What is HODLING?
New investors to crypto probably have heard the term HODL get thrown around quite a lot and wonder what that means? Do they mean to say, hold the investment because it’s going to perform in the long term?
The long and short answer is no. All the people who have made the most money from Bitcoin & Ethereum were those who bought and never sold. This is called hodling, the practice of Holding On For Dear Life. Over the past ten years, nothing has performed better than Bitcoin; it is the single greatest asset ever, full stop. Trying to trade and time the ups and downs of the market would have resulted in you missing out on massive returns. Time in Bitcoin is always greater than trying to time Bitcoin. Understand the difference, and it will benefit you in 10 years. People trade stocks they don’t see long-term value in; they want to make a quick buck. Bitcoin is most valuable when viewed through a long-term lens, and you will never sell this asset just simply Hodl.
The Ultimate Long Duration Asset.
As Michael Saylor would say, “If you do the math, Bitcoin is better than any stock, any bond, any gold long term.” These are words to live if you are a part of the Hodl Gang. Hodl, meaning Hold On For Dear Life, is the single most important concept you need to know when investing in Bitcoin. Bitcoin is a store of value and slowly but surely will take over gold in the overall market cap and will replace it entirely in the future. Short-term investing isn’t the way to think regarding Bitcoin. It’s like fire or the internet. You buy and keep it forever as it is one of the most remarkable technologies ever created.
Is Time Horizon Important?
Time horizon is crucial depending on what your actual time horizon is. So first things first, figure out what year your personal goal is. If you are looking out one year, Bitcoin seems volatile and full of blemishes. There might even be stocks that do better than Bitcoin. If you look three years out, Bitcoin starts to emerge as an option of only a select few. 5 or 10 years, the smoke clears, all the noise goes away, and the decision can only be one, and that is Bitcoin. When investing, have a time horizon in mind. Never lose sight of it, HODL.
Appreciate what you have.
Don’t miss the bigger picture; Bitcoin isn’t only a digital coin you have in your possession. Bitcoin is the first monetary network in human history, not a stock or a token. The HODL GANG understands why they can protect the network by never selling regardless of the ups and downs. Bitcoin will change civilization, and it’s an engineering breakthrough. It’s not something to be taken lightly and handled loosely. If your reading this article, I’m sure you’ve had conversations with Bitcoin Hodlers. You’ve probably heard how it makes them feel and how no matter where the price goes, they are never selling. That results from discovering Bitcoin for what it is and why Bitcoiners are the most loyal enthusiasts in the world.
There is a decision that has to be made about where you will put your trust and money. If you put it anywhere other than bitcoin in the last decade, you lost, plain and simple. What does the next decade have in store? Well, you cant go big tech because of the underlying exposure to fiat cash flows. You cant choose gold because of counter-party risk, its open system, and the gold miners present a massive problem. Now let’s look at crypto; there are 6000 various coins, which is the right decision for the decade. #1 is Bitcoin, #2 is Ethereum but, Bitcoin is in a league of its own. Because it is the ultimate long-term asset, there is only one way to ensure it is YOUR ultimate long-term asset, and that is to Simply HODL and join the HODL Gang.