Whats the point hodling, if you can't risk it all?

[Smartvirus]

Whats the point hodling, if you can't risk it all?

At first for me, many ranked up users and I'm sure a lot more beginners at the moment have come to know the term 'hodl' which is a connotation hold and infact was a misspelling of that same word. HODL has infact evolve to mean Hold On for Dear Life. Its a term that reminds crypto investors in times of market crashes that the crash would or could only be for a short while and for investors not to sell off their crypto asset hence, the best is yet to come.

Having this in mind, a lot of crypto investors are very confused on when to sell or get the returns off their crypto asset or investment. Though hodling might seem like a risk free move that indeed tests your patience and rewards it, it could be also one that comes with a major risk especially when you invest on altcoins. This is what brings me unto the topic of this thread.

Hodling could be just as risky as any other technique to crypto trading or investment strategy.

With many not knowing when to sell or actually quite on a declining project, hodling pose a different kind of threat towards investors. A threat that pushes you to either have the mind of a fortune teller on that project or be ready to bear the risk of a complete liquidation of that asset. Earlier on this year, I invested some $400 in a few coins I hope not to mention. One at $6 after a supposed fall from an ATH of $11 and is currently at $1.14, with another at $2 which pumped upto $8 and is currently at $1.2 with the coinmarketcap.com price index. Good enough, I've been watching this coin through the series of price decline and still choose to let it be. You can win, you can still win but then, it always comes with some risk factor which isn't limited to a complete liquidation of your asset. Perhaps this might not be the case for the pioneer coin like bitcoin but it still carries some attributes of such risk when linked with how patient and willing you are to hodl.

There is always going to be a risk to reward ratio and its always subject to you the investor. Mine is simple 'I have a target to an investment and its either I archive it or I'm ready to loose it all'. This aggress with the singular investment principle that states, 'invest only what you can afford to loose'.

Hodling is no simple task, you out to be ready and know that it's a test of patience and it plays with your mind. Though, its of great importance that you invest on projects you've researched and satisfied to be good for you. Build your comfort about that point and be ready for whatever it throws at you!

Disclaimer: This is no investment advice, just an insight to what I've experienced and feel about this term 'hodl'.

[mk4]

There's a reason why bitcoin still is the most recommended cryptocurrency to 'hodl', simply because it has one of the best risk/reward assets today. 99% of cryptocurrencies are simply not for long-term 'hodling' for obvious reasons.

Also, 'hodl' never meant that if you're 'hodling' you end up with totally zero risk. 'Hodling' is simply just a better strategy for the large majority, compared to buying in and out of price swings and end up with a lot less coins that they've started with.

[Rikafip]

There is always going to be a risk to reward ratio and its always subject to you the investor. Mine is simple 'I have a target to an investment and its either I archive it or I'm ready to loose it all'. This aggress with the singular investment principle that states, 'invest only what you can afford to loose'.

That's pretty bad investment tactic, to sell all only after it reaches some specific price as that's how newbies usually get rekt, waiting for price that coin/token never reaches. Instead, you should scale your sell orders, and same thing goes when you are buying.

I rarely invest in altcoins, but when I do my first goal is to get back initial investment and go back into BTC, and then I sell percentage of what's left each time it reaches specific price. I learned my lesson back in 2017/2018 when I used your tactic, and in the end I ended up with almost nothing as we now how altcoins ended and similar thing will happen again once bear market reaches.

[Magicalking]

OP while your mancho strategy may work for you. I think its best to cut bad losses before they get worse. One of the mistakes investors make is comparing bitcoins to altcoins. Altcoins are less reliable than bitcoins. Some projects are dead projects with no use cases, no utility. These coins are no good to hodl for the long term if you do you will be shooting yourself in the leg.

[Rikafip]

OP while your mancho strategy may work for you. I think its best to cut bad losses before they get worse. One of the mistakes investors make is comparing bitcoins to altcoins. Altcoins are less reliable than bitcoins. Some projects are dead projects with no use cases, no utility. These coins are no good to hodl for the long term if you do you will be shooting yourself in the leg.

Regarding cutting losses, that's another important thing that many people don't do. I did that in mid 2018, I sold all my altcoins with significant loss, and bought BTC. It wasn't easy to sell with 50% loss, but if I haven't done done that and went with "all or nothing" tactic, I would end up with 90-95% loss.  Don't marry yourself to a coin, just sell that shitcoin if you see that there is no progress and instead buy BTC.

[aysg76]

All the assets have risk associated with them but why people panic when btc dips is out of my mind completely.You need to take riks and if we see bitcoin as an asset for long term then there are very risk percentage with it and i don't know a single person who has hold btc from past 4-5 years complaining about profits or have you? You just needs to be patient for some time and rest wait for profits to come to your way.I also started a similar thread that why bitcoin is safe investment for me rather than risky one few days back :

Reasons why I prefer Bitcoin over any other assets and dips don't panic me....

