What is the concept of Hold coin?
Hodl and Hold both mean the same thing as “to hold”. In the cryptocurrency market, Hold coin is understood as holding a certain coin without selling it even when the market fluctuates or drops in price. We can also simply understand that Hodl coin is a form of long-term investment, different from short-term investment which is trade coin.
For example: You choose a good Altcoin, you feel this coin has great growth potential in the future, you buy a quantity of this coin and decide to store it for at least 1 or 2 years, until When you reach the expected price, you will sell. During that 1 or 2 year period, you will not sell even if the price drops. At this time, you are called a "Holder" and your holding of coins is called is Hodl coin.
This term first appeared in 2013 on the Bitcoin talk forum from a member with the nickname GameKyuubi with a topic titled "I AM HODLING". Since then, this misspelled phrase has become very popular in the cryptocurrency world. Whenever someone says hodling or wanting to hodl, it means they believe that the coin they hold will take off someday, not today.
Is Hold Coin effective or not?
Evaluating whether Hold coin is a good investment option depends largely on the time, location, coin you choose, and most importantly luck. If you participate in Crypto investment in early 2017, If you buy any coin, you will win, because in less than 1 year the value of the coins will even increase by 30 - 3000 times. The best and most effective time to Hold Coin is when the market "warms up" and begins to move into the bullish phase.
What are the factors to become a Holder?
People who believe in the Block chain technology platform.
Those who believe in the digital currency market will explode in the future, when the market capitalization will even reach several billion dollars.
Investors have patience and steadfastness.
Have idle money that does not need to be used at the present time
Love investing in Coins, but don't have the time or experience to trade effectively.
What is the difference between Hold Coin and Trade coin?
It can be said that Trade coin and Hold Coin are two completely opposite investment methods. While Trade coin is a short-term investment, buying and selling coins even within 1-2 minutes when you see profit. Hold coin is a long-term investment, holding coins for several months, even years until the set price is reached.
To become a trader, you need to understand the market, and know some skills that are:
Chart analysis skills - technical analysis, must clearly understand indicators (Bollinger Bands), MACD, RSI, candlestick charts, etc.
Understand the market deeply and understand information sources as quickly as possible, because coin value will be greatly affected by market news.
Spend a lot of time sitting at the computer, monitoring charts, and entering and exiting orders appropriately. Without a strong mentality, it is often difficult to become a successful trader.
As for holders (Hold coin investors), they do not need to know as much as a trader, but only need to know basic knowledge about buying and selling coins, how to store on wallets, create accounts,,,,
Should we combine both Hold and Trade methods?
To be successful in the crypto market, it is best for investors to combine both methods, both to reduce pressure in each trading order and to avoid the risk of making the wrong choice if the coin you choose to Hold is lost. drop. However, if you decide to be both a trader and a holder, you need to be consistent in your investment style from the beginning. The best way is to allocate capital to Trade coin and Hold coin separately and divide into 2 accounts. The biggest secret to success in this market is "Don't put all your eggs in one basket", at any cost, "Capital preservation is still the top priority". Therefore, when holding, you should choose Top Coins such as: Bitcoin, Ethereum, Ripple,... and some other potential coins to avoid danger.
In case BTC price drops – should you hold coins?
There are many factors that affect the price of BTC. For new players, the constant stream of news about hacks related to a certain virtual currency is also one of the factors affecting the price. Executives and economists around the world have also joined in criticizing BTC in the mass media. These criticisms have made government regulators more cautious in controlling BTC. Online platforms that previously supported Bitcoin or hodl coins have also begun to tighten or remove virtual currencies from their ecosystems. Google, Facebook, Twitter or Reddit are among the major companies that have restricted advertisements about virtual currencies as well as blocked all BTC-based payments.
In case the price of BTC increases – the market is vibrant (bull market)
The most important thing to have first is to be steadfast in order to fully exploit the rising price trend. The government's recent responses also show positive signs going forward. CBOE led the push for the SEC to introduce a Bitcoin ETF. Technical developments in the Bitcoin system also point to a brighter future. The list of nodes accepting Lighting Network is growing every day. For those who believe in BTC's bright future, these clues will help us avoid the downside of last year's rapid price increase, as well as ensure better support going forward.
