Bitcoin Forum

HODL is very popular in Bitcoin world and word come into existence when a bitcoin believer  GameKyuubi    (https://bitcointalk.org/index.php?topic=375643.msg4022997#msg4022997) misspelt the word HOLD under the influence of alcohol urging fellow bitcoiners not to sell their bitcoin in the crashing market but instead wait for market to recover.

The misspelt word got the fancy of many and HODL stratergy born which simply means to hold your bitcoin in all circumstances. Ironically it is in total contrast with the situation where  laszlo (https://bitcointalk.org/index.php?topic=137.msg1141#msg1141)  offered 10000 bitcoins for pizza.

Bitcoiners start popularizing the HODL strategy so much that it raise an important question whether it is a good stratergy or not. First of all,HODL is not a new concept, whenever the market tanks experts always suggest not to panic sell but advice to buy more of stock in cheap to average out and get more gains when market stabilize.

HODL as a concept or stratergy is not at all beneficial to bitcoin ecosystem. Bitcoin is a currency and currency needs to flow, be part of the transactions, involving more and more people using the currency.If nobody use it as a currency then it will just become a speculative asset. Technically Bitcoin network need transactions to keep the miners engaged because block rewards are going to half after every 4 years and Satoshi believed that earning from transaction fees will keep the miners incentivized in future.If there is no transaction fees for miner to earn then why miner will be supporting the network. If there is no network then there will be no Bitcoin, So HODL principle is basically against the Bitcoin network as well as the satoshi dream.

We exactly need a eco system in which we can earn the bitcoin, spend the bitcoin and save some for our future uses. It is similar system to fiat but instead earning in fiat we need to earn in bitcoin.This will hep us to constantly keep earning the Bitcoin and make us free from worry that what is the price of bitcoin against USD and we will be saving in a global currency. HODL mentality will not allow this ecosystem to be active.

In the end, by HODL you might have saved your investment in troubled time but if you think instead of HODL if you tried to average out your Bitcoin or just doubled up then you will be more happier and have more Bitcoin to transact.

So say no to HODL instead try to earn it and spend and  let the currency keep flowing.


Disclaimer: This is the original post by me though I first posted it in Fit to Talk Board.
https://fittotalk.com/english-talk/index.php?topic=183.0

I don’t see your point because your reasoning is based on a contradiction:

 
HODL isn’t opposed to earn bitcoin. It is opposed to selling, but you can keep earning and buying more.

If you earn bitcoin, like on this forum, there is a transaction sent to you every time you get paid. If you buy bitcoin, the same happens. So, miners get their fees and they keep working. Then, there are many people whom HODL but spend a small percentage of their bitcoin holdings.

Therefore, I see no trouble here.

HODL has a good and bad effect for sure. it is great for altcoins specially when it only just begun and you think that it will be doing great in the future.

its like gambling, youll never know if the price will moon or just dump so its a risk.

If that means a long term game, then yes, Hodling is a great strategic. Not to panic, not to cash out, not to make quick decisions. But as a matter of fact, sooner or later you will sell

If nobody sell how you will earn?
First you have to think clearly what do you think of Bitcoin ? A currency or a speculative investment tool?

If you think currrency, then there is no place for HODL.
If you think it is an investment product , then HODL is the worst investment strategy that we are recommending to each other. HOLDERs failed to take profits when they are supposed to. Investment should follow some investment principle not some mere speculations.

@Comino,@Elqui
I agree investment can be risky but they are not same as gambling. HODL do not make a good investment strategy at all.

The 100% HOLD strategy hurts the Bitcoin ecosystem but people need to balance.
I mean, for example, I am actively using Bitcoin on a regular basis, but I also try to save some coins in case I have a hard time, some months I can some months I can't. It's like IRL when you try to save money with your saving account, sometimes you can, sometimes not.

What I have been doing is using it to buy things with and then immediately I use my online account and buy the same amount of BTC.

This way I feel like I am doing something positive for the BTC ecosystem and also I am not separating myself from what WILL be substantial raises of the value in bitcoin.

HODLing is a good idea, especially right now at under $10k, but help the system gain adoption by moving those coins around.  If you have a business, start accepting bitcoin for payments.  Boom! Instant HODLing!  :)

That’s a contradiction again. For me earning bitcoin, like from the signature campaign I am in, nobody needs to sell.

Well, OP got a point. Bitcoin must revolve market, It's simply a supply and demand argument. If the demand is high and the supply is low how would that certain campaign pay you in Bitcoin? Let me put it this way, you are currently in a campaign which is an established online gambling site, How does your campaign earn Bitcoin to pay you? They technically also sell (above those other service, sponsors, etc. that campaign do). So, at some point in time you are going to sell your Bitcoin, especially when you cash it out in your native currency. Everybody will sell there coins eventually.

Yes, of course. RESISTANCE is also a wise way to get lots of profits with high selling prices, because the development of altcoin prices also increases at any time.

I agree that OP got a point. Bitcoin must circulate. But I don’t agree with his reasoning.


They are able to pay me because people buy bitcoin using fiat, and spend those bitcoins on the site.


Probably not. I haven’t exchanged any into my fiat currency, but I’ve spent some. I’d prefer to spend my bitcoins directly to buy goods and services but that will depend on my personal situation, the price of bitcoin in fiat terms and how fast mass adoption is reached.

It's not an investment or a currency, it's freedom.
Never selling that.

