Introduction to Crypto Trading
Ever since the success of Bitcoin in the world as well as in India, the craze for crypto trading has become much popular among the people. However, if you are new to this digital monetary concept, then you need to be aware of the factor of volatility in the crypto market.
The rise in double or triple-digit in crypto coin prices and then unexpectedly going downside can lead to sudden profit or loss to crypto traders. Top cryptocurrencies like Ethereum, Bitcoin, and Ripple are also not far away from volatility clutches.
In the previous years, these top-rated coins have been consistent in performing better and being the best choice for investment among the people.
However, it is not that these coins have been successful for crypto trading. They have shared their downsides in the past few months. But surprisingly, there has been a growth of market value. In the scenario of technological evolution, these cryptocurrencies have resulted in huge gains.
HODL: A Popular Strategy Of Crypto Trading
Now comes a well-known strategy for crypto trading, HODL. It is very much popular amongst the blockchain enthusiasts and crypto traders.
But are you familiar with its actual meaning? Well, if not then let me tell you that this term first came into being in 2013 on the Bitcoin forum.
Well, this term was used by a crypto enthusiast when a dip in the Bitcoin price impact him. However, he was not in favor of selling it. And in the inebriated state, he wrote down a text that read ‘’I am HODLing.’’
Now, no need to awake our inner editor, as it might seem a misspelled word of holding, but now it has become a popular acronym used to define holding cryptocurrency.
And the one who holds it is called a ‘HODLer. Bitcoin, being the popular cryptocurrency can be referred to as the best crypto to HODL.
The crypto trading strategy of buying and holding is not that difficult. It all depends upon your approach. You aim to buy and holding cryptos for investment, regardless of the market scenario.
Keeping this approach, a trader would see for a long-term return and will let off any movement of the market on the slow or medium term.
It has been observed that even though HODL has been a successful approach in the past regarding crypto trading, but currently, it has become very crucial to make a profit by relying on one asset and being content over it.
Seven years back, there had been many cryptocurrencies but now the figure has reduced so far. And all of these cryptocurrencies don’t make a promising option for investing your savings. So to increase your chance, you must invest in a portfolio of crypto assets. And the key to success for this is diversification.
Selling Altcoins Quickly
Now there is one more angle to the crypto trading. It is not a compulsive rule for any altcoin to be competitive always, it hardly matters whether you want to HODL or to sell it.
But a good suggestion is you need to sell them whenever you got an opportunity. People who are equipped with cryptocurrency is not necessary high always. A fact is that cryptocurrency operates upon being over-valued or are hyped too much.
So this is what I was telling you about HODL, a very popular crypto trading strategy. Now isn’t it amazing that a person who was touched by the dip in Bitcoin price, did not want to sell it but hold it?
But this guy in the drunken state wrote a text on the Bitcoin forum in 2013, ‘’I am HODLing. Surprisingly, he made this text a popular acronym.
Now, there is no need to re-correct it. In short, the actual meaning of HODL is to holding a cryptocurrency instead of selling it. I would suggest you follow the Cryptoknowmics website to explore more topics.