Blockchain
How to be a better hodler, explained
Hodling is by no means easy, but there are ways to ensure you don’t act impulsively and let your crypto do the hard work for you.
Leaving cryptocurrencies can end up being the lowest-risk strategy in the long run.
The crypto markets fluctuate wildly on a daily basis — and attempting to time the market is exceptionally unwise to say the least.
Indeed, the same is true for other assets such as stocks. Recent research looked at what would have happened if someone invested $10,000 in the S&P 500 back in 2006 — and looked at a number of different scenarios.
Those who remained fully invested ended up with a balance of $41,100 by Dec. 31, 2020. Missing the market’s 10 best days would have resulted in a balance of $18,829 — that’s a whole $22,270 less.
Comparably, jumping in and out of crypto also creates the risk of missing the market’s best days. We’ve seen how Bitcoin and Ether have managed to post dramatic double-digit surges within a matter of hours. Selling off your crypto in a panic creates a far larger risk to the health of a portfolio.
Finding the projects you truly believe in and resisting the fear of missing out is a strategy that’s proven itself time and time again for crypto investors.