Regarding cutting losses, that's another important thing that many people don't do. I did that in mid 2018, I sold all my altcoins with significant loss, and bought BTC. It wasn't easy to sell with 50% loss, but if I haven't done done that and went with "all or nothing" tactic, I would end up with 90-95% loss.  Don't marry yourself to a coin, just sell that shitcoin if you see that there is no progress and instead buy BTC.

Exactly if the coins are not getting high which is usually what these shitcoins don't do they need to sell their coins but they do opposite of the same and just keep holding that shitcoins and come under the influence of others and beleive that bitcoin is not safe which is their worse decision.But the problem is many claims it's expensive and invest the same amount in those fake coins assuming it will give them returns or make them millionaire within few days of holding and what happens is opposite and their funds are also gone.Altcoins are not best but btc is few understand it.The fast you understand better it is.

[Findingnemo]

Being smart is more good than being an agressor, I will look to save my asset value if I am not seeing the progress in it. But before all these things we have to only invest what we beleive that it has potential to show progress in the future so we trust it and take the risk, either it may goes to 100 or zero when it comes to HODL altcoins. Well, I might follow a strategy if the price fell 50% I will not take the risk anymore better I will go with the proven coin which js Bitcoin and make a bet on it for long term.

[Daniel91]

As for bitcoin, I haven't actually bought it for a long time, but I transfer what I get from the signature campaigns to the ledger and hodling it. 
When btc reaches my desired price, I will sell it.
That's my strategy and I'm not saying it's risk-free, but at least I'm not risking my own money here, so I don't care too much, whatever happens.
I risk a lot more with some other crypto and non-crypto projects and investments, but for each investment I have a clear goal and exit strategy.
Hodling is my plan only at btc but not in other projects where I invest my own money.

[bittraffic]

Selling at ATH is the best thing that a holder should do in order to gain when you have plans to buy back at a lower price. But if you don't plan to sell, just hold and forget it for maybe more than years. It's going to waste your time if you aim for a very high price, waste years of waiting so it's better to trade if you are not willing to hold for years.

Don't rely on bullrun for money because this will also disappoint you if the altcoins you hold don't moon. The reason why they tend to be BTC maximalists is that they know it's BTC that only will go up faster.

[Beparanf]

Selling at ATH is the best thing that a holder should do in order to gain when you have plans to buy back at a lower price. But if you don't plan to sell, just hold and forget it for maybe more than years. It's going to waste your time if you aim for a very high price, waste years of waiting so it's better to trade if you are not willing to hold for years.

Don't rely on bullrun for money because this will also disappoint you if the altcoins you hold don't moon. The reason why they tend to be BTC maximalists is that they know it's BTC that only will go up faster.

It's easy to say to sell on ATH and buy on ATL but it's very hard to determine when ATH & ATL will occur or if the current price is that.

Smart traders usually ride the waves when there's a volume but investors are holding no matter what's the price until the project that they are investing are already showing the fruit of there labor and generating profit. Many user didn't know the difference of trading and investing that's why they are always being confused when there's a sudden price movement.

[og kush420]

IMO hodling is a strategy that doesn't mean holding the coin forever in your wallet. Of course it mean buying and then waiting for the pump. How much pump you want is entirely upto you. There are people who bought bitcoin at 10k and waiting for 100k they are still hodling. ROI is upon you.

[tranthidung]

There's a reason why bitcoin still is the most recommended cryptocurrency to 'hodl', simply because it has one of the best risk/reward assets today. 99% of cryptocurrencies are simply not for long-term 'hodling' for obvious reasons.

Because of many things. Here I only mention a few

• Bitcoin has biggest hashrate on its network. It means it is a strongest crypto network and a safest one so far.
• It has biggest communities
• It has biggest adoption, biggest trading volume
• It has best developers

Those components combine with each other and make Bitcoin has best survival in crypto.

Also, 'hodl' never meant that if you're 'hodling' you end up with totally zero risk. 'Hodling' is simply just a better strategy for the large majority, compared to buying in and out of price swings and end up with a lot less coins that they've started with.

This. HODL is to get profit not hold to get loss. Many altcoin hodlers think they are hodling but they are not. Because those coins they invested and are hodling won't be able to survive in bear market or more than 4 year. They end with no ability to get initial capital back.

[GeorgeJohn]

Also, 'hodl' never meant that if you're 'hodling' you end up with totally zero risk. 'Hodling' is simply just a better strategy for the large majority, compared to buying in and out of price swings and end up with a lot less coins that they've started with.

From my perception, it's quite understood that without hodling any coin for long time frame and without taking risk measure in cryptocurrency they will be no chance of adventuring into huge profit in cryptocurrency industry, in actual sense it seems that anyone who is hodling coin have already into the risk measure.

