What is HODL?
Is now not a good time to buy crypto? The price of Bitcoin has dropped almost 50% and remains around $20,000. What actions can you take during the bear market?
Not everyone loses money during the bear market. Bitcoin has experienced several declines in the past decade. In some cases, a 90% decrease in value was recorded.
But if you had a chance to go back 10 years ago, wouldn’d you buy Bitcoin when its price was just around several hundred dollars?
There are so many things you can do to protect yourself during the recession. If you believe in the potential of cryptocurrency, don’t miss this article and we will tell you what you can do.
What does HODL mean?
HODL is actually the misspelling of “HOLD”. The prices of cryptocurrencies are volatile, but HODLERS ignore large price swings and keep HODLING. It is an investment strategy where investors invest in crypto and hold it for a long time even if there is a huge price drop.
If you believe that blockchain may be the infrastructure serving billions of people in the future, why do you sell it even if there's a recession?
HODL vs FUD (Fear, Uncertainty and Doubt)
HODL is an investment strategy in which an investor strongly holds the potential crypto assets. It reflects investors’ confidence in crypto assets. They don’t take cryptocurrency as speculation and believe in the potential of it, which may completely change the lifestyle of billions of people in the future.
On the other hand, FUD (Fear, Uncertainty and Doubt) is the opposite of HODL: It means investors are losing confidence in specific assets and they try to sell them out as soon as possible. It will result in a decline in the price.
Recently, a set of bad news related to the blockchain industry like the fall of Luna, the bankruptcy of some famous crypto companies or exchanges, made people lose confidence in crypto and resulted in the bear market.
Does HODL make sense?
HODL has been proven as a successful investment strategy. Similar to the buy and hold strategy in the stock market, if you believe that a company will succeed in the future, you will ignore the volatility in the price.
If you also believe that the Blockchain, like Bitcoin, will change the future of the centralized financial system, Ethereum will change our lifestyle, HODL is a strategy that you can take in both bull and bear markets.
HODL is typically used in long-term investment without considering the entering timing. If you have no time or are not good at short-term trading, you can only focus on the potential of crypto assets.
Some people think that HODLERS are losing the chance of benefiting from the volatility of the market. But if you don’t want to take any risks, HODL may be suitable for you.
How do you start HODL?
Before making any investment decision, research and understanding the market is essential to long term success.
Here’s the things you can do research to understand the crypto market:
Follow different social media platforms to keep tracking the latest news of crypto. You can follow our social media channel at the end of the article.
Deep dive into the knowledge and development of the crypto industry. Like Bitget Academy, we keep releasing the latest updates of market and industry knowledge.
Applying different indicators to have a better understanding of the market emotion and coins. In the Trading 101 series, you can see how expert traders make decisions in different scenarios.
Dollar-cost averaging is an investment strategy that aims to reduce the volatility of assets like crypto. The most common practice of dollar-cost averaging in crypto is buying equal fiat amounts of crypto regularly.
For example, you plan to allocate $1000 to purchase Bitcoin every month. No matter whether the price of Bitcoin is up or down, you keep investing $1000 in Bitcoin every month.
The higher the price is, the fewer you buy. The lower the price is, the more you buy. That’s the simplest investment strategy you can take right now.
Learn to earn with flexible saving
You may be sick of active trading as it’s too time-consuming and stressful and that affects your quality of life. Even if you've spent so much time and effort, the return still remains at an average level.
Trading is not the only option that can make money and bring you a better life. Due to the maturity of the crypto market, flexible and stable crypto investment plans are now open to the public.
If you want to spend less time and make money at the same time in crypto, you can choose to pick a more passive investment strategy on Bitget. Like Bitget Flexible Saving, allowing you to deposit crypto to earn interest every day and redeem it at any time.
This picture shows the APY of different coins. When you subscribe to a Flexible Savings product, funds will be deducted from your spot account. You will receive your daily interest payments in your spot account within two days.
Do you worry about the risk of Bitget Flexible Saving? Bitget is an industrial leading crypto derivatives exchange and its trading volume usually remains top 5 on the market according to CoinMarketCap.
On the other hand, Bitget has already obtained different licenses from different countries, like Australia Digital Currency Spot (DCE) License, U.S. MSB License Money Services Business and Canada MSB License Money Services Business, which means Bitget Flexible Saving is completely legal and secured.
Don’t really know how to start? Click here to check out the latest update of Flexible Saving right now.
P.S. The APY of each coin is changed according to the demand. If you miss the latest update of Flexible Saving, you may not enjoy the highest APY.
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