If you still hodl crypto and your wallet survived the previous two years – why stopping now? And in case you are new in the crypto world, you can also make money by HODLing in 2020 and onwards.
For those who don’t know, the term “hodl” is a forum typo by a drunk bitcoin trader.
Nowadays, it is a part of many memes and funny videos. What is more interesting, some reports claim that mentioning hodl increases crypto volatility. Naming it “weird connection,” “HODL” mentions on Reddit increase when bitcoin’s price going down while muted during bulls’ time.
I think that it could also be vice versa – that period of volatility imposes people to post these memes.
Whatever is the case, volatility means making or losing bigger sums of money. And hodling is the same, just in a more prolonged period. It is because those that hodl also can lose everything or profit big time, but depending on the faith of crypto.
If someone were hodling Bitcoin from the beginning of 2016, selling at the end of 2017 would bring them a profit of 5213%.
Of course, buying low and selling at the highest price requires nerves of steel.
But, is it possible to make profits but still hodl crypto?
Yes is the answer, and I will describe the best strategy to combine selling and hodling to make a profit.
Like many others, the crypto community has its own set of rules. First of all, they use different channels of communication. Due to its story on privacy that is compelling to crypto users, Telegram is the most popular messaging app.
Think of it, holding on is the whole notion of this community. For this reason, those that hodl crypto will also support crypto media and their forums.
Why is the crypto community this important?
It is because when being part of the community, you will be the first to notice the sentiment of the market. Of course, the crypto community consists of both whales and extreme hodlers.
The first group can make a massive impact on the market, as their selling moves the price down. At the same time, those that erratically hodl crypto are the best evangelists of the idea. If these guys lose faith, you should sell fast.
However, selling all your crypto belongings gets you out of the game. In a strategy I’m promoting, you shouldn’t sell it all. Keeping a piece of your initial investment will still make you a profit if cryptocurrencies gain more value in the future.
Even though many members of the crypto community wouldn’t agree, the wisest is to sell the amount of ROI that covered your investment. If, for example, you bought Bitcoin at the price of $6,000. It would be wise to sell half of it when the price reaches $12,000. This way you took your money back, and you can only profit if Bitcoin goes to $100,000.
As soon as the prices rise so you can return your initial investment, it is wisest to sell. This way, you will remove the risk of losing, and if the crypto both rises or falls – you can only win.
Hodl Crypto News and Videos
Besides noticing the sentiment of the crypto community, think of making your impact. Do you find it hard to write or to shoot some video?
Well, as I am writing comic books, it is most comfortable for me to write. I consider it a small contribution from my side. And if it helps to get more people to buy crypto – the value I hodl will rise. This is my model of making money by hodling.
On the other hand, my friend Hunter is sharing “impressive” (as he would say) crypto news. If you are already at crypto forums, the chances are high that you read some of his comments. With the same intent as I have, he is just using his methods.
Why not do the same?
If you are not good at writing, maybe you are fantastic in front of the camera. In this case, you can start your youtube channel. At the moment, these channels are getting a lot of traction.
Another way is to stream your thoughts or trading moves at the Twitch crypto section.
Whatever you choose, to hodl crypto is not equal to the lethargy. So, don’t be lazy and help us educate people on crypto. And if you are outstanding, the new type of profit can come out of it.
Imagine having your crypto belongings rise while you are making money from channel views. Well, it is also a model of making money while hodling.
Of course, in all these cases, you should be ethical or the crypto community might kick you out or post some awful comments at least.
The Best Way to Make Money
As an avid crypto supporter, I think that each of us should think of our influence on the big picture.
For this reason, we should be reasonable if the half we are selling will influence the crypto market. If I need to do it, I would first exchange for some other coins, and then sell the portfolio. That way, I wouldn’t influence the price so that my, and others, remaining investment turn to dust.
However, those that are practicing the Pump and Dump are worst enemies than those that oppose crypto. In a way, public figures that oppose crypto are also helping it grow as more people hear about it.
As mentioned, the best time to sell is when your profit can cover your initial investment. In an extreme case of some significant crash, you can sell to save your money.
The term for this sudden downfall is the flash crash, and it is still possible to happen. Think of the impact of Trump’s comment comparing crypto with “thin air.” Even though its influence evaporated, I remember I felt the air was freezing when reading the statement.
Imagine sipping a cocktail at the beach, enjoying the feeling that you made a fortune on crypto. As always, when you return to the bar with WiFi, you check the charts. All of a sudden, you can’t afford another cocktail because Bitcoin went to zero. At the very moment when you would need a cocktail the most!
To avoid similar cases that can stress you out to sell, think of investing and selling a bit to make profits. Afterward, you can buy more until you make enough to hodl crypto. Yes, it is a form of trading, but it keeps you in shape to hodl crypto for long.
After all, that would suit most of us that believe in crypto. And if you manage to do so, please share the story. It will make your profit rise even more!