The best policy would be to hold and not read anything about crypto for the next five years. Better for your heart and blood pressure, too.

Sadly, that would be just as difficult as to quit breathing for the next five years.

Its a good policy if you are not used to day/swing trading and if you are in a general uptrend.
Otherwise its a horrific policy that has seen ppl hodling down from all time highs to zero.
If you don't take profits, you get took.

True. A man killed himself after he lost 60% when he buys Bitcoin at ATH (after he sold his house, cars, and other properties).

Who knows what will happen if he doesn't care about short-term price at that moment.

It's depends on the coin exactly. If you believe in their product, their roadmap, their prospect then it's worth for hodling that coin/token. cause we all know before we invest in some coin/token,
we already do our research, not just follow some friends or just see the rating good in the ico rating sites or other terms.

And if you want to hodl some coin, just buy them in some stage.
Example : if you have $1000,and wanna buy coin A 1$@each, dont buy them all. maybe you can put $200 for the first. then let us see the price, if it down you can analyze it again before put your money in that coin again. You must see if it normal or anything happened inside. if it's just a normal scheme, you can buy them again at $0.8
then when that coin down, you still not loss a lot. it's just a point of Hodling scheme.

But remember from the first point. You must have a reason why you choose that coin/token and do your own research.

G luck

I think HODLING is a good decision when you are undecided what to do on your crypto but to make it policy is a different thing. When you say policy, it is something you agreed to do and be mandated according to what is written on the said policy. Crypto investors has the right to decide what to do with their tokens, they are free to buy, hodl and sell whenever they want. HODLING cannot be a good policy, but a privilege of an investor,.... HODLING and waiting for the right moment to come if they want to let go of their cyrpto.

HODL is probably a better idea/policy for stocks, for Bitcoin, I think you need to a little bit more discovery / risk assessment due to the greater amount of volatility.

BTW, depending on how you acquire bitcoin, it is ok to convert to fiat every once in a while. For many, Bitcoin is acquired not through conversion, but through services/pay. For example, web developers or designers. It's not always a good idea to HODL 100%. You can always sell a bit to diversify.

Well total capitalizzation will continue to grow, so if you dont mind.. hold; if you trade over the pump is better!

HODLing for me is kinda of dumb. Well, for people who have no idea how to day trade, it is smart. But I would prefer to make a profit, even a small one, from each spike. Its all in the math. Either you make 3% 10 times or you make 30% one time. For those who cann't math, the 3% 10 times adds up. First its 3% then its 3% (from original amount and 3% profit amount) and so on and so on.

34,4% > 30%

But then again, if you don't know how to read the indicators and strategies, you will miss out big time.

Usually, yes but also no. No because it affect the total market capitalization and for a coin to thrive there must be large and constant market exchanges which would be problematic if everyone was to long term hold.

holding is the best option ,if you don't want to break and you want to support the project so that you can earn a lot more profit,if the project become success in the future

You left me speechless.



That man did not did the investment, that was plain greed .

I don't think so. Sometimes Holding is worse policy.
If you wondering the risk, you have better to hold rather than make other decision. And sometime holding is nothing because it all depends on market.

In some cases, I believe that Hold is sometimes the best solution. Many adhere to this policy and remain in the winning situation

Sometimes holding is a useless decision because we know that the market is up and down. Why should we hold if the market is good for selling our coins. It depend on the market coins price, we can say whether holding is good or useless decision. And everyone might has different think and decision to this questions.

i strongly opposed HODLing.
why hold when you can take some profit?
besides, someone has to sell something, if not there won't be circulation of the coin, right?

saying no to HODL like the topic suggest negate the concept of INVESTMENT, hodling coin is a long term investment, just like what we say bitcoin is, a coin wouldnt be an investment if we just acquire and sell them off at will without hodling it. Though in HODLING one may want to watch out for the progress of the coin in the coinmarketcap in order to know if its doing well or not.

Holding or selling decision has its own advantages and values. Each decision depends on the individual whether the individual want to double their investment with the risk or even they prefer to hold due to the secure reason. We can not say one of them is worth and one is worse because the decision made depends on the individual. It is the individual believe. 

HODL is all about bitcoin and has nothing to do with altcoins. This fact will be a painful lesson for most people.
DUPM can be good strategy for altcoins.

Many people who use crypto as means of making money are all about holding at least certain coins anyways and this is not so healthy for the market because it reduces the capacity for market trading required to keep the dynamic state of a market.

It depends to the project. if you think the project is real and not scam then hodl policy of there coin is good for me

Yeah I also think hodl is another strategy to play, though it might not suite
quite well all the time but it seems to work tremendously well with bitcoins.
I think it depends on the market and the different goals as well as strategies
people have with crypto. We must adjust and formulate new ways to have
better results. To hodl or not that is entirely debatable, a classic case of
personal choice and approach. 

Considering that Panic sell has never qualified as a pro's strategy, then HODLing may be considered a worthwhile policy.

But then again, the  word 'good' is relative. What's  good  today may not be good in 3 months' time and a terrible choice today may be a life-saver in a matter of weeks.

So, the strategy is always 'A little Panic-sell and then A little HODL'   :D .... It  has always helped.

Cheers!

Hodl is a great policy that comes with a caveat, Hodling points at those investors who are willing to hold on to their coins for the long haul and this policy cant work for day traders like in stock. Though Just know that the hodl policy, keeps Bitcoin from circulating throughout the society which in turn affects the value.