Why HODLing is such a genius strategy

[Royal Cap]

Investors need to set some target by regularly buying BTC continually using their discretionary income and hodl years for about 4-10 years or more by making sure to have reached their desire goal or bitcoin over-accumulation point.

But if you have to blindly buy Bitcoin every month, which can actually be a disaster for investors who enter at the peak of the bull market, If someone does not understand the cycle and only focuses on buying, then when their entire portfolio dumps 70-80% in the bear market, it is very difficult for the common man to maintain the motivation to hold for those 4-10 years. I am talking about beginners. However, It is true that buying regularly is basically a strategy to increase accumulation, not a condition for HODL. Rather the advantage of buying regularly is that the risk of timing the market is reduced. For example if the price falls, you can get more BTC for the same money. However, if you already have a large amount of money in hand, DCA will not always give a higher return than HODL or a one time investment.

[puloweh555]

Investors need to set some target by regularly buying BTC continually using their discretionary income and hodl years for about 4-10 years or more by making sure to have reached their desire goal or bitcoin over-accumulation point.

But if you have to blindly buy Bitcoin every month, which can actually be a disaster for investors who enter at the peak of the bull market, If someone does not understand the cycle and only focuses on buying, then when their entire portfolio dumps 70-80% in the bear market, it is very difficult for the common man to maintain the motivation to hold for those 4-10 years. I am talking about beginners. However, It is true that buying regularly is basically a strategy to increase accumulation, not a condition for HODL. Rather the advantage of buying regularly is that the risk of timing the market is reduced. For example if the price falls, you can get more BTC for the same money. However, if you already have a large amount of money in hand, DCA will not always give a higher return than HODL or a one time investment.

Yes, that's right just like you said. The Hold strategy also needs to consider timing looking at the current price, this is indeed a good time to apply the DCA Strategy because the price has dropped a lot from the last ATH. With the DCA strategy it will reduce market timing risk and allow us to get more BTC when the price drops like it is now.

But using a hold strategy without paying attention to timing can also be fatal especially for beginners, especially if they enter at the peak of a bullish run without understanding the cycle. So when Bitcoin’s price drops 70-80% in a bear market it can crush their motivation to keep HODLing. That’s why when investing in Bitcoin you need to understand the cycle so you can set clear targets and stick to them this is wiser than just blindly buying every month. That’s why many people say that DCA is the best strategy for accumulation, but it’s not a guarantee of success either because the success of the DCA strategy lies in your ability to withstand volatility until you reach your goal.

[Mate2237]

Hodling Bitcoin is one of the best ways to make money from crypto currency and a lot of people actually think that this is a lot safer than other forms of investment in crypto. Trading is profitable but for someone looking for advice on which area to go into in cryptocurrency I would recommend that you hodl Bitcoin, this is a preferable coin to invest in because it's less volatile than altcoins.


Hodling has it's risks because there's nothing that's risk free when it comes to crypto currency, all you can do is to look for ways to reduce the risks by investing an amount that's comfortable with you instead of trying to invest way beyond what you are capable of because you want to make quick profit.

[Popkon6]

Hodling Bitcoin is one of the best ways to make money from crypto currency and a lot of people actually think that this is a lot safer than other forms of investment in crypto. Trading is profitable but for someone looking for advice on which area to go into in cryptocurrency I would recommend that you hodl Bitcoin, this is a preferable coin to invest in because it's less volatile than altcoins.

There is no comparison between Bitcoin and other unique coins, if you can hold Bitcoin it is the best and the best for you. If you can plan to hold Bitcoin for a long time, it can play the most effective role for you, in this current situation Bitcoin is the most attractive and the right place to change your fortune.
You can never be poor by investing in Bitcoin if you can hold it for a long time, because if you can buy it once and fold it, then there is no need to worry about it later, but when the price of Bitcoin increases, then you can sell it. Only responsibly keep the seed phrase of your wallet safe.

Hodling has it's risks because there's nothing that's risk free when it comes to crypto currency, all you can do is to look for ways to reduce the risks by investing an amount that's comfortable with you instead of trying to invest way beyond what you are capable of because you want to make quick profit.

There is risk in all things, so it is natural that there will be risk in investing in Bitcoin. In the current situation, if you can hold Bitcoin for a long time, it will be much less, because the risk in short-term holding is much higher, while in long-term holding, the risk is lower and the possibility of profit is higher. And if you create an emergency fund to sustain your Bitcoin investment, you will save more and the risk will be less.
And you can easily sustain your Bitcoin investment for a long time, because Bitcoin is more effective against inflation, which is why more people are investing in Bitcoin.

[bitzone]

HODLing sounds simple, but I really don't buy the "just set it and forget it" advice. You still have to keep your coins safe, manage your risk, and figure out what you'll do when things shift.

