Today, we have reached the end of our series dedicated to suggesting different activities to do with cryptocurrencies during quarantine. And we want to do it in style, explaining why do Hodling. One of the most interesting investment strategies in the crypto world, which could bring you great benefits in the medium term.
What is Hodling?
First, we must explain what the investment strategy known as Hodling consists of within the crypto world. Being one of the simplest that you can find in the financial markets, by simply consisting of buying all the crypto assets that you want or can acquire, and then sit and wait for them to increase in value.
That’s right, no tricks or cheats, the Hodling is simply acquiring cryptocurrencies, hoping to be able to sell them at a much higher price in the near future. Being also one of the strategies that produce the highest profits, since the idea of it would not be to sell after a slight increase, but when it is possible to perceive multi-million dollar profits.
The term Hodling comes from the first days of existence of cryptocurrencies like Bitcoin. When on the BitcoinTalk forum, a user known as GameKyuubi commented that he did not have great trading skills. So he preferred simply to accumulate Bitcoins (holding in English), but had a typing error that made him write “Hodling”. Becoming known in this way until today.
This would be exactly the strategy followed by the world’s first crypto millionaires. Which managed to buy Bitcoins at very low prices, hovering around 0, and then sell them when the cryptocurrency reached a price above $ 10,000 per BTC.
Why do it now?
Now, if understanding what Hodling consists of is quite simple, concluding why you have to do Hodling right now is not so easy. After all, the Bitcoin market has been highly volatile for several days. In addition to having suffered a collapse in its price along with the rest of the markets, due to the Coronavirus.
However, if you do decide to take the risk, this is probably a good time to Hodling. Well, right now, the price of Bitcoin is below the potential that it can reach and has already reached on other occasions.
This means that we could be faced with the opportunity to acquire cheap Bitcoins that can be resold later, when the cryptocurrency recovers its value.
Of course, although it is simple, Hodling is not without risks. Well, as can happen with any of the available investment strategies, the asset in which we have put our capital, could act in a completely different way than we expect it to, generating significant losses.
For this reason, and although this is one of the activities that we recommend to carry out with cryptocurrencies during quarantine. We advise you to do so only after having carefully analyzed the cryptocurrency market and decided that, indeed, you want to bet on growth in the medium or long term of its value.