Over the past weeks, crypto investors have experienced several upheavals at once. The correction has led to the fact that they do not know what to do with the surviving finances – to sell or hold?
Perhaps one of the best strategies for investors is HODL. It is the calmest and long-term investment option, in which assets are kept in accounts for years. And they don’t flinch about weekly exchange rate fluctuations, especially when it comes to cryptocurrencies.
Here are some benefits of the HODL strategy:
- no need to constantly monitor exchange rate fluctuations, study trading, and stock analysis;
- no need to often conduct transactions, losing on commission;
- having bought assets at the start, you are more likely to win in the long run;
- it is the rejection of speculation and the maintenance of the vision of bitcoin;
- holding contributes to the stability of the network.
How much did hodlers make in 10 years?
In February 2011, 1 BTC = $1. By investing $100, the hodler received 100 bitcoins. Even with the depreciation, he would now have $38,000.
In February 2015, 1 BTC = $250. With the same investment, the hodler’s fortune would rise to $15,000 today.
And, say, in February 2020, Bitcoin was worth $8500. By today, a humble saver with a starting balance of $100 would have received $450.
As we can see, the HODL strategy works at any time because bitcoin is constantly growing.
How to choose a cryptocurrency for HODL?
- Choose any cryptocurrency or several currencies from the list of the top 10 or 20 cryptocurrencies according to Coinmarketcap. You can choose top assets that everyone is talking about, like Bitcoin, Ethereum, or Monero. All of them have grown by thousands of percent in recent years. Pay attention to the real support of projects by financial institutions, loans, and reputable industry players.
- Pay attention to undervalued crypto assets that have growth potential. Before implementing this method, it is better to consult with experts and take the time to analyze and evaluate the project’s prospects. Is the development team real? What investments has it already attracted? To what extent is the white paper respected? What do analysts say about the long-term perspective of the project?
- Invest in cryptocurrency portfolios consisting of promising and reliable projects. This will allow you to diversify your risks and get good returns in the long run. For example, ECOS offers three such portfolios: ECOS Ventures, Metaverse, and Buffet Index.
So, HODL is the most convenient and economical way to invest in cryptocurrencies, especially in the early stages. Thanks to this, investors get the opportunity to increase capital in the long term and not be afraid of market shocks.