Holding is the easy part. Sitting through the actual ups and downs of a full market cycle is what really tests you.

[YellowSwap]

HODLing is a strategy par excellence which matters if you want to make a profit from Bitcoin.
You just have to keep your Bitcoins safe and hope for price rises. It's all you have to consider when HODLing, and it's what makes such a strategy so popular. You don't have to worry about it, as long as you have sent your Bitcoins to an address for HODLing. You don't even have to reallocate your portfolio, Bitcoin HODLing is timeless par excellence.

Holding is not a piece of cake, it's not something that everybody can do conveniently because it's tasking for some set of people, those who are living an average life with not much money on the table will struggle.

Once a emergency comes up they might not have any other choice but their portfolio, for holding to be easier for you there are steps that needs to be taken, there are plans that must be in place already.

You need emergency funds, you need a never ending income source that you can use to face your own life for a long period of time, maybe ten years in line or more, then you won't have any reasons to go into your crypto portfolio and sell some Bitcoin.

[Ishicryptic]

HODLing sounds simple, but I really don't buy the "just set it and forget it" advice. You still have to keep your coins safe, manage your risk, and figure out what you'll do when things shift.

Holding is the easy part. Sitting through the actual ups and downs of a full market cycle is what really tests you.

Hodling is basic, if you have set your mindset to buy and hold for many years then the other factors that you mentioned becomes secondary, if you have a set goal of not selling that is what will help you to remain focused despite the market dynamics. Assuming you choose DCA strategy to accumulate for many years you don't have to bother yourself about monitoring the market because it would be a distraction for you, your immediate concern should be to meet up with your discretetionary funds to accumulate. Financial management so you can sustain buying for many years and how to protect your wallet security are important areas to be knowledgeable about but like I said making up your mind to buy and hold for many years is the basic.

[Marvelockg]

Hodling has it's risks because there's nothing that's risk free when it comes to crypto currency, all you can do is to look for ways to reduce the risks by investing an amount that's comfortable with you instead of trying to invest way beyond what you are capable of because you want to make quick profit.

The main challenge in bitcoin is not even the amount because if you invest little, your returns will be little and that is certainly not a good way to go about any form of investment. the phase of holding unto your asset is what seams to be difficult because you are expected to hold through times when bitcoin is doing well and times when the market is still not favorable. these might be easy theoretically but in reality, it is not easy at all.

If you want a good returns from your investment, holding is not just an option, it is a necessity. same way if you don't sow you will not reap, if you don't hold, there isn't going to be profit for you in any way.
 

[Emjay24]

For investment like bitcoin, intending investor must bear in mind that it is a long term plan to be able to maximize profit. So, it's preferred to use discretionary funds or money that has been set apart strictly for investment that way you won't be under pressure to sell at any given opportunity.

You have posted what I will like to post, it is better to use just discretionary income to invest in bitcoin only. Not good to borrow money to invest in bitcoin and also not good to invest the money that you want to use for something else in bitcoin because that can be a short term investment, but bitcoin investment yield is better and higher if holding it for long period of time.

About using loans to finance your bitcoin investment, I would mention it is not good to use loan to start it, just like it is not the best option to start a new business that you've no experience in it with a loan, most times, it doesn't end really well. It's best to use your discretionary income to start and continue buying periodically, while you get to understand your financial abilities and cashflow better.

As you advance in your accumulation journey, you can stumble on a nice dip and decide to take advantage of the situation and get bigger quantities of bitcoin, you could take a loan with low interest rates, bearing in mind that you can pay back from your discretionary income within a feasible timeframe, you can use your normal buy amount to keep paying the loan, it's more like buying with a year's DCA  amount at once or so.

[Achalugo BTC]

HODLing sounds simple, but I really don't buy the "just set it and forget it" advice. You still have to keep your coins safe, manage your risk, and figure out what you'll do when things shift.

Holding is the easy part. Sitting through the actual ups and downs of a full market cycle is what really tests you.

You are totally right. When people hear about holding, they think it is a very simple thing, which makes them overlook some important factors. And that makes some people invest in it without making proper plans. It is only when they encounter difficulties that they understand that some factors may not seem important, but actually play a vital role in their investment. And that will make them understand discipline is essential because it helps keep them going despite the ups and downs of the market.

[Solodoski]

I think holding is the best strategy in bitcoin investment,  because it does not have much risk and it also gives you time to accumulate at your own paste. I see other strategy as gambling,  because you are buying and selling immediately or just hoping for the price to rise in a short while, so you can make profit,  but holding on the other hand gives you the luxury to just accumulate and hold it for a long time, and most times you tend to make profit in the long run. I am not saying that it's certain to make profit in the long run, but your chances are very high,  so that's why I will advice anyone to adapt this strategy,  because to me it still remains the best strategy.

