trap of thinking you can time the market, which often ends in many losing money. By HODLing, you're likely to experience greater gains. Looking at cryptocurrencies as an asset class, they're extremely volatile. It can rise 200% within a week or a month, following which falling by 100%. We've seen these extremely volatile market conditions throughout cryptos history. Hence, it's not something I recommend trading daily. You will more than likely get caught out by the sharp swings of the market if you have no trading experience. By following this HODL mentality, you can avoid the two traps many fall into when they start out. One, fear of missing out. Two, fear, uncertainty, and doubt. The true HODL investors out there truly believe that specific cryptocurrencies will have a strong future. Hence, they hold, not just trading for a quick profit. Now, even though this strategy sounds simple, there are a few tips I recommend you keep in mind when setting out on your journey with investing in cryptocurrencies. One, HODL the good projects. When you begin diversifying your portfolio, don't just throw your hard-earned money into any project you hear through Reddit comment. Do your research. Invest in valuable projects. Two, never invest more than you can afford to lose. Remember, this is a highly speculative market. If the market were to go to zero, not likely, but if it did, would you struggle to put food on the table? Don't over invest. Three, don't get caught in the fear of missing out. HODL helps cure this disease, otherwise known as FOMO, Fear Of Missing Out. Don't invest just because everyone else is. Make sure you understand what you're investing in before you do. Just to sum this lecture on the HODL strategy up, let me sum up what it enables you to successfully do when it comes to getting started with investing in cryptocurrencies. One, the HODL strategy allows you to invest following a simple proven strategy. Two, if you don't have the time to invest actively in the markets, HODLing is perfect. Three, if you aren't skilled in technical analysis, this isn't a requirement for successfully HODLing. And all in all, this HODL strategy is perfect for the newbies of you, as well as the more experienced of you. Just keep in mind what I've shared in this lecture and it will hold you in good stead. I look forward to seeing you in the next lecture, where we'll discuss what Initial Coin Offerings are, otherwise referred to as ICOs.

 

About the Author
Students
464
Courses
8
Learning Paths
1

Ravinder is an expert instructor in the field of cryptocurrencies and blockchain, having helped thousands of people learn about the subject. He's also the founder of B21 Block, an online cryptocurrency and blockchain school.