Hodl(Hodl On For Dear Life) or TP(Take Profit)
GameKyuubi was called a poor trader in December 2013 for not selling off his assets when the market was bullish, but he replied when he was tipsy that he will not be selling, and he was “HODLing”. Since then, the entire world of crypto adopted the misspelt word as the means to hold on to a coin and never sell.
I will probably create one when I have a lot of crypto assets. Your mistakes can give you funny popularity when you have millions of dollars, lol!
I have been trading cryptos for over four years, and I can say I have made a decent figure trading. We consider some assets a long time, and some are short time. So we should hold long time assets in the wallet for a long time before taking out the profits. Some people invested in Bitcoin many years ago, and they still have it held down in their wallet till now. I think at a point Leo token was less down $0.02, and Hive was a low as $0.08. So all these projects and dapps have proven to have a long time value than a short time value. Because the mining rate of hive will reduce over time, it is a more proof that everyone must start holding a considerable amount of Hive because a time is coming that hive coin will be hard to earn, thus giving it more market value.
However, with Bitcoin, Ethereum, and some other long time valued projects, sometimes when they are bullish and there are considerable profits per unit, taking profits become tempting. The bullish run may also have a limited time and when it gets to a point, the market resets itself and parts of the market value will reduce. I currently have a considerable amount of Shiba Inu and I have been holding it for a long time. The profit on it is already appealing but there has been news about Shiba going more bullish and I have been hodling on to that.
pros / cons
I remember that the year 2017 was the main breakout year for many cryptocurrencies. Bitcoin hit ATH of almost $20,000 and many people were excited about hodling bitcoin for a long time. After a while, the market become bearish that bitcoin dropped to $3,000 and the people that sold during the bullish trend seemed the be the best market players because if they are were initially hodling 10 BTC and they sold at $18,000, they will have more quantity during the bearish market giving them more BTC to hodl. Hodling is an excellent strategy for investors who do not have the time to follow market trends, technicalities and others.
Not all assets are for a long time. And in a market as volatile as this, taking profits at some points is extremely important. I have seen a few traders that have turned their 1,000 ethereum to 2000 within the space of 2 years by selling high, waiting for the bear, and they enter the market again. I think it just depends on which work for you. Why Hodling is good, it has its limitation when the big players are toying with the market.
My name is @tykee (Barlogun Michael), a web developer, Civil engineer, content writer and the founder of Meshboc Technology & Digital Services Limited. I am using my content to share my opinions on tech, lifestyle, and finance, to promote myself and impact my readers. I always like to learn. Education is the most thing I cherish.
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