[Tmoonz]

I think holding is the best strategy in bitcoin investment,  because it does not have much risk and it also gives you time to accumulate at your own paste. I see other strategy as gambling,  because you are buying and selling immediately or just hoping for the price to rise in a short while, so you can make profit,  but holding on the other hand gives you the luxury to just accumulate and hold it for a long time, and most times you tend to make profit in the long run. I am not saying that it's certain to make profit in the long run, but your chances are very high,  so that's why I will advice anyone to adapt this strategy,  because to me it still remains the best strategy.

It can be very devastating to buy Bitcoin and expect to make profit in the short time, the market movement is highly unpredictable, you can buy now instead of going up as expected it keeps coming downward and that is while chasing short term profit can be traumatizing. Holding on it's own don't make you wondering about the market movements in the short term rather it gives you enough strength to gather as  much Bitcoin as possible, just as you said that profits making is not certain even in the long run but there are higher chances, in other words no investment that is risk free.

[Jet Cash]

I'm a Bitcoin maximalist, and a long term HODLer. I've yet to make a purchase using Bitcoin. Maybe I should do this just to prove that I can do it.

[terrific]

I'm a Bitcoin maximalist, and a long term HODLer. I've yet to make a purchase using Bitcoin. Maybe I should do this just to prove that I can do it.

You have to do it not to prove you can do it but to enjoy it.
It's been a while and after several months, welcome back Jet! 

I am not saying that it's certain to make profit in the long run, but your chances are very high,  so that's why I will advice anyone to adapt this strategy,  because to me it still remains the best strategy.

That's a humble statement that it's not guaranteed to make profit by holding bitcoin.
But even so, we know that in the long run anyone who holds bitcoin will definitely see that it's one of the best and profitable assets ever.

[Brownfish-B]

To me the simplest and most effective approach to Bitcoin investment is holding. This is because you don't have to constantly monitor the market. You purchase bitcoins collect them gradually over a while and just wait. The great thing about holding is you no longer have to make decisions on a daily basis. There's no need to constantly worry about when to buy and when to sell or that the price may go down or up. Bitcoin can be gathered over a period of time and can be maintained for the long haul.

Secondly it lets you avoid worrying about the short-term alteration in price. Bitcoin’s journey involves many ups and downs but a holder doesn't alter their strategy in response to every single movement. To me the beauty of holding is in the simplicity. No complex systems are needed only the discipline of regular accumulation patience and the ability to hold on to the bitcoins. Sometimes the best way to do it is the simplest buy and hold.

[Baki202]

I think holding is the best strategy in bitcoin investment,  because it does not have much risk and it also gives you time to accumulate at your own paste. I see other strategy as gambling,  because you are buying and selling immediately or just hoping for the price to rise in a short while, so you can make profit,  but holding on the other hand gives you the luxury to just accumulate and hold it for a long time, and most times you tend to make profit in the long run. I am not saying that it's certain to make profit in the long run, but your chances are very high,  so that's why I will advice anyone to adapt this strategy,  because to me it still remains the best strategy.

It's one of the best because there is recovery, which is one way your wait can earn you money because you will profit when you buy and hold. The only issue most people have with holding is that they only want to see the market rise; they don't want the market to decline. Aside from the fact that we all know it is not even feasible, we must acknowledge that when the price drops, you may even purchase more, and the bear is like a greater chance to do so; that is the way things are supposed to be. And that is why you will see a lot of people choosing holding over, trading because the knowledge is different and it takes a longer period for you start making money from trading which is not even guaranteed because you will trade for months and nothing to show and it will be better for you to just hold that is a better way.

 

[Soldroplet]

HODLing sounds simple, but I really don't buy the "just set it and forget it" advice. You still have to keep your coins safe, manage your risk, and figure out what you'll do when things shift.

Holding is the easy part. Sitting through the actual ups and downs of a full market cycle is what really tests you.

I agree with you a lot, especially that HODLing does not end with just buying Bitcoin. Security and risk management are also important here. However, I think the real test of holding is not just going through the ups and downs of a complete market cycle. Along with this, it is important to build your cashflow and backup fund in such a way that even if the market is down for a long time, you are not forced to sell Bitcoin for daily expenses. Again, changing your DCA or investment aggressiveness frequently due to market fluctuations is also not a good method. I think it is more important to continue saving Bitcoin regularly with discretionary income according to your cashflow and strengthen your backup fund over time. We can never control the volatility of Bitcoin, but we can create our own financial system to handle that volatility, and this is the important part of holding for me.