Why You Shouldn’t HODL Crypto [53 Reasons Why]
Just kidding, there’s only one reason. But now that you’re here, you might as well learn why hodling is a poor use of your time and money investment.
People that hodl their cryptocurrencies feel that they are getting so rich off of the back of their crypto trading strategy that they might even be able to renamed yodeling, “hodling”. However, cryptocurrency trading experts can show major flaws in the hodl approach. After all, if hodling was actually successful, everyone would be doing it. If you hodled in 2017 and didn’t sell when the spike happened, you’ll know true pain, and will know why hodling is never the right strategy. Here is why cryptocurrency trading experts believe you should never hodl if you want to make the most of your crypto investment, alongside some helpful analogies.
Table of Contents
Hodling is like a teddy bear
Hodling gives you a warm and fuzzy feeling. You watch the crypto market, see prices go up, and you hug your teddy bear real tight. Unfortunately, the teddy bear isn’t alive, and really neither are your profits. The entire concept of hodling is that you are betting on the future of cryptocurrency. You’re saying “I don’t care if I make money right now, because I know when cryptocurrencies enter the mainstream, I will have a huge leg up immediately, and all of my investments will have been worth it.” That’s a totally defensible position to take up, but it’s important that you understand that the minute changes in the cryptocurrency market aren’t actually being reflected in how well your investment appreciates.
Seeing that your portfolio is worth 20% more now than when you invested is really nice to see, and it gives you the security that you could cash out at any point for a profit. But if you are truly hodling, you are not interested in doing that any time soon, and so this 20% profit is entirely hypothetical and will not be realized.
Cryptocurrency trading is like planting vegetables
Cryptocurrency trading for many people is a real no-brainer. With any amount of investment, you can trade intelligently and turn a nice profit. In this way, cryptocurrency trading is like planting vegetables. You plant your initial investment seeds, they grow until you’re ready to harvest your profit vegetables, and then you take some of the remaining profit seeds and start the whole process over again.
The reason why some people prefer hodling to true crypto trading is that you don’t get as much of a warm feeling when you hug vegetables. Vegetables aren’t flashy or romantic, but in the end, they’re much better to eat.
Cryptocurrency trading tools are like your gardening equipment
To continue this vegetable analogy a bit, it can also be said that planting these vegetable seeds with your bare hands is probably not the best way of going about it. It’s doable, but certainly not efficient. Instead, you would want access to the right tools to make this job a lot easier. This is where cryptocurrency trading tools come in.
Some tools are simple execution bots, like your shovel and hoe. They do the job you need them to do, but won’t go much beyond that. On the complete other end of the spectrum, artificial intelligence tools, especially those that introduce an extra layer of dynamic capabilities with machine learning, are much more akin to a large greenhouse, fully stocked with vegetable scientists.
RoninAi is one such greenhouse. It uses Ai and ML technologies to give incredibly precise predictions of upcoming market movements, allowing you to capitalize on the changes in the market, big and small, to maximize your cryptocurrency investments. To learn more about the science behind RoninAi and how you can get your hands on the exciting technology, click here.
In conclusion: teddy bears; vegetables; greenhouses.
Hodling is popular. A lot of people do it. But that doesn’t mean that it is the best use of your time or your cryptocurrency investments. It makes people feel good about their strategy, or lack thereof, because they experience the good feelings associated with making money in the crypto market, but without the actual end game of cashing out and receiving rewards for their smart investments.
Resisting the urge to hodl might seem like trading in your teddy bear and good vibes for a bunch of vegetables, but those vegetables will actually feed you and give you actual results. If you want to make the most out of your cryptocurrency trading, or vegetable farming in this analogy, you should commit to locating and using the best cryptocurrency trading tool you can find. There are many out there on the market, but RoninAi is the most technologically advanced and most dynamic, ensuring that it is suited to every market condition.