[Jawhead999]

Holding entire your life isn't a wise idea especially for Bitcoin, you'll loss a lot if you buy on peak. I prefer to cut loss and buy every dip, so it will recover more faster than just holding until the price increase like the beginning you bought.

While on altcoins, I'd say it's true I was like that go big or go home but it's only 5-10% of my portfolio... I consider it as gambling lol. Some project going to the moon, but many of them were become shitcoins.

[pawanjain]

Many people who invest in cryptocurrency and especially the old timers rather choose to hodl instead of trading.
Hodling is definitely no so easy since we need to keep diamond hands and have good amount of patience to hodl our coins through the worst of times.
The reason why many people choose to hodl is because trading is not for all. Not everybody can make consistent profits from trading.
Hodling gives huge gains in the long term.

[Lucius]

With many not knowing when to sell or actually quite on a declining project, hodling pose a different kind of threat towards investors. A threat that pushes you to either have the mind of a fortune teller on that project or be ready to bear the risk of a complete liquidation of that asset.

Let's immediately dispel all the myths and say that any investment in cryptocurrencies is risky, but that so far investing in Bitcoin has proven to be quite safe, although the future is always in question. Yet investing in some altcoins has also proven to be very profitable over the long term, but these are rare exceptions that do not set any rules.

Hodling is no simple task, you out to be ready and know that it's a test of patience and it plays with your mind. Though, its of great importance that you invest on projects you've researched and satisfied to be good for you. Build your comfort about that point and be ready for whatever it throws at you!

The key thing is to never invest the money we need, or worse, to borrow money to invest in cryptocurrencies. If someone is not under pressure to have to sell, then it is much easier to survive any major correction or long crypto winter. Another big problem is the purposefulness and legitimacy of projects in which someone invests, and only a few can separate the grain from impurities, which means that investing in all new crypto projects is extremely risky and in the long run mostly leads to loss of investment.

[Porfirii]

The key thing is to never invest the money we need, or worse, to borrow money to invest in cryptocurrencies.

That's the golden rule. If most people invested only what they could afford to lose, the price wouldn't be so volatile as hodling would be less risky. But we all know that this ideal and not a reality in many cases.

Hodling is risky, specially with most altcoins, but if you can set some limits and control your greediness it can be the best investment strategy for most of us (not financial advise).

[sheenshane]

Holding entire your life isn't a wise idea especially for Bitcoin, you'll loss a lot if you buy on peak. I prefer to cut loss and buy every dip, so it will recover more faster than just holding until the price increase like the beginning you bought.

I tend to disagree with this idea, it should be anytime you can buy Bitcoin either if it's at a peak price.  Because you will never know when the peak price will stop, the only thing that we can determine is that we've reached the previous ATH.  But yes., it could be better if you will buy at the dipped price but another problem is there's no exact time frame when it will happen.  So I suggest, anytime you can buy and hold it for a long period of time.

Holding at least for about 10 years is I rest assured that there will be your profit.  First thing first, if you believe in Bitcoin and invest in it, you should believe it too that Bitcoin will grow after for how many years. (it's already proven)

So now, OP was right, what is the point of holding if you can't risk and if you don't believe in Bitcoin.

[Oceat]

IMO hodling is a strategy that doesn't mean holding the coin forever in your wallet. Of course it mean buying and then waiting for the pump. How much pump you want is entirely upto you. There are people who bought bitcoin at 10k and waiting for 100k they are still hodling. ROI is upon you.

Yeah, of course holding is just a temporary method to be able to buy the dip and wait for the pump but who would want to hold Bitcoin forever and reject all of the opportunity to make some profit? Investment need some strategy if you want to maximize your profit and holding is one of the best strategy when it comes to investment in Bitcoin since it has proven already that the price would eventually pump.

Buy at your own risk and invest what you can afford to lose. If you know some of the golden rules in crypto, you will have no problem with your investment.

[qwertyup23]

There's a reason why bitcoin still is the most recommended cryptocurrency to 'hodl', simply because it has one of the best risk/reward assets today. 99% of cryptocurrencies are simply not for long-term 'hodling' for obvious reasons.

Also, 'hodl' never meant that if you're 'hodling' you end up with totally zero risk. 'Hodling' is simply just a better strategy for the large majority, compared to buying in and out of price swings and end up with a lot less coins that they've started with.

You are definitely correct. HODLing is by far the most convenient way of investing your BTCs for long-term investment. By basing one's decision purely on the price history of bitcoin, one can have this reassurance and hope that its price would skyrocket 3-4 years from now or from the next fork.

Personally, if I could have saved majority of my BTCs that I earned last 2017, I would have re-invested it and probably purchase more on the process. That is why, I adopt HODLing as my primary source of investment method rather than risking it through gambling, trading, etc.