Today, we have reached the end of our series dedicated to suggest different activities to do with cryptocurrencies during the quarantine period. And we want to do it all out, to explain why do Hodling. One of the strategies most interesting investment of the crypto world, that could bring you great benefits in the medium term.
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What is Hodling?
In the first place, we must explain is the investment strategy known as Hodling within the crypto world. Being one of the most simple that you can find in the financial markets, to consist simply in buying all criptoactivos you want to, or can acquire, and then sit back and wait to increase in value. So, no tricks, no traps, the Hodling is simply the acquisition of cryptocurrencies, hoping to sell them at a much higher price tag in the near future. Besides being one of the strategies that biggest gains occur, because the idea of it not sell after a slight increase, but when it is possible to perceive earnings in the billions. The term Hodling, comes from the first days of the existence of cryptocurrencies as the Bitcoin. When in the forum BitcoinTalk, a user known as GameKyuubi commented that it had great skills of trading. So he preferred to just accumulate Bitcoins (holding in English), but had a typo that made write “Hodling”. Going to know this until the day of today. Do Hodling is one of the favorite strategies of traders at the moment This would be precisely the strategy followed by the first crypto millionaires in the world. Which they were able to purchase Bitcoins at very low prices, hovering around 0, and then sell when the criptomoneda reached a quote higher than $ 10,000 per BTC.
Why do it now?
Now, if you understand what is Hodling is fairly simple to conclude why there is that do Hodling at this moment, not so much. After all, the market of Bitcoin takes several days featuring a high volatility. In addition to having suffered a collapse in your price quote along with the rest of the markets due to the Coronavirus. However, if you decide to take the risk, it is probably a good time to do Hodling. Because, right now, the price of Bitcoin is below the potential that it can achieve and which has already reached on other occasions. This means that there may be the opportunity to buy Bitcoins cheap that they can be resold later, when the criptomoneda recover its value. Of course, although it is simple, make Hodling is not exempt of risks. Therefore, as can occur with any of the investment strategies available, the asset in which we put our capital, could act completely differently to the way we expect it to do, generándonos to substantial losses. For this reason, and although this is one of the activities that we recommend to perform with cryptocurrencies during the quarantine period. We recommend that you do so only after having carefully analyzed the market of cryptocurrencies, and decided that, indeed, you want to bet on growth in the medium-or long-term value.