HODLers: A crypto strategy to make HODL

More and more people are encouraged to invest in cryptocurrencies. As with any other investment, there are numerous strategies that allow you to maximize profits and reduce losses. Next, we will explain more about one of the crypto strategies that are positioned as the most advantageous to operate with this digital medium.

A very beneficial crypto strategy

The crypto strategy that is proving to be one of the most advantageous to operate with this digital medium is HODL.

It is a variant of the English word ‘hold’, which translates to ‘keep cryptocurrencies as if your life depended on it’. This means that this crypto strategy is based on buying cryptocurrencies and, regardless of market fluctuations, maintaining them.

How do we adopt this strategy?

Now, buying and holding cryptocurrencies is easy to understand. But what cryptocurrencies do you have to buy?

Here HODLers comes into play, the name by which the platform that helps to carry out the strategy and those who benefit from it is known. What HODLers does is weight the value of each cryptocurrency in the market to indicate to the investor which are the most advantageous. In this way, the person is prevented from investing all their capital in a single asset. According to this platform, the investor must consider the 10 cryptocurrencies with the highest capitalization in order to define their purchase and maintenance strategy.

Of course, HODLers periodically analyzes the market so that its structure is always up to date. To do this, it relies on all the resources available on the Internet, such as graphs and calculators. In addition, it introduces beginners to the ICONOMI platform, where strategies like this can be learned and copied.

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ICONOMI is endorsed by the Financial Conduct Authority of the United Kingdom, so the investor can have the peace of mind of registering on a legitimate platform.

Advantages and disadvantages of being a HODLer

Of course, the HODLers strategy differs from the trading market in which the investor constantly buys and sells cryptocurrencies.

Its premise is that it is very difficult to predict fluctuations in cryptocurrencies to generate a profitable strategy. The passage of time has shown that, with a long-term strategy, higher profits will be obtained than if it were invested individually, sporadically, without a defined strategy or thinking about the best time to sell.

The main advantages of being a HODLer and adopting this crypto strategy are the following:

  • It is one of the least risky ways to invest in cryptocurrencies. By buying up to 10 different digital currencies, the risks taken by the investor are diversified.
  • Provides long-term benefits. The investor should only be patient when holding the cryptocurrencies. Some experts suggest that you have to keep cryptocurrencies for as long as possible, but the truth is that the HODLer can sell when it sees fit. Of course, a reasonable amount of time must have elapsed to obtain benefits.
  • There is no need to worry about constant market fluctuations. It is very difficult to predict when is the best time to sell, which is why this strategy is one of the simplest of all. Likewise, some platforms that are dedicated to this crypto strategy facilitate the investor’s task by exhaustively analyzing the market for these digital assets so that the investor knows which are the most lucrative cryptocurrencies.
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On the other hand, we must not forget another series of inconveniences that we must always bear in mind.

These include the following:

  • The HODLer is a very long-term investor. For this reason, it is convenient to know what objectives we have, as well as the deadlines that we are going to assign to each of them. In this sense, we cannot adopt a strategy designed for 10 or more years, if we need to have our capital available in 4 years.
  • Another aspect that we must take into account is that when we do HODL, the number of coins we have in our portfolio will not grow. In other words, the number of coins that we have in our possession will not be increased. That means that we can only make a profit if these cryptocurrencies increase in price, that is, they revalue.
  • Investors who adopt this strategy, in the same way, are assuming that the cryptocurrency they buy will be blocked and immobilized in the portfolio of these users. If this practice is adopted by many investors in a certain market, we must know that these retentions reduce the economic dynamism of the cryptocurrency.

And we are talking about a strategy that could be very beneficial, but in the investment world, our profile has the last